Registered education savings plan (RESP)
- Contribute up to $50,000 per child—tax-free
- Take advantage of government grants of up to 30%1
- You decide how much you want to invest and how
- This link will open in a new window.
A simple plan that pays off
Looking for an easy way to set money aside for your children’s or grandchildren’s education? The Desjardins RESP lets you tailor your contributions to your budget and life circumstances now and in the future. Decide what you want to invest in and how much, and watch your money grow tax-free.
Parents, grandparents and friends 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. There can be several subscribers for the same child beneficiary.
4 tips to get the most out of your RESP
- Start investing early and often.
- Set up automatic investments to make saving easy.
- Deposit the Canada Child Benefit and Quebec child assistance payments into your RESP so it’ll grow faster.
- Take advantage of the generous government grants that help to boost your RESP.
An RESP is one of the best ways to invest in your child’s future. You may qualify for government grants, and you can save tax-free for your child’s education. The government grants that are added to your contributions are equivalent to an impressive return of at least 30%.
2018 Canada Education Savings Grant
Up to $600 per year ($7,200 lifetime maximum)
| Net family income | Basic grant | Additional grant on the first $500 contributed in the year | Annual maximum |
|---|---|---|---|
| $46,605 and under | 20% | 20% | $600 |
| $46,606 to $93,208 | 20% | 10% | $550 |
| $93,209 and over | 20% | – | $500 |
2018 Québec education savings incentive
Up to $300 a year ($3,600 lifetime maximum)
| Net family income | Basic grant | Additional grant on the first $500 contributed in the year | Annual maximum |
|---|---|---|---|
| $43,055 and under | 10% | 10% | $300 |
| $43,056 to $86,105 | 10% | 5% | $275 |
| $86,106 and over | 10% | – | $250 |
Canada Learning Bond
The Canada Learning Bond is money that the Government of Canada gives some parents to help them start saving for their children’s post-secondary education. Eligible families receive an initial payment of $500 the first year an RESP is opened. Every year a family is eligible, $100 is added until the $2,000 maximum is reached.
Learn more about the Canada Learning Bond - This link will open in a new window.
When your child starts their post-secondary education, they’ll receive educational assistance payments from their RESP. Thanks to your foresight, your child will be able to focus on school instead of having to worry about debt!
All educational assistance payments are taxable.
If your child does not pursue post-secondary studies
- Name a replacement beneficiary.
- Transfer the RESP funds to your registered retirement savings plan (RRSP). Some conditions apply. If you decide to transfer the funds, you’ll need to pay back the grants.
Desjardins has a wide range of investment products to choose from.
- Funds and portfolios2
- Melodia Portfolios
- SocieTerra Portfolios
- Chorus II Portfolios
- Desjardins Funds
- IBrix Funds
- SocieTerra Funds
- Guaranteed investments (PDF, 1,2 Mo)
- Guaranteed investment certificate
- Daily-interest account
- Based on the net family income of the beneficiary’s parents, the first $500 in contributions may be topped up by a maximum of 60%.
- Desjardins Funds are offered by Desjardins Financial Services Firm Inc., a Desjardins Group company.
