Bayview Credit Union – NB

Education Planning

Registered Education Savings Plan (RESP)

A post-secondary education is critical in an increasingly competitive job market. With the costs of higher education ever increasing, planning now for your family is essential, and a Registered Education Savings Plan can help!

A Registered Education Savings Plan (RESP) is a government approved plan for the purpose of providing post-secondary education funding for a beneficiary of your choosing. Income earned within the RESP is tax-sheltered until it is withdrawn, and the federal government partners with families by providing grant money deposits to your RESP through the Canada Education Savings Grant (CESG). If payments are withdrawn by the beneficiary, he or she will usually have a lower marginal tax rate. Education Assistance Payments may be drawn from the RESP (taxable to the beneficiary) to cover expenses associated with the pursuