How does
the RESP work?

An RESP is to education what an RRSP is to retirement: it 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.

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How can I accumulate more?

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 and interest grow tax free until withdrawal.

Grants offered by the federal government
Grants offered by the federal government Canada Education Savings Grant (CESG) Canada Learning Bond (CLB)
Annual grant (% of contributions) 20% Limit of $2,000 per child for eligible families
Annual limit (per child) $500
Lifetime maximum (per child) $7,200
Additional grant (% of contributions) 10% or 20% of the first $500 invested each year
Grants offered by provincial governments
Grants offered by provincial governments Quebec Education Savings Incentive (QESI) Saskatchewan Advantage Grant for Education Savings (SAGES)* British Columbia Training and Education Savings Grant (BCTESG)
Annual grant (% of contributions) 10% 10% Single payment of $1,200 (Lifetime maximum)
Annual limit (per child) $250 $250
Lifetime maximum (per child) $3,600 $4,500
Additional grant (% of contributions) 10% or 20% of the first $500 invested each year -
*SAGES payments are temporarily suspended effective January 1, 2018.

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 EAPs 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 an RESP at iA Financial Group is choosing security. It’s also a guarantee, depending on your choice of investments, that the amounts deposited in the RESP will be fully available when your child needs them.

Choose what’s best for your child’s future: invest in an RESP.

RESP loan

To receive the maximum in government grants

Choose an RESP loan and grow your money without
changing your budget.

To learn more about the RESP loan