Registered Education Savings Plan (RESP)
Save for your child’s post-secondary education in a tax-sheltered plan.
CIBC Investor’s Edge
Jan. 20, 2026
5-minute read
Many young Canadians dream of going to college, university, or learning a trade, but paying for school can be tough. With costs rising, it’s easy to worry about student debt before starting a career or buying a first home. That’s why the Government of Canada created the Registered Education Savings Plan (RESP) — to help parents save for their children’s future education. In this article, we’ll walk you through the most common RESP questions and share a simple glossary so you can feel confident about your family’s education savings.
The RESP is an account that lets you save and invest tax-free for your children's education. You contribute money to the plan and the Government of Canada may also contribute money. You can then invest the money in stocks, exchange-traded funds, mutual funds or other investments, with the aim of growing your money to support your children’s education or training.
What are the tax advantages of an RESP?
One of the big benefits of an RESP is that your investments within the plan grow tax-free. While you won’t get a tax deduction for contributions to an RESP, investment earnings — including capital gains, dividends and interest — are not taxed while in the RESP. This allows your investments to grow at a higher rate than if they were taxed. Plus there can be tax advantages in how your child receives money from the RESP, which we discuss later.
What investments can I hold in an RESP?
RESPs offer a wide range of investment choices, including stocks, exchange-traded funds and mutual funds. With many products to choose from, it’s important to understand and incorporate your risk tolerance, time horizon and investment objectives when making any investment choices.
When should I open an RESP?
Aim to start saving for your child’s education as soon as you can. An early start means both your contributions and any amounts you may receive from the Government of Canada have more time to grow tax-free. While you can make catch-up contributions and may still receive full grants later, the earlier you get this money and invest it, the longer it has to grow.
How much can I contribute to an RESP? And how much will the government add?
There’s no annual limit on how much you can contribute to an RESP, although there is a lifetime maximum of $50,000 per beneficiary. The Canada Education Saving Grant (CESG) is calculated as 20% on the first $2,500 of contributions for that year, which would yield a grant of up to $500.
If you contribute less than $2,500 in a year, you can make additional contributions in a future year to receive unclaimed grants. Up to $1,000 in total grant money can be paid into an RESP in a year.
So far, we’ve discussed the basic level of the Canada Education Savings Grant. Depending on family income, the government also offers an additional level of the Canada Education Savings Grant, plus the Canada Learning Bond. The following table summarizes the details of these government contributions.
| Grant |
Amount |
Eligibility |
| Basic Canada Education Savings Grant (CESG) |
- 20% on the first $2,500 contributed to an RESP, yielding a grant of up to $500 in a year per beneficiary
- CESG entitlements can be carried forward, and up to $1,000 of CESGs per beneficiary may be received in a year
- There’s a lifetime maximum of $7,200 in CESGs per beneficiary
|
- Available until the end of the calendar year in which the beneficiary turns 17
- CESGs may be restricted for beneficiaries ages 16 and 17, if certain minimum RESP contributions were not previously made
|
| Additional CESG |
- 10% or 20% on the first $500 contributed to an RESP for a year, depending on family income
- Paid in addition to basic CESG
|
|
| Canada Learning Bond (CLB) |
- $500 when you open an RESP
- $100 in subsequent years for up to 15 years
|
- Available for beneficiaries who are born after 2003 and under 21 years old, when family income is below certain thresholds
|
How do I withdraw money from the RESP?
The following resources summarize ways to withdraw money from an RESP.
Registered plans such as RESPs have their own language, which can sound a bit confusing at first. Here are some of the key terms you need to know.
Subscriber
A subscriber is the person who opens the RESP and is usually the one who contributes funds to the plan. Spouses and common-law partners can be joint subscribers.
Beneficiary
The beneficiary is the person — usually a child — who will benefit from the funds to pay for their education. A beneficiary must be a Canadian resident when the plan is opened and have a valid Social Insurance Number. To receive government grants and bonds, the beneficiary must be a Canadian resident and 17 years of age or younger, but plans may be opened for beneficiaries of any age. The RESP can remain open until the end of the 35th year — or the 40th year when the beneficiary has a qualifying disability — after the plan was opened.
Primary caregiver
This is the person or organization primarily responsible for the care and education of the beneficiary.
Individual plan
An individual plan has one beneficiary. The subscriber doesn’t need to be related to the beneficiary, 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.
