Registered Education Savings Plan: A Powerful Savings Tool

1. Registered Education Savings Plan: A Powerful Savings Tool Saving for your child's higher education may seem daunting but it doesn't have to be. Thanks to the Registered Education Savings Plan. Read this post to find out how RESP is so powerful at helping you fund and secure your child's future in the sector of secondary studies. What Is an RESP? A registered education savings plan is a tax-sheltered account that helps you save funds for the higher education of your child. This may include any sort of examination, such as, university, college or any other apprenticeships and like. The biggest benefit of having this plan is the availability of government grants that help you grow your savings faster and make greater investment in future. Who Can Open an RESP? From parents to grandparents and every other relative or close friend can have access to this plan. However, it is mandatory for them to be permanent residents of Canada. That's all. What Types of RESPs are there? There are three kinds of RESPs: Individual RESP: This type of plan has one beneficiary and can be opened by anyone, including immediate family, relatives, and friends. Consider opening an individual RESP if you have one child or multiple children with large differences in age as separate accounts give you more time to make contributions for younger kids.

2. Family RESP: A family plan may be best if you’re saving for more than one child. This RESP allows you to name multiple beneficiaries, as long as they’re related to you or formally adopted by you. Funds don’t need to be distributed equally amongst the beneficiaries. Group RESP: Also known as a scholarship fund, a group RESP is sold by scholarship plan dealers. Everyone in the group names one beneficiary and contributes to the plan so their beneficiary can have a share of the pooled earnings when they go to university. Want to find the most reliable Education Savings Plan in Canada? Call the top-rated