Investing › RESP-Education Savings Plan

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

Visit any TD Canada Trust Branch or call 1-866-222-3456

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or university, an RESP can really help because the government provides grants while the savings grow tax-deferred until withdrawn.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.

Tax-deferred growth

You can contribute up to $50,000 1 per child and there are no taxes payable on the money earned in an RESP until it’s withdrawn. When RESP grants and earnings are withdrawn by the child for educational purposes, they are taxed at the student's generally low tax rate.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.


How much you can save by contributing $200 a month.

Assumptions: 6% rate of return compounded annually until child is 18 years old


Start an RESP today

Visit tddirectinvesting.com

Call 1-866-222-3456 to discuss your options

1 $50,000 per child is the lifetime contribution amount

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?


TD Guaranteed Investment Certificates (GICs)

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 It’s also a great place to purchase GICs and Term Deposits because the earnings are not taxed until withdrawn, generally at a student’s lower tax rate.

Learn about Guaranteed Investment Certificates (GICs) and Term Deposits

 

The highlights:

  • 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.

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.

Learn about mutual funds

 

The highlights:

Start an RESP today
  • 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.

TD Waterhouse RESP 3

A TD Waterhouse RESP puts the power of saving your money in your hands.

Find out more

 

The highlights:

  • Self-directed account options
  • Flexibility to hold a range of investments in one account

Start an RESP today

Visit any TD Canada Trust Branch

call 1-800-560-6374 to book an appointment

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 Disability 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

* Figures may change annually.

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.


Provincial Grants2,3

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.


 

Start an RESP today

Visit any TD Canada Trust Branch

Call 1-866-222-3456 to discuss your options

1 $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.

Collapse 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 for 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 Advisor.