Benefits of an RESP

There are many benefits to saving for your child's post-secondary education with a CIBC Registered Education Savings Plan (RESP).

The money is there when you need it

We make it easy to start early and contribute regularly so that you'll have the funds you need, when you need them, for your child's education.

Government contributions

The federal government may add to your RESP contributions (up to a maximum of $500 per year, per child) with the Canada Education Savings Grant (CESG). The CESG is payable until the end of the calendar year a child turns 17, and the maximum lifetime CESG payment is $7,200.

Tax-sheltered Growth

Although contributions are not tax-deductible, all investment income generated in the RESP is tax-sheltered as long as it remains in the plan.

Flexibility

You can decide how much money should be withdrawn and when it should be withdrawn. The withdrawals can be used for a variety of education costs, including tuition, books and living expenses.

Tax savings

When money is withdrawn and used to pay for the child's post-secondary education, the plan earnings and government contributions are taxed in the child's hands. As a student, the child may pay little or no taxes on the money.

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.