How does the RESP work?
An 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. Canadian Savings Education Grant is 20% on annual contribution with a maximum of $7,200 per child.
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 and interest grow tax-free until withdrawal.