For my children’s education
1. Contribute: You start saving early in your child’s registered education savings plan and take advantage of generous government grants
2. Accumulate: Your regular contributions and grants generate interest. Your RESP grows tax-free
3. Benefit: Your contributions are returned to you to fund your child’s education. Your child receives the grants the total interest from the RESP
RESP allows you to build up savings to put toward your child’s post-secondary education. This is the most precious gift you could offer your child: the possibility to pursue the career of their dreams
To encourage education savings, the Government of Canada and some provincial governments provide annual grants based on how much you contribute to your child’s RESP. Combined with your regular contributions, this generous government assistance deposited in your RESP gives a significant boost to your savings. Depending on your family income, you could be eligible for an additional grant. All your investments, grants & interest grow tax free until withdrawal.
Put success within your child’s reach
When your child starts post-secondary education, you recover the amounts you invested at the pace you choose. You don’t pay any taxes on the amounts returned to you. Your child receives the grants and interest generated on the total balance of the RESP account through Educational Assistance Payment (EAP). Since students generally have a lower tax rate, the tax bill to pay on EAP is often minimal.
If your child doesn’t pursue a post-secondary education, you can:
Designate another child in the family
Withdraw your original contributions tax-free
Transfer your accumulated investment income to your RRSP under certain conditions
Choosing to invest in RESP is choosing to guarantee your child’s success within reach. It`s also a guarantee, depending on your choice of investments, that the amounts deposited in the RESP will be full; available when your child needs them.
At BFSI, our qualified financial advisors can help you plan and choose the type of ERSP account that befits your investor’s profile and your goals for your child’s future.