RESP

In 1998, the federal government introduced the Canada Education Savings Grant (CESG), a grant paid into an RESP.

A Registered Education Savings Plan (RESP) provides for the future post-secondary education of a beneficiary.

A Subscriber or joint Subscriber (must be the spouse or common-law partner of the Subscriber) make deposits into the RESP on behalf of a Beneficiary for the use by the Beneficiary for post-secondary education.

A Subscriber may also be an agency, institution, or department responsible for the care of a Beneficiary.

The CESG is currently 20% on the first $2,500 in annual contributions, up to a maximum of $500 annually per Beneficiary.