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Registered Education Savings Plans (RESPs)



The cost for higher learning is growing every year. Presently, it costs up to $14,500 annually for a post-secondary education (due to higher tuition fees, books, room and board, and personal expenses). Within 15 years, the cost of a four-year post-secondary program could go as high as $95,000.

Given the ever-rising costs of college and university, a Registered Education Savings Plan (RESP) is a must for people who want to save for the future education of their children, just like an RRSP is a must for ensuring an enjoyable lifestyle in retirement.

Here are the benefits:

  • RESP is a tax-effective way to save for a child's post-secondary education (capital gains, interest and dividends accumulate tax-free).

  • No restrictions on foreign content limits and qualified investments for RESP purposes.

  • As of 2007, there is no annual limit for contribution to RESPs.

  • RESP holders get a Canada Education Savings Grant (CESG) of up to $500 ($1,000 if catching up) per year for each child under the age 18. That's 20% for the first $2,500 or $5,000 contribution.

  • The maximum lifetime total for RESP contributions is $50,000 per child (excess contributions to an RESP are subject to a 1% per month penalty).

  • The maximum lifetime total of CESGs from the federal government is $7,200 (for a maximum lifetime total of $57,200 in RESP contributions and CESGs per child).

  • Investment Renaissance is offering the Quebec education savings incentive (QESI) to eligible Registered Education Savings Plan (RESP) accounts. The QESI is a tax measure that encourages Quebec families to start saving early for their children's education.

The choice to invest in an individual or family plan
A Renaissance Investments RESP is an ideal way to accumulate funds for a child's education, offering a wide range of investment opportunities. When you invest in a Renaissance Investments RESP, you can choose from a complete family of mutual funds that provide the most attractive worldwide investment opportunities — with just a minimum of a $5000 investment.

For more information on RESPs, please visit the Canada Revenue Agency (CRA) website.