RESPs

Registered Education Savings Plan

What better investment than your child's or grandchild's education? Start today with a RESP.

You can contribute up to $50,000 per child throughout the lifetime of your RESP.  And because RESPs are registered plans, your savings grow tax-free while in the plan.  As an incentive the government provides a Canada Education Savings Grant of 20 percent on the $2,500 in annual contributions for children up to age 18.  The maximum annual grant is $500 per child, with a lifetime grant limit per child of $7,200.

As soon as your children begin using their RESP funds to go to school, the income becomes taxable in the child's hands.  In most cases, since the student has very little income, any income earned within the RESP is taxed at the student's lesser marginal rate.

Mainstreet provides access to several RESP products including mutual funds, as well as our own RESP term deposits administered by our trust services partner.