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Registered Education Savings Plan (RESP)

Earn free money while saving for your child's education.

?RESP? What does that mean to me?

It’s a savings account where the money deposited is allowed to grow tax free until it can be used for your child’s education. This includes:

  • apprenticeship programs
  • trade schools
  • colleges and/or universities

There are several RESP investment products, including GICs, mutual funds, stocks and bonds—and a Daily Interest Savings Account. We currently give children under the age of two $150 into a newly-opened RESP (that’s FREE MONEY), while also helping to set them up for potential government grant money (that’s even more FREE MONEY).

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Did you say FREE MONEY?

Yes we did! Twice. Get your free $150 with the Baby Bundle E-Newsletter

Sign up and receive an email with clear instructions on how to open your child’s RESP.

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How do I get free government grant money?

There are two federal government programs that provide free money for RESPs:

  1. Canada Education Savings Grant (CESG)

    Thanks to the Canadian Education Savings Grant (CESG), the federal government supplements RESP contributions, matching up to 20% of your annual contribution (to a maximum of $500 per beneficiary per calendar year.) The CESG goes directly into your RESP plan until the child turns 17.

    Depending on the family’s net household income, an additional CESG payment may be available on the first $500 contributed to an RESP annually.1

  2. Canada Learning Bond (CLB)1

    This is a bond of $500 for children born on or after January 1, 2004 to families entitled to the National Child Benefit Supplement. These children could also receive an additional $100 each year until they turn 15.

Here’s how ATB gets you these grants:

To set up an RESP and receive government grant money, your child needs a birth certificate and a Social Insurance Number(SIN). Then, an ATB Team Member will apply for all eligible grants for you.

RESP Rules & Info:

  • Current rules allow you to contribute a lifetime maximum of $50,000 per child. There is no annual contribution limit.
  • You can choose from individual plans (one beneficiary/child) or family plans (multiple beneficiaries/children)
  • Anyone can contribute to a child’s RESP, not just the parents of the child.
  • All money in the plan grows tax free until it’s withdrawn and when your child starts using the money for school, only the accumulated interest is taxable as income.
  • If your child decides not to attend postsecondary, your options include:
    • Designating an alternate beneficiary
    • Transferring the income earned (up to a maximum of $50,000) into an RRSP, provided there is unused contribution room in the RRSP
    • Withdrawing the funds
    • Donating the income earned to a post-secondary institution

Semi annual interest frequency is only available as simple interest and cannot be compounded.
1 Eligibility is determined by Canada Revenue Agency.