RESP (EDUCATION PLAN)

It is a plan designed for parents to save money for their kid’s higher education. An ideal option for those who have no good income to make their kids participate in the modern economy. This investment plan involves parents as a subscriber of the account and the beneficiary who is going to use the money for post-secondary education. RESP educational plan allows you to pay whenever you want and there is no need to pay taxes on interests. These types of investment plans are usually offered through banks and other financial institutions.

You can start with RESP educational plans once you become a parent. You can start contributing earlier and keep it up at the later stage. There are three types of investment plans.

Individual: Under this plan, anyone can open an account, and anyone can contribute, be it a parent, grandparent, or any other family member.

Family: A family RESP plan allows you to invest money for the education of more than one beneficiary. Both the beneficiaries should be in a relation, either blood or adoption

Group: It is a plan type that works on some rules and restrictions. Multiple subscribers can save for multiple kids of a similar age.

When a subscriber invests in RESP, he or she may be eligible for a maximum of $7,200 from Canadian Government. The contribution is made through the Canada Education Savings Grant. Depending upon your income and contribution, the government contributes the amount every year.

These educational plans are a great way to secure your kid’s future. Take full advantage by investing money early and from the contributions made by the government. If you want to learn more about RESPs and its rules, then contact us today. We are here to make the process easy for you.