Your child’s education may be one of the biggest expenses you will incur. RESP’s are a great way to save for your child’s or grandchild’s education. An RESP is a government-approved registered savings plan which provides for the future post-secondary education of a child, or beneficiary. If you open up a TCU RESP when your child is young, you will allow more time for the investment to grow. You can also take advantage of annual Federal Government grants (if applicable).
- Set up an individual plan for one child (beneficiary) or a family plan for multiple beneficiaries.
- The government may contribute 20% annually on the first $2500 deposited into an RESP (maximum $500 annually per beneficiary; lifetime maximum of $7200 per beneficiary). Additional Canada Education Savings Grant may apply based on net family income.
- Contributions to this type of plan are not tax deductible, but income and grants that build up in the plan are sheltered from taxes until they are withdrawn to pay for the beneficiary’s eligible post-secondary education.
- Flexible options - your RESP can be in the form of a variable savings account or GIC’s
Deposits in registered savings plans are fully insured. (Other Canadian dollar deposits insured up to $100,000)
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