FAQ – Savings and investment – RESP

Grants are based on your RESP contributions and your net family income. An RESP beneficiary is guaranteed to receive grants worth at least:

• 30% of the RESP contributions in Quebec
• 20% of the RESP contributions in Ontario

You can’t contribute for a while? The grants will be carried forward. Contact an advisor for more details.

Canada Education Savings Grant:

• Up to $600 a year, with a maximum lifetime limit of $7,200 per child
• Is paid out automatically, every time you contribute
• Varies between 20% and 40% based on your net family income

Quebec Education Savings Incentive:

• Up to $300 a year, with a lifetime maximum of $3,600 per child
• Is paid out automatically once a year
• Varies between 10% and 20% based on your family income

Canada Learning Bond: External link. This link will open in a new window.

• Aims to encourage low-income families* to open an RESP
• An initial $500 is provided, no contribution on your behalf is required
• Pays out $100 annually, for every year that your child is eligible, for a lifetime maximum of $2,000 per child

We offer a range of investment funds and guaranteed investments tailored to meet your needs.

No matter your investment choice, check out our responsible investment (RI) options. It's a simple and effective way to fight for the environment.

Discover our RI offer

Desjardins Funds offers a wide range of investment options if you wish to invest in more specialized funds.

Discover our Desjardins Funds

To save risk-free, you can also choose our short- or long-term guaranteed investments.

Learn more about our guaranteed investments (PDF, 1.16 MB)

Here’s how you can get RESP investment advice:

• Go to your caisse.
  

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• Call 1-800-CAISSES (1-800-224-7737), between 8:00 a.m. and 11:00 p.m., 7 days a week.

You can contribute to an RESP until the 31st year after it was opened. However, the grants will only be paid out up until the beneficiary turns 17. You then have until the end of the 35th year after the RESP was opened to use the funds.

Bonusdollars can be redeemed to buy Desjardins financial services and products, including RESPs. Since Bonusdollars are like money, you can make them work for you in many ways. Contact your caisse to do so.

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Parents, grandparents and friends—anybody can open a Desjardins RESP. The person who opens the RESP is the subscriber and the designated child is the beneficiary. The child must have a social insurance number and be a Canadian resident.

• To open an RESP, you simply need to schedule an appointment with an advisor at your caisse. You will automatically be eligible for grants.
• Advisors are also available to provide support, if needed, before, during or after the acquisition of an RESP. Just call them.

You can withdraw from your RESP at any time.

However, there could be drawbacks to withdrawing funds if your child is not yet eligible for educational assistance payments. You could lose the government grants or you might even have to repay them, in part or in full.

You can withdraw the principal as soon as your child starts their post-secondary program. You can give it to them for their studies, transfer it to an RRSP or even keep it for yourself—it’s up to you. The money you invested is returned to you tax-free. As a post-secondary student, your child will receive educational assistance payments made up of the income earned on the investments and the government grants. Your child will have to pay taxes on this money.

Your child isn’t interested in post-secondary education?

You can name another beneficiary or transfer the funds to your own RRSP under certain conditions, in which case you’ll have to repay the grants.

No. RESP contributions cannot be deducted from the subscriber’s taxable income.

The investment earnings on those contributions, however, will grow tax-free.

The money you invested is returned to you tax-free. As a post-secondary student, your child will receive educational assistance payments (EAPs) made up of the income earned on the investments and the government grants. EAPs are considered part of your child’s taxable income, but since students tend to have low incomes, they generally end up paying little to no income tax.

Your RESP promoter has to apply for the grant on your behalf. The Canada Education Savings Grant (CESG) is based on your contributions and is deposited monthly into the account. Quebec residents are also eligible for the Québec education savings incentive (QESI), which is deposited yearly.

You can name a replacement beneficiary or, in certain circumstances, transfer the investment income from the RESP to your personal registered retirement savings plan (RRSP). However, the government grants may have to be paid back.

When your child starts their post-secondary education, they’ll receive educational assistance payments (EAPs) from their RESP. You choose when the beneficiary is paid, and how much. You can also decide to give them some or all of the contributions that you’ve made.

Once you start to withdraw money from the RESP, the student will pay tax only on the EAPs they receive. You won’t be taxed on the principal you originally invested, regardless of why you’re withdrawing it.

The maximum is $50,000 per beneficiary over the life of the plan. There is no minimum or maximum annual contribution, however.