Registered Education Savings Plans (RESPs) in Ontario
A Smart Way to Save for Your Child's Future
An RESP is a government-registered savings account that allows your investments to grow tax-deferred while providing access to valuable government grants.
RESPs
Post-secondary education is one of the most valuable investments you can make in your child's future. Whether they dream of attending college, university, a trade school, or an apprenticeship program, a Registered Education Savings Plan (RESP) can help make those goals more affordable.
What is an RESP?
A Registered Education Savings Plan (RESP) is a long-term education savings account registered with the Government of Canada.
Parents, grandparents, relatives, or family friends can contribute money to an RESP on behalf of a child (known as the beneficiary). Contributions are not tax-deductible, but investment earnings grow tax-free while they remain in the account.
RESP savings can be used for:
University
College
Apprenticeship programs
Trade schools
Many other eligible post-secondary institutions in Canada and internationally
Why Open an RESP?
Opening an RESP offers several important advantages:
Government Grants
The Government of Canada helps your savings grow through the Canada Education Savings Grant (CESG).
The Basic CESG provides:
20% on the first $2,500 contributed each year
Up to $500 annually
Lifetime maximum of $7,200 per child
Some lower- and middle-income families may qualify for additional CESG amounts.
Tax-Deferred Growth
Your investments can grow without paying tax on interest, dividends, or capital gains while the money remains inside the RESP.
When withdrawn for education:
Original contributions are returned tax-free.
Government grants and investment earnings are generally taxed in the student's hands, who often pays little or no tax because of their lower income.
Flexible Investment Options
Depending on your financial institution, you may invest in:
Guaranteed Investment Certificates (GICs)
Mutual Funds
Exchange-Traded Funds (ETFs)
Stocks
Bonds
High-interest savings accounts
More About RESPs
Who Can Open an RESP?
An RESP can be opened by:
Parents
Grandparents
Guardians
Other relatives
Friends
Even an adult saving for their own education
The beneficiary must have a valid Social Insurance Number (SIN).
Types of RESPs
Individual Plan
Best for:
One child
Any beneficiary (related or unrelated)
Family Plan
Ideal for families with multiple children.
Benefits include:
One account for multiple children
Contributions can be shared among eligible beneficiaries
Great flexibility if one child needs more educational funding than another
Beneficiaries must be related by blood or adoption to the subscriber.
Your Questions, Answered
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There is:
No annual contribution limit
Lifetime contribution limit of $50,000 per beneficiary
While you can contribute more than $2,500 in a year, government grants are generally only paid on eligible annual contributions, subject to CESG rules and available carry-forward room.
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Yes.
If you didn't contribute in previous years, unused CESG room carries forward.
You can generally receive up to $1,000 of CESG in a single year by catching up on one previous year's unused grant room.
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Some families with lower incomes may qualify for the Canada Learning Bond (CLB).
Benefits include:
No personal contributions required
Up to $2,000 available for eligible children
Simply opening an RESP and applying may qualify the child for the benefit.
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RESP funds may be used after the student enrolls in an eligible post-secondary program.
Funds can help cover:
Tuition
Books
Supplies
Housing
Transportation
Equipment
Other education-related expenses
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You still have options.
Depending on your situation:
Your original contributions can be withdrawn tax-free.
Another eligible child may become the beneficiary.
In some cases, investment earnings may be transferred to your RRSP if eligibility requirements are met.
Government grants that are not used must generally be returned to the government.
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Opening an RESP is straightforward:
Obtain a Social Insurance Number (SIN) for the beneficiary.
Choose a participating RESP provider.
Open the account.
Apply for available government grants and benefits.
Begin making contributions that fit your budget.
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No. RESP funds can also be used for eligible colleges, trade schools, apprenticeship programs, and many other post-secondary institutions.
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Yes. Grandparents, relatives, and other adults can open an RESP if they meet the requirements.
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Yes, provided the RESP remains open and contribution limits have not been reached. Eligibility for CESG depends on age and contribution rules.
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There is no annual contribution limit, but government grant eligibility is subject to annual and lifetime CESG limits.
RESP Tips for Ontario Families
Start saving as early as possible to maximize government grants.
Even small monthly contributions can add up over time.
Review your investments regularly.
Take advantage of available grant programs.
Consider setting up automatic monthly contributions to build savings consistently.
Helpful Government Resources
For more information, visit these official Government of Canada resources:
Get started today.
Start Investing in Your Child's Future
An RESP is one of the most effective ways for Canadian families to save for education while taking advantage of government incentives. By starting early and contributing consistently, you can help reduce future education costs and provide greater financial flexibility when your child is ready to pursue their dreams.