Registered Education Savings Plan
RESPs help you save for a child’s post-secondary education because the government adds to your savings with grant money.
How to Apply
A Registered Education Savings Plan, or RESP, is a special savings plan to help you save for a child’s post-secondary education. With the rising costs associated with sending a child to college or university, an RESP can really help because the government provides grants while the savings grow tax-deferred until withdrawn. When the student withdraws the funds for educational purposes, the withdrawals are taxed in the student’s hands, typically at a lower rate.
What are the benefits of RESPs?
Government grants helps the savings grow
To encourage saving for higher education, the federal and provincial government offers grant and tax incentive programs – without impacting your contribution room. Learn the different grant programs.
You can contribute up to $50,000 1 per child and there are no taxes payable on the money earned in an RESP until it’s withdrawn. When RESP grants and earnings are withdrawn by the child for educational purposes, they are taxed at the student's generally low tax rate.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 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.
Start an RESP today
TD makes it easy to save
A TD Registered Education Savings Plan (RESP) can help make saving for a child’s education easier. With a wide range of investment options available, including Individual Beneficiary and Family Beneficiary plans, you’re sure to find a TD RESP that’s right for you.
What types of RESPs are available?
A Registered Education Savings Plan, or RESP, is a special 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 It’s also a great place to purchase GICs and Term Deposits because the earnings are not taxed until withdrawn, generally at a student’s lower tax rate.
- Your principal (initial investment) is fully protected
- Choose from fixed rates or Market-Growth GICs1
- A full range of terms, features and competitive rates with investment flexibility
- Plus, the RESP has no fees.
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like mutual funds because you don’t pay any tax on the income you earn on your investment until the money is withdrawn for educational purposes.
- 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 Waterhouse RESP puts the power of saving your money in your hands.
- Self-directed account options
- Flexibility to hold a range of investments in one account
Start an RESP today
Government grants help savings grow
The Government of Canada encourages saving for a child's education after high school by making contributions to a child’s RESP with grants – that’s even more money to grow your savings!
Canada Education Savings Grant (CDSG)
The basic Canada Education Savings Grant (CESG) 1,2,3, 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.
|Summary of basic and additional CESG|
|Family net income *||CESG rate on first $500 (or less) in contributions per year||CESG rate on contributions between $500 and $2,500 per year|
|$41,544 or less||20% basic + 20% additional||20% basic|
|$41,545 - $83,088||20% basic + 10% additional||20% basic|
|More than $83,088||20% basic||20% basic|
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.
The Canada Learning Bond (CLB)2
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 Canada Learning Bond (CLB) can add up to $2,000 to your RESP per child.
The Alberta Centennial Education Savings Grant can add up to $800 to an RESP for every child born to or adopted by Alberta residents, subject to qualifications. The Québec Education Savings Incentive (QESI) is an annual refundable tax credit from the provincial government available to eligible RESP beneficiaries who reside in Québec.
$50,000 per child is the lifetime contribution amount.
2 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.
3 Refer to the TD Securities Inc. Self-Directed Education Savings 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.