How does an RESP work?

How does an RESP work?

So, you heard about this thing called an RESP and sort of understand what it is, but how do you set one up and where do you take it from there? Fortunately, the process is pretty straightforward and this website (and our RESP experts) are here to help. Let’s take a look at the key parts of the process.

1. Open an RESP
2. Watch your RESP grow
3. Use your RESP
STAGE ONE

Open an RESP

Opening an RESP is easy. As long as you and the child each have a Social Insurance Number (S.I.N.), the next steps are simple:

Consider what you can afford for your initial and ongoing contributions (our RESP calculator can come in handy). No matter how much you can afford, or even if you aren’t sure what you can afford, our RESP experts can help create a plan that is right for you and your family.

Our online application will get you started in about 5 minutes. At the end of this application you will schedule a friendly consultation with an RESP expert to complete the setup process.

STAGE TWO

Watch your RESPs grow

It’s not quite magic, but the growth you can experience in an RESP can be quite amazing, especially when starting early. Over the course of your savings journey, you can benefit from government grants, investment gains, and compound growth.

STAGE THREE

Use your RESP

When the time comes to use your RESP savings for its intended purpose (your child’s post-secondary education) you may wish to withdraw funds from the RESP to pay tuition, room and board, school supplies, and other student expenses.

It pays to know how to withdraw strategically from your RESP, so that you can withdraw funds effortlessly and minimize tax on the income that grew in your RESP over the years. To help you with this process, we have created a dedicated section called Withdrawing from your RESP which dives into all the particulars of the withdrawal process, timing, taxation, and more.

Knowledge is power.

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