Education savings
RESP basics: whose money is in the plan?
Understand the people, contributions, benefits and growth inside a Canadian education savings plan.
The key idea
A Registered Education Savings Plan (RESP) is a Canadian account for education after high school. Personal contributions, government benefits and investment growth are different parts of the balance, with different withdrawal rules.
Three roles to recognize
- The subscriber opens the plan and directs it under the contract. This may be a parent, relative or another adult.
- The beneficiary is the person whose eligible education the plan supports. Adults can also open a plan for themselves.
- The promoter is the provider administering the RESP and applying for benefits.
Eligible education can include qualifying college, university, trade and apprenticeship programmes. Family circumstances and plan types differ; an RESP is not restricted to a two-parent household. ESDC: how RESPs work
Keep the parts of the balance separate
Contributions are money paid in, not a tax deduction. CESG is a contribution-linked grant; the Canada Learning Bond (CLB) is a separate benefit that does not require personal contributions. Investment growth can be positive or negative, depending on the holdings. A market balance alone cannot establish past contributions or unused grant room. ESDC: RESP benefit amounts and eligibility
The lifetime contribution ceiling is $50,000 per beneficiary across all RESPs, not per account; grants and growth are not personal contributions. Coordinate with other subscribers before paying in. ESDC: managing an RESP
Provider terms matter before you sign
Compare fees, available investments, contribution commitments, withdrawal conditions and whether the provider applies for the benefits relevant to you. Some plans require scheduled contributions. Ask what happens if you pause, transfer or change plans. An account that is costly or inflexible may not fit irregular income. ESDC: managing an RESP
Taking money out is a separate decision
An Educational Assistance Payment (EAP) combines benefits and accumulated earnings and is generally taxable to the student. Contributions can generally be returned tax-free, but withdrawing them can trigger grant repayment in some circumstances. Ask the promoter for the type of payment, programme eligibility, required enrolment evidence and tax slip. If plans change, investigate options before closing the RESP. ESDC: paying for education from an RESP
See it in practice
A balance is not a contribution history
| Component | CAD |
|---|---|
| Personal contribution | $1,000 |
| Basic CESG under assumed eligibility | $200 |
| Invented investment gain after deposit | $30 |
| Ending account balance | $1,230 |
$1,000 + $200 + $30 = $1,230. Only $1,000 is a personal contribution. The $200 assumes sufficient basic CESG room and lifetime headroom; additional CESG, CLB and provincial benefits are excluded. The $30 is an invented gain, not a return forecast or payment-timing promise.
Check your understanding
Do you need to contribute to receive every RESP benefit?
No. Eligible Canada Learning Bond recipients do not need personal RESP contributions. CESG does require eligible contributions.
A useful next step
Ask a provider about fees, flexibility and benefit applications. If contributing is not affordable, start with Canada Learning Bond eligibility and steps. The RESP Planner illustrates basic CESG and growth only; additional CESG, CLB and provincial benefits are excluded.
Inspect the sources
Primary references checked September 18, 2026. A source check is not professional financial or legal review.
- ESDC: how RESPs workCurrent at check · Federal
- ESDC: RESP benefit amounts and eligibilityCESG table 2026; CLB July 2026–June 2027 · Federal; BC/Quebec programmes identified separately
- ESDC: managing an RESPCurrent at check · Federal
- ESDC: paying for education from an RESPCurrent at check · Federal; Quebec tax distinctions on some payments