RateBuddyInvesting guide EDUCATION SAVINGS

Compare Top RESP Platforms

  • Education savings
  • Benefits & flexibility

RateBuddy Investing Insight Last updated

Build an education plan with room for change.

An RESP is a long-term commitment, so the provider’s fees, grant support and flexibility deserve a close look. Confirm which benefits it can apply for and how the investment choices fit the years before education begins.

What to check before you choose

Also ask about withdrawals and changes to the beneficiary or study plans. A clear process now can make the account easier to manage later.

  • Benefit eligibility and provider participation vary; confirm the programs available to you.
  • Compare contribution commitments, transfer fees and conditions for changing the plan.
  • Ask what happens if the beneficiary delays education or follows a different path.

Further reading:Government of Canada — RESP benefits

Explore Investing Platforms for Your RESP

The platforms below all offer Registered Education Savings Plans (RESPs) and support federal government grants to help your savings grow.

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Qtrade Direct Investing

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National Bank of Canada
CIRO CIPF
National Bank of Canada
Online Broker

National Bank Direct Brokerage

RateBuddy 4.8/5
Google 4.6/5
Min. Deposit$0
FX Fee1.5%
Commissions & Fees
Stock Trading
Free
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Free
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$1.25
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Free Stock Trading Free ETF Buy Free ETF Sell CIRO Member Bank-Owned / Big 6
Questrade
CIRO CIPF
Questrade
Robo Advisor

Questwealth Portfolios

RateBuddy 4.8/5
Google 3.2/5
$1k
Min. Deposit
Active Mgmt
Strategy
0.12%
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Socially Responsible Investing
Key Highlights
Best for Beginners Cover Transfer Fees CIRO Member Automatic Rebalancing Socially Responsible Investing (SRI)
Ju
CIRO CIPF
Justwealth
Robo Advisor

Justwealth

RateBuddy 4.8/5
Hybrid Advice
$5k
Min. Deposit
Passive Indexing
Strategy
~0.20%
Avg. MER
Tax-Loss Harvesting Human Financial Advice
Key Highlights
CIRO Member U.S. Dollar (USD) Accounts Automatic Rebalancing Goal-Based Investing Tax-Loss Harvesting
Desjardins Group
CIRO CIPF
Desjardins Group
Online Broker

Desjardins Online Brokerage (Disnat)

RateBuddy 4.6/5
Google 4.6/5
Min. Deposit$1k
FX Fee1.5%
Commissions & Fees
Stock Trading
Free
ETF Trading
Free
Key Highlights
Free Stock Trading Free ETF Buy Free ETF Sell Cover Transfer Fees CIRO Member
CI Financial
CIPF
CI Financial
Robo Advisor

CI Direct Investing

RateBuddy 4.5/5
Google 4.6/5
Hybrid Advice
$100
Min. Deposit
Passive Indexing
Strategy
0.17% - 0.23% (Private 0.49%+)
Avg. MER
Human Financial Advice
Key Highlights
No FX Fee Automatic Rebalancing Goal-Based Investing Access to Human Advisors CIPF Protected
RBC Royal Bank
CIRO CIPF
RBC Royal Bank
Online Broker

RBC Direct Investing

RateBuddy 4.4/5
Google 2.9/5
Min. Deposit$0
FX Fee1.5%
Commissions & Fees
Stock Trading
$9.95
Options Trading
$1.25
Key Highlights
CIRO Member Bank-Owned / Big 6 U.S. Dollar (USD) Accounts Margin Trading CIPF Protected
RBC Royal Bank
RBC Royal Bank
Robo Advisor

RBC InvestEase

RateBuddy 4.4/5
Google 4.2/5
Hybrid Advice
$100
Min. Deposit
Passive Indexing
Strategy
0.11% - 0.23%
Avg. MER
Socially Responsible Investing Human Financial Advice
Key Highlights
Best for Beginners Cover Transfer Fees Bank-Owned / Big 6 Automatic Rebalancing Goal-Based Investing
TD Canada Trust
CIRO CIPF
TD Canada Trust
Online Broker

TD Direct Investing

RateBuddy 4.3/5
Google 4.9/5
Min. Deposit$0
FX Fee1.5%
Commissions & Fees
Stock Trading
$9.99
ETF Trading
Free
Options Trading
$1.25
Key Highlights
Free ETF Buy CIRO Member Bank-Owned / Big 6 U.S. Dollar (USD) Accounts Fractional Shares
Mo
CIRO CIPF
ModernAdvisor
Robo Advisor

ModernAdvisor

RateBuddy 4.0/5
$1k
Min. Deposit
Passive Indexing
Strategy
0.15% - 0.23%
Avg. MER
Socially Responsible Investing
Key Highlights
CIRO Member Automatic Rebalancing Socially Responsible Investing (SRI) CIPF Protected Mobile App (iOS & Android)
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RESP Growth & CESG Grant Calculator

Estimate how your contributions, the 20% CESG match, and investment growth can build an education fund.

