RESPs

An RESP is a great way to save for your child or grandchild’s education. RESPs are registered by the Government of Canada so that savings for education can grow tax-free until the person named in the RESP enrolls in studies after high school. Your child can use the money for full-time or part-time studies in an apprenticeship program, CEGEP, trade school, college or university.

The money in the RESP will be invested so it can grow and earn interest. You can choose from a variety of investment options for your RESP - see an Access CU Financial planner to help you choose.

Opening an RESP

Come into Access CU and we can open an RESP account for you. When you open an RESP account, the Government of Canada will help you save by adding money to your RESP through special savings incentives. These incentives are called the Canada Education Savings Grant and the Canada Learning Bond. They are only available if you open an RESP.

What do I need to open an RESP?

You'll need an Social Insurance Number for the child you are saving for.
To apply for a Social insurance number visit www.servicecanada.gc.ca or phone 1.800.O-Canada. There is no charge for this.

Who can get the Canada Education Savings Grant?

Every child up to age 17 is eligible to receive the Canada Education Savings Grant as long as the child is a Canadian resident and an RESP has been opened for the child.

How much is the grant?

On the first $500 you save in your child's RESP account, the Canada Education Savings Grant will give you:

  • up to $200, if your net family income is $37,178 or less
  • up to $150, if your net family income is between $37,178 and $74,357
  • up to $100, if your net family income is more than $74,357

When you save more than $500 annually, the Canada Education Savings Grant could add up to $400 on the next $2,000. Please note that the family income amounts are updated every year.

  • the maximum CESG per child per year is $500
  • the maximum lifetime amount of grant per child is $7,200

What happens if my child doesn't continue education after high school?
The RESP can stay open for up to 36 years. If your child does not continue education right after high school, the money can be used if your child returns to school later. If the money is not used 36 years after the RESP is opened, the amount you saved goes back to you, and the Canada Education Savings Grant may be used for a brother or sister’s education. If not, the grant will be returned to the Government of Canada. The Canada Learning Bond is returned to the Government of Canada.

Your money can also be withdrawn any time.

Canada Learning Bond

The Canada Learning Bond (CLB) is a Government of Canada bond to help modest income families start saving early for their child's education after high school.

Who can get the Canada Learning Bond?

You can get the Canada Learning Bond if:

  • your child was born after December 31, 2003; and
  • your monthly Canada Child Tax Benefit payment includes the National Child Benefit Supplement. This normally applies to families whose net family income is $37,178 or less. The family net income amounts are updated each year based on the rate of inflation. If your family qualifies, the Government of Canada will make a payment of $500, into your child's RESP. Extra payments of $100 a year will be made automatically for children up to age 15, as long as you continue to receive the National Child Benefit Supplement annually. The total CLB available for your child could amount to $2,000. You do not have to contribute any of your own money to get this bond!

Talk to a financial planner today about saving for your child or grandchild’s post-secondary education!