Registered Education Savings Plan
Save for your child's education with
the Canada Child Benefit.
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TD Canada Trust Branch
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What is an RESP?
A Registered Education Savings Plan, or RESP, is a government-registered savings plan that helps you save for a child’s post-secondary education. And the federal government can add to your savings with education grants.
Plus, your savings grow tax-deferred until withdrawn. When the student withdraws the investment income and grants for educational purposes, the withdrawals are taxed in the student’s hands, typically at a lower rate.
Build education savings for your child using
the Canada Child Benefit (CCB)
The sooner you put your Canada Child Benefit into an Education Savings Plan at TD, the more time your contributions will have to grow.
Check out the Canada Revenue Agency's Benefits calculator to get an estimate on how much your CCB will be.
Did you know?
With an Education Savings Plan, you're eligible to receive the Canadian Education Savings Grant (CESG) which matches 20% of annual contributions up to a maximum of $500 per year and $7,200 lifetime limit per child. That means that, if you save $100 a month you could receive up to $4,320 in CESG benefits per child when you contribute your full CCB payments from age 0-17 amounting to $21,600 to an RESP.1
So start or increase your education savings by putting your CCB into a RESP at TD.
What are the benefits of RESPs?
A government grant helps the savings grow
To encourage saving for higher education, the federal and some provincial governments offer grant and tax incentive programs – without impacting your RESP contribution room.
Learn about the different RESP and grant programs
Tax-deferred growth
You can contribute up to $50,0002 per child and there are no taxes payable on the money earned in an RESP until it’s withdrawn. When RESP grants and earnings are withdrawn by the child for educational purposes, they are taxed at the student's generally low tax rate.
The sooner you start, the more you can save
All a child needs to become the beneficiary of an RESP is a Social Insurance Number (SIN). Look at how much more can be saved for a child’s education by starting a savings plan sooner.
Want to know how much you could save for a child in an RESP?
1 $4,320 is calculated on the assumption that the RESP is eligible for the Canada Education Savings Grant (CESG). The CESG will top up annual RESP contributions by 20% on the first $2,500 in contributions (up to $500 per child each year, to a lifetime limit of $7,200, per child).
TD makes it easy to save
A Registered Education Savings Plan (RESP) can help make saving for a child’s education easier. With a wide range of investment options available, you’re sure to find an RESP at TD that’s right for you, whether an Individual Beneficiary or Family Beneficiary plan.
What types of RESPs are available?
TD Canada Trust RESP
A Registered Education Savings Plan, or RESP, is a government-registered savings plan that lets savings grow tax-deferred until a child is ready for college or university. It’s also a great place to purchase GICs and Term Deposits because the earnings are not taxed until withdrawn, generally at a student’s lower tax rate.
Learn about Guaranteed Investment Certificates (GICs) and Term Deposits
The highlights:
- Your principal (initial investment) is fully protected
- Choose from fixed rate or Market- Growth GICs1
- A full range of terms, features and competitive rates with investment flexibility
- Plus, the RESP has no fees.
TD Mutual Funds RESP
A Registered Education Savings Plan (RESP) is a great place to purchase investments like mutual funds because you don’t pay any tax on the income you earn on your investment until the money is withdrawn for educational purposes.
The highlights:
- Gain access to a wide range of investments that would otherwise be difficult and time-consuming to purchase and manage individually
- Actively managed mutual funds give you the benefit of professional investment management
- You have the option to choose TD Comfort Portfolios for a convenient all-in-one investment solution managed by our professional portfolio managers.
A TD Direct Investing RESP 3
A TD Direct Investing RESP3 puts the power of saving your money in your hands.
The highlights:
- Self-directed account options
- Flexibility to hold a range of investments in one account
1 With Market Growth GICs, your return is based upon the change, if any, in the stated underlying stock market index or indices over the term of the GIC up to a maximum return.
2 Refers to the TD Securities Inc. Self-Directed Education Savings Plan.
3 Refers to the TD Securities Inc. Self-Directed Education Savings Plan.
Government grants help savings grow
The Government of Canada encourages saving for a child's education by offering grants to a child’s RESP– that’s even more money to grow your savings!
Canada Education Savings Grant (CESG)
The basic Canada Education Savings Grant (CESG) will top up your annual contribution by 20%, up to $500 per beneficiary each year to a lifetime limit of $7,200. Additional CESG grants may be available, depending on your income. For example, if your net family income is $60,000, and you contribute $2,000 in a year, the government CESG contributes an additional $450 to the child’s RESP.
| Summary of basic and additional CESG | ||
|---|---|---|
| Family net income * | CESG rate on first $500 (or less) in contribution per year | CESG rate on contributions above $500 per year** |
| $44,701 or less | 40% (basic CESG + 20% additional CESG***) | 20% (basic CESG) |
| $44,701 - $89,401 | 30% (basic CESG + 10% additional CESG) | 20% (basic CESG) |
| More than $89,401 | 20% (basic CESG) | 20% (basic CESG) |
* Figures may change annually.
** Subject to the annual CESG limit.
*** If available in your RESP plan.
The Canada Learning Bond (CLB)
This grant is available to children born on or after January 1, 2004, whose families are eligible to receive the National Child Benefit Supplement. The The Canada Learning Bond (CLB) can add up to $2,000 to your RESP per child.
Provincial Grants*
The Québec Education Savings Incentive (QESI) was established to encourage Québec families to save for the post-secondary education of their children.
The British Columbia Training and Education Savings Grant (BCTESG) is a one-time savings incentive to encourage BC families to start planning and planning for their children's education.
The Saskatchewan Advantage Grant for Education Savings (SAGES) will help Saskatchewan families save for their children’s post-secondary education.
* If available in your RESP plan
Have a few questions?
We’ve provided answers to some of the most common questions people have about RESPs. Take a look below to find helpful information.
What happens if the beneficiary decides not to pursue a post-secondary education or I need to withdraw the money?
You have a number of options, including -
- transfer the RESP assets to another eligible beneficiary
- withdraw the funds yourself (you must repay the government grants and pay taxes and a surcharge on investment income you withdraw)
- transfer up to $50,000 of the investment income to the subscriber's regular or spousal Retirement Savings Plan (RSP)if there is enough contribution room
- donate the investment income to a Canadian educational institution
Conditions apply to all of these options, so please ask us for details.
Expand Can I transfer funds between RESPs?
Yes, a transfer between RESPs can be made under certain conditions. Please ask us for details.
Expand How long does my child have to decide whether or not to pursue a post-secondary education?
Your child does not have to attend college or university right after high school; however, an RESP must be terminated in the 35th year following the year in which the plan was established.
Expand How do I withdraw from my RESP?
Visit a branch and speak to one of our Financial Advisors.