How this works

  • Current balance = your initial deposit already in the RESP (no grant on this portion).
  • Monthly contribution is eligible for CESG 20% up to $2,500/yr (max $500/yr), lifetime grant cap $7,200 per child.
  • Est. annual return compounds monthly on your balance.
  • Time horizon is how long you’ll contribute/grow before withdrawals.

Tip: To hit the full $500 CESG each year, contribute about $2,500/year (~$208/month).

Your Inputs

$
Amount already in the RESP before new monthly contributions.
$
20% CESG applies on the first $2,500/year of contributions (max $500/yr; lifetime $7,200).
%
Compounded monthly for this estimate.
How long you plan to contribute/grow before withdrawals.

Projected Growth

Estimated Future Value
$0
Your Contributions
$0
Total CESG Grants
$0
Investment Growth
$0

Disclaimer: This tool is for general illustration. CESG rules (annual/lifetime limits, carryforward, age eligibility) and investment returns can vary. Provincial grants (e.g., Quebec, BC) are not included here.

Verify your situation with the Government of Canada or a qualified advisor before making decisions.

RESP Hub • grants-powered education savings

What is an RESP? And how do grants work?

The Registered Education Savings Plan (RESP) is Canada’s dedicated tool for funding a child’s post-secondary education. The “unfair advantage” is the potential for government grants that can boost contributions and accelerate compounding.

Grant boost
CESG can add “free” money
Tax-sheltered growth
Compounding without annual tax drag
Student-friendly taxation
Withdrawals often taxed to the student
The superpower

A “government grant” container

Core benefit

An RESP is a tax-sheltered wrapper for education savings. Its standout advantage is the potential for the Canada Education Savings Grant (CESG) — a government top-up on eligible contributions.

CESG match (commonly 20%)
In the standard case, the government adds 20% on eligible contributions up to annual limits (often described as “up to $500/year” when contributing $2,500). Exact eligibility and limits apply.
Tax-sheltered compounding
Contributions + grant money can grow inside the RESP without being taxed each year.
Withdrawals often taxed to the student
Growth and grants are typically taxed in the student’s hands — and many students have low income, which can mean low (or sometimes zero) tax owed depending on their situation.
Practical strategy
Many families aim to contribute enough to capture the grant each year (when eligible). That “free top-up” can be one of the best risk-free returns available.
What you hold inside

“Saving” vs “investing” inside an RESP

Decision guide

Your child’s age (timeline) should drive your risk level. Near graduation, safety matters more. With a long runway, growth may matter more.

Safety
1) RESP savings / GIC approach
Often used when school is close (e.g., ~age 16+)
  • Protects money you’ll need soon
  • Reduces risk of market drops near withdrawal time
  • Earns interest (usually lower return potential)
See Best RESP Savings Rates
Growth
2) RESP investing account
Often used when the child is young (long runway)
  • Invest contributions + grant money together
  • Use diversified ETFs to reduce single-stock risk
  • Fees matter — keep costs low for better compounding
Robo-Advisors Online Brokers
Educational content only — not financial advice. RESP/CESG rules and amounts depend on eligibility and can change.

Estimate your child’s future education savings and grants.

Try the RESP Calculator →

Ready to open an account? Compare RESP platforms.

Explore RESP Platforms →

Quick summary

A Registered Education Savings Plan (RESP) helps families save for a child’s post-secondary education. The government adds grant money.

  • Who it’s for: A child (beneficiary) with a SIN who lives in Canada; a plan holder (often a parent/guardian) opens the account.
  • Lifetime cap: $50,000 total contributions per beneficiary (no annual cap).
  • Grants: CESG (20% on contributions up to $2,500/year) and possibly the CLB (for eligible lower-income families).
  • Taxes: Contributions withdraw tax-free; grants & growth are taxed to the student as EAPs (usually low tax).
  • Deadlines: CESG room ends Dec 31 in the year the child turns 17 (watch the age 16–17 rule). CLB can pay up to age 20 if eligible.

Who can open an RESP

  • Beneficiary has a valid Social Insurance Number (SIN) and lives in Canada.
  • Plan holder opens the RESP with a financial institution (bank/credit union/investment firm).
  • Plan types: Individual (one child), Family (multiple related children), Group (scholarship plans—fees/rules vary).

Government money: CESG & CLB

These are the programs most families use. Providers verify eligibility using your tax info (with consent).

Canada Education Savings Grant (CESG)

Basic CESG: 20% on the first $2,500 contributed each year per child ($500/year), lifetime CESG max $7,200.

Additional CESG: For lower/middle-income families, an extra 10%–20% on the first $500 contributed each year.

What you contribute Government adds CESG this year
$2,500 (or more) 20% on first $2,500 $500 (basic CESG)
$500 (first $500) +10%–20% if eligible Up to $100 extra

Example (typical)

Contribute $2,500 → Government adds $500.

Set an auto-deposit of $208.34/month to hit $2,500/year.

Catch-up tip

You can receive up to $1,000 CESG in one year by catching up a prior year’s room.

Canada Learning Bond (CLB)

For eligible lower-income families. Pays $500 to start, then $100 in future eligible years, up to $2,000 total—no contribution required.

Example (no deposit)

You contribute $0. If eligible, CLB pays $500 now, then $100 for later eligible years up to $2,000 total.

Quick tip

Ask your provider to apply for both CESG and CLB when opening the plan.

Catch-up for past years (carry-forward)

  • Unused CESG room carries forward; you can receive up to $1,000 CESG in one year (current + one past year).
  • CLB can be paid for past eligible years after you open an RESP (no deposit required).
  • CESG eligibility ends after Dec 31 of the year the child turns 17—don’t leave catch-up too late.

Putting money in (contributions & limits)

  • No annual limit. Lifetime contribution cap is $50,000 per beneficiary.
  • To get the full basic CESG each year, contribute $2,500 (or $208.34/month).
  • Anyone can contribute with the plan holder’s consent (parents, grandparents, etc.).
  • For the age 16–17 rule, make sure to contribute at least $2,000 total or $100 in any 4 years before Dec 31 of the year they turn 15.

Taking money out (how payments work)

Two kinds of payments

  • EAPs: Grants + investment growth; paid to the student and taxable to them (often low tax bracket).
  • Contribution withdrawals: Your original deposits; paid back to you or the student tax-free.

Early in studies, EAPs are capped within the first 13 weeks; providers track the limits.

If school doesn’t happen

  • AIP (Accumulated Income Payment): Growth to you, taxable + additional tax. You may transfer up to $50,000 to your RRSP/PRPP if you have room (avoids the extra tax).
  • Unused CESG/CLB must be repaid to the government.
  • Close by the end of the 35th year after opening (40th for specified disability plans).

What counts as post-secondary education

  • Universities, colleges, CEGEPs, trade schools, apprenticeships, and many designated programs in Canada.
  • Some schools/programs outside Canada qualify; your provider can confirm designation.
  • Part-time programs may qualify; minimum length/hours apply.

How to open an RESP

  1. Get SINs for the child and plan holder.
  2. Choose a provider (bank/credit union/investment firm) and bring IDs/SINs.
  3. Ask them to apply for CESG & CLB. Set up monthly auto-deposits to capture the full CESG.

Tips that help

  • Automate $208.34/month to hit $2,500/year and get the full $500 CESG.
  • Open early—even with $0—so the CLB can start if eligible.
  • Don’t miss the age 16–17 rule; make small contributions before the end of the year they turn 15.
Try our RESP calculator
Estimate CESG/CLB and future value based on your contributions and timeline.

Provincial top-ups (quick glance)

Some provinces add extra one-time or annual amounts. Availability and rules can change.

  • BC: BC Training and Education Savings Grant (BCTESG) — one-time $1,200 (age/eligibility windows apply).
  • Quebec: Quebec Education Savings Incentive (QESI) — provincial grant with annual and lifetime caps.
  • Check your province for current program details.

RESP — Super Content FAQ

Tap a question to expand. Built for beginners, still useful for pros.