Registered Education Savings Plan

A Registered Education Savings Plan (RESP) is a tax-sheltered plan to help you save for your child’s post-secondary education.

Why open a CIBC Investor’s Edge RESP?

Build your portfolio your way

Pay $6.95 per online equity trade

Pay no annual administration fees

Get access to government grants

Which plan is right for you?

Choose from 2 types of RESP to find the account that fits your needs.

Individual plan

An individual plan has one beneficiary. The subscriber doesn’t need to be a family member, but the primary caregiver must be listed on the application.

Family plan

Family members, usually parents or grandparents, can open a family plan for one or more beneficiaries and also add new beneficiaries in the future. Subscribers must be related to all beneficiaries.

Key Terms

Subscriber: A subscriber opens the RESP and contributes funds to the account. Spouses and common-law partners can be joint subscribers.

Beneficiary: The beneficiary is the person who will use plan funds to pay for their education. A beneficiary must be a Canadian resident and have a valid Social Insurance Number to receive government grants.

Primary Caregiver: This is the person primarily responsible for the care and upbringing of the beneficiary. There can be 2 primary caregivers if custody is joint.

RESP basics

Your investment grows tax-free until withdrawn
Account earnings and government grants withdrawn for educational expenses are taxed in the hands of the beneficiary
Maximum lifetime contribution limit of $50,000 per beneficiary
Beneficiaries may be eligible for government grants

Catching up on missed grants

If you contribute less than $2,500 in a year, unused portions of the $500 Canada Education Savings Grant will carry forward

Make additional contributions in a future year to receive those unused amounts, up to $1,000 in total grant money per year

Government grants

Grant	Amount	Eligibility
Basic Canada Education Savings Grants (CESG)	20% on the first $2,500 contributed to an RESP each year (maximum $500 per beneficiary) CESG can be carried forward up to a maximum of $1,000 per year Lifetime maximum of $7,200 per beneficiary	Available up until the end of the calendar year in which the beneficiary turns 17 Special rules apply at ages 16 and 17
Additional CESG	10% or 20% on the first $500 contributed to an RESP each year, depending on family income Paid in addition to Basic CESG	Eligibility for Additional CESG is based on family income For more information visit: Employment and Social Development Canada Opens in a new window.
Canada Learning Bond (CLB)	$500 when you open an RESP $100 in subsequent years for up to 15 years	Available to children born after December 31, 2003 Family must be receiving the National Child Benefit Supplement

Want to learn even more about RESPs?

Check out our handy references to dig deeper into the world of RESPs.

You gave them a great start, now let them learn the ropes with their own Investor’s Edge account

Once your child is 18, they can open their own Investor’s Edge account and benefit from free online trading. Our young investor education will guide them through the basics and give them the know-how they need to become savvy investors like you. (Warning: They’ll soon be giving you advice!)

Learn more about our student pricing.