REGISTERED EDUCATION SAVINGS PLANS (RESPs)
A post secondary education is perhaps the greatest gift you can give a child. But all too often, it’s an expense that surprises parents. That’s why it’s important to plan ahead with a Registered Education Savings Plan.
RESP contributions are easy to set up and tax is deferred until it’s withdrawn, typically by your child at a much lower rate. Plus, your child could benefit from federal government contributions if he or she qualifies for an education grant.
- Your RESP can help fund most Canadian post-secondary programs
- No tax charged on income earned with your RESP until the funds are withdrawn
- Beneficiaries 17 or younger receive the Canada Education Savings Grant – equal to 20% of the annual contribution*
- Additional grants are also available for qualifying beneficiaries
At Northern Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). Click here to learn more.
*To a maximum of $500 per year per beneficiary and $7,200 over the lifetime of the RESP per beneficiary.