Registered Education Savings Plan

Post-secondary education is expensive and costs continue to rise.
Give your children a chance to achieve their educational goals with an RESP.

Connect with an Advisor

 

What is an RESP?

A Registered Education Savings Plan (RESP) is an investment account that you contribute to and the government deposits grant money into as well. Generally speaking, an RESP is the best and most efficient way to save for your child’s education. The government will match 20% of the first $2,500 contributed each year.

For example:

If you put $1,000 in an RESP throughout the year, the government will put in an additional $200. Therefore you’ll have a total of $1,200 invested in an RESP.

Some parts of RESPs can be confusing. A PenFinancial Advisor can help you make sense of everything, but here are a few key terms:

Beneficiary: The future post-secondary school student for whom money is being saved.

Planholder/Subscriber: The person who opened and owns the RESP.

Provider: The financial institution with which you set up the RESP.

Where can I invest my RESP?

An RESP can be invested in a variety of products, like savings accounts, GICs, Mutual Funds*, ETFs*, and Index-Linked GICs*. The choice is very personalized, an advisor can help you.

Is there a limit to how much I can invest?

You can contribute up to $50,000 in total per beneficiary. If you’re looking to maximize your growth, remember the government will only contribute 20% of the first $2,500 contributed each year.

What else should I know?

You can choose to set up an Individual Plan or Family Plan. The Family Plan is more flexible because it allows for money to be transferred between multiple beneficiaries. But if you’re confident you’ll only save for one beneficiary, then the Individual Plan is the plan you need.

If the beneficiary doesn't attend post-secondary you can withdraw the money at any time. There’s a catch though – you’ll have to repay all the government grant money, as well as interest earned on that grant money.

Try the Savings calculator
Your Guide to Understanding the RESP

Your Guide to Understanding the RESP

Get your hands on this useful brochure packed with valuable information about the Registered Education Savings Plan, in accordance with the latest legislation effective from April 2023. And don’t hesitate to reach out to a knowledgeable PenFinancial Advisor today to get answers to any questions you may have about an RESP.

Download the RESP brochure →

Deposit insurance coverage

At PenFinancial Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).

Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).

Learn more →

Note *Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc. Mutual funds are offered through Credential Asset Management Inc. Online brokerage services are offered through Qtrade Direct Investing, a division of Credential Qtrade Securities Inc. Qtrade and Qtrade Direct Investing are trade names and/or trademarks of Aviso Wealth Inc. and its subsidiaries. Qtrade Guided Portfolios is a trade name of Credential Qtrade Securities Inc. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.
Banking at PenFi is not more than just the money.

It’s about financial solutions that generate prosperity for you and your community.

Our Truly Local Commitment is the heart and soul of our philosophy, where we believe the prosperity of our Members and our community go hand in hand.  PenFinancial donates 10% of our pre-tax profits back into our communities, a living wage is our minimum wage, and we’re a Certified B Corporation—just a few ways we’re invested in you and your community.

Learn about our TLC