RESPs

What is an RESP?

Registered Education Savings Plans are designed to assist with the cost of post secondary school. It is a government program that supplements contributions in the form of grants.

How it Works

The Government of Canada’s Canada Education Savings Grant (CESG) will supplement your contributions by 20% on the first $2,500 that you contribute per child per calendar year. That works out to a maximum benefit of $500 each year to a lifetime maximum of $7,200 per child.

In addition, in Saskatchewan, the Saskatchewan Advantage Grant For Education Savings (SAGES) will supplement your contributions by 10% up to a maximum contribution of $250 per child per year to a lifetime maximum of $4,500 per child.
Each year a child accumulates contribution room even if it isn’t used.

Withdrawals can be made from the account when the child attends an acknowledged post secondary institution.

Contributions are returned to parents tax free. Interest and Grant money is paid to the student and taxed at their marginal rate.

General RESP Rules

  • Your child will need a Social Insurance Number in order for you to set up and RESP for them  Click here to go to the Service Canada Website for instructions on applying for a SIN for your child

  • RESPs provide a tax shelter for contributions

  • There are two plan options for RESPs

    • A family plan is the most common of the plan types. It allows for any child to use any other child’s allotted contributions and grants. This type of plan eliminates the worry if one child should not attend post secondary schooling.

    • An individual plan is common for one child families


If your child chooses not to pursue post secondary education and no other child is available to use that child’s portion of the account, provisions have been made to allow you to return the grant to the government, take back your contributions and move the earnings of the contributions and grants to your or your spouse’s RRSP if there is contribution room.

Contributions can be made in lump sums or in monthly contributions for as little as $25 a month


Products Available for RESPs

Biggar & District Credit Union offers two different options:

Mutual funds*  This type of account can offer the advantages of diversification and professional management offered through Credential.

GICs Concentra Financial offers RESPs in the form of GICs. These RESPs provide security and peace of mind while returns are based on prevailing interest conditions.


To know which plan is most appropriate for you and your family please contact one of our representatives

Contact us for more information


*Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in the credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. Credential Securities. is a Member-CIPF. ®Credential is a registered mark owned by Credential Financial Inc. and used under license.
 

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