Investing › RESP-Education Savings Plan

Registered Education Savings Plan

Save for your child's education with
the Universal Child Care Benefit
increase.

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

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Plus, your savings grow tax-deferred until withdrawn.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.

How can I benefit from the increased
Universal Child Care Benefit?

The sooner you put your Universal Child Care Benefit into an Education Savings Plan at TD, the more time your contributions have to grow.

Age 0 – 5 $160 per month RESP at TD. Age 6 – 17 $60 per month

Did you know?

Starting in January 2015, the government added $60 on top of existing UCCB payments for parents.1 Children between 0-5 will receive up to $160 monthly and those 6-17 will receive up to $60. That’s a total of up to $20,160 per child in lifetime benefits.

With an Education Savings Plan, you're eligible to receive the Canada 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 you could receive up to $4,0322 in CESG benefits per child when you contribute your full UCCB payments from age 0 to 17 amounting to $20,160 to an RESP.3

= $20,160 + $4,032

On July 20th, you could be eligible for a lump-sum retroactive payment for the first 6 months of 2015, plus your July payment. So start or increase your education savings by putting your UCCB into a RESP at TD.

Start an Education Savings Plan at TD today

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 contribution room.
Learn about the different grant programs

Tax-deferred growth

You can contribute up to $50,0003 per child and there are no taxes payable on the money earned in an RESP until it’s withdrawn. When RESP grants and earnings are withdrawn by the child for educational purposes, they are taxed at the student's generally low tax rate.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?

Try the Education Savings Calculator

Start an RESP today

Visit any TD Canada Trust Branch

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

1 Subject to parliamentary approval.
2 $4,032 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).
3 $50,000 per child is the lifetime contribution limit.

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.

Learn about mutual funds

 

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.
Important Mutual Funds Information

A TD Direct Investing RESP 3

A TD Direct Investing RESP3 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 1-866-222-3456 to discuss your options

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) 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. 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)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 The Canada Learning Bond (CLB) can add up to $2,000 to your RESP per child.


Provincial Grants2,3

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 limit.
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 up to a maximum return.
3 Refers 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 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.

Start an RESP today

Visit any TD Canada Trust Branch

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