RESPs at a glance 

  • Grows tax-free savings
  • Enables you to take advantage of generous government grants
  • Maximum lifetime contribution limit of $50,000 per child/beneficiary for all their RESPs combined together
  • Funds upon withdrawal can be used for tuition, books, computers, transportation, or housing
  • If the child/beneficiary is making a withdrawal, the funds are taxed at their applicable income tax rate

 

One of the best ways to invest in your child’s future 

An RESP is a education savings plan that can help you save for your child’s university or college education. The savings within your RESP grow tax-free until withdrawal. 

It’s never too late to get started, and a contribution every month, no matter how small, can add up quickly. Saving for your child’s education through a Scotia iTRADE RESP can also be a family affair; grandparents, aunts, uncles and even friends can open an account, contribute to the same child and be the subscriber† to an RESP plan. 
 
With Scotia iTRADE, you have a range of RESP-eligible investments from which to choose. In fact, any investment that’s eligible for your RRSP is also eligible for an RESP – from equities to mutual funds, Exchange Traded Funds (ETFs) and GICs.

RESP offsets the cost of post-secondary Education

The cost of tuition has been rising steadily over the last ten years and continues to outpace inflation. Starting early with an RESP is a smart way to provide one of the greatest gifts to your child and protect your own nest egg. 

Scotia iTRADE offers individual and family plans 

Unlike an individual plan, which has only one beneficiary, a family plan lets you name more than one child as beneficiary. That way, if the primary beneficiary doesn’t pursue a post-secondary education, a sibling can take advantage of the funds. See below for the key differences between the two plans. 

Scotia iTRADE individual plan 

  • A single beneficiary
  • Beneficiary does not have to be related to the subscriber
  • Beneficiary can be of any age
  • Contributions to the plan must generally stop at the 31st year after the end of the year the RESP was opened 
  • Generally, the plan must be closed by the end of the 35th year after the year the plan was opened
  • Eligible beneficiaries can replace existing beneficiaries as long as they are not 21 years of age or older

Scotia iTRADE family plan

  • Multiple beneficiaries are allowed in this plan
  • Beneficiaries must be related by blood or adoption to the subscriber
  • Beneficiary must be less than 21 years of age, except in certain circumstances
  • Contributions must be made in respect of individual beneficiaries 
  • Contributions to the plan must stop at the earliest of the date that the beneficiary turns 31 years of age, or the 31st year after the end of the year the RESP was opened
  • Generally, the plan must be closed by the end of the 35th year after the year the plan was opened
  • Eligible beneficiaries can replace existing beneficiaries as long as they are not 21 years of age or older

U.S.-Friendly** Registered Education Savings Plans (RESPs) 

For a flat fee of $30 per calendar quarter per account, enrollment in a U.S.-Friendly RESP allows you to save for your child’s education, while taking advantage of trading U.S. denominated securities, without paying a retail foreign exchange spread** in your Canadian denominated registered account.

Don’t forget to take advantage of government grants 

In addition to growing your RESP savings tax-free, the Government of Canada offers you grants to help fund your child’s education:

For more information on these grants, please consult the Canada Revenue Agency website.

Helpful articles and videos

Registered Education Savings Plans (RESPs) 101

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Start saving for your child’s future and open a Scotia iTRADE RESP