Registered Education Savings Plan (RESP)
Types of plans:
You can choose from three types of plans:
Individual plan. For a single beneficiary, who does not have to be a
blood relative of the subscriber.
Family plan. For multiple
beneficiaries, who are connected by
blood or adoption to the subscriber. A
government grant paid into an RESP
may be shared among all the
beneficiaries.
Group plan. Your savings are pooled
with other people. The money your
child receives is based on the amount
of money in the pool and the total
number of students of the same age
who are in school that year.
Photo Credit: VisualHunt.com
Take Note!
Some banks or credit unions will charge a fee to open an RESP.
Ask first!
RESP Tips
Decide on the type of plan. Choose an individual, family or group plan—
whichever suits you best. Ask questions - each plan has its pros and
cons. Be informed!
Ask about fees and restrictions. Some RESP providers charge service
fees; others do not. Ask the institution to explain any fees, limits, penalties
or promises to make regular payments. Also ask about investment and
withdrawal options.
Make sure you understand all the terms and conditions. Carefully read
the information you are given. If you don’t understand something, don’t be
afraid to ask about it. It’s your money!
Shop around to find the plan that best suits your needs.
Start early to maximize the benefits.
18