1. What is an RESP?

An RESP is a tax-sheltered savings plan designed to help you save efficiently for a child’s post-secondary education. Provided certain conditions are met, anyone – parents, guardians, grandparents, other relatives and friends – can open an RESP account for a child and contribute up to $50,000 to it.

2. Why should I open an RESP?

There are 2 principle advantages to opening an RESP

  • Any growth that accumulates in the RESP is tax-sheltered. Also upon withdrawal the growth is taxable in the hands of the beneficiary which will typically have a lower tax rate.
  • The government offers significant incentives in the form of education grants. Please refer to the Grants section of this website for more details.
3. What do I need to open an RESP?

All you need is a Social Insurance Number (SIN) for yourself and the beneficiary to open an RESP account and apply for the government grants.

For more information on acquiring a SIN please refer to the RESP Requirements section of this website or click here to visit the Service Canada website.

4. Who can contribute to the child’s RESP?

For individual plans, anyone can open and contribute up to $50,000 in an RESP account for a child. For family plans, the beneficiary must be a child, grandchild or sibling of the contributor.

5. How much can I contribute to an RESP?

While there is no annual RESP contribution limit, the lifetime contribution limit is $50,000 per beneficiary. It is important to note however, the maximum annual RESP contribution that will qualify for the Canada Education Savings Grant (CESG) is $2,500 per beneficiary per year.

6. What are the RESP grant limits?

A child may be eligible for up to $7,200 from the Canada Education Savings Grant (CESG), $2,000 from the Canada Learning Bond (CBL) and $3,600 from the Quebec Education Savings Incentive (QESI) over their lifetime. Please refer to the Grants section of this website for more details.

7. How do I apply for the CESG and other government grants?

You will need to open an RESP account and complete the applicable grant application forms. Our advisors will be able to guide you through the application process.

8. When are the grants deposited in my account?

The federal pays the Canada education savings grant (CESG) on the last day of the month following the month your contribution was made. Thus, for a contribution you made in July, the federal grant will be credited on your account on the last day of August. At the provincial level, the Quebec Education Savings Incentive (QESI) is deposited on your account once a year, always before the end of May. So for all the contributions you made in a given year, the provincial grant will be paid only before the end of May the following year.

9. How is the RESP invested?

How you invest your RESP contributions should be based on your unique investment objectives, time horizon and tolerance for risk. Offering a complete family of funds providing access to all major asset classes, FÉRIQUE Funds is sure to have a solution that meets your particular needs.

Our advisors can help you build a diversified portfolio of FÉRIQUE funds that is in line with your investor profile.

10. How do I withdraw money from an RESP to pay for post-secondary education?

You will be required to provide proof of enrolment in a qualifying program at a post-secondary institution. Additionally, an RESP redemption form must be completed and you must request an Education Assistance Payment (EAP). EAP is money paid by the RESP to a student to help with their post-secondary education. The EAP includes all earning and grant amounts only (not the principal contributions). To qualify for an EAP, a student must:

  • Be enrolled in a post-secondary program;
  • Not be enrolled in an educational program as part of a work-related initiative.

Please refer to the Withdrawals section of this website for more details.

11. What happens if my child does not pursue post-secondary education?

Should your child decide not to pursue post-secondary education the funds can be transferred or withdrawn, in most cases, without tax consequences or penalties. Please refer to the Withdrawals and Transfers sections for more information.


Legal notice

This communication does not constitute an offer or a solicitation of any nature in any jurisdiction in which such an offer or solicitation would not be authorized or to any person to whom it would be illegal to make such an offer or solicitation. The information contained in this Web site does not constitute specific advice of a financial, legal, accounting or fiscal nature concerning investments.

The information contained in this communication is subject to change without notice, and Services d'investissement FÉRIQUE and Gestion FÉRIQUE may not be held liable for any inaccuracy or omission in the information provided. The user expressly acknowledges and accepts that neither Services d'investissement FÉRIQUE, nor Gestion FÉRIQUE nor their employees or agents may be held liable for any damage that may have been caused directly or indirectly by the use of information contained in this site.

Please note: There may be management fees and expenses associated with investment in the Funds. Management expense ratios vary from one year to another. Please read the prospectus before investing. Mutual funds are not guaranteed, their values fluctuate frequently and past performance may not be repeated. FÉRIQUE Funds are distributed by National Bank Securities Inc., as Principal Distributor, and by Services d'investissement FÉRIQUE.

The FÉRIQUE RESP Calculator is licensed by EquiSoft, Inc.

The following sources were used in preparing this website: