Invest In Your Child's Future

The ABCs of RESPs

As a parent, friend or family member you can start putting aside money now for a child's post-secondary education. You will be surprised at how quickly your contributions can grow with this special savings account.  A Registered Education Savings Plan is an investment vehicle that allows you to save for your child’s post-secondary education with an incentive of deferring taxes and potential government grants.

While the contributions are not tax-deductible, taxes on all income and growth in the plan are deferred until the child takes money from the plan for their post-secondary education. Since most students have a low income, little or no tax would be payable.

If the child chooses not to continue their education, the funds can be used for another qualified beneficiary. You can withdraw your contributions tax-free, and if certain conditions are met, transfer up to $50,000 of the RESP income into a RRSP if you or your joint subscriber spouse has contribution room available. If you simply withdraw the accumulated funds, the income earned in the RESP is subject to income tax at the subscriber's marginal tax rate. Also, an additional 20% tax is charged and the Government grant must be paid back.


  • A great way to save! An RESP is a tax-deferred investment vehicle that allows a subscriber  to save for a child's post-secondary education
  • A generous grant! Federal Government pays 20% of the contributed amount each year to a maximum of $500 for each eligible child registered under this program to a lifetime maximum of $7,200 per child
  • Tax sheltered! Any money earned in the RESP accumulates tax-free until it is withdrawn
  • It's affordable! Minimum initial investment is small and subsequent contributions with a pre-authorized debit can be made monthly
  • No administration fees!
  • Lots of options! Your RESP investment can be in the form of daily interest savings, term deposits, and mutual funds* through Credential Asset Management Inc.

Talk to your Member Service Officer or a Credential® Investment Professional at your branch about opening an RESP. They'll provide you with all the advice you need to know and help you every step of the way.

 * Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances and mutual funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that issues deposits in Credit Unions. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ®Credential is a registered mark owned by Aviso Wealth Inc. and is used under licence


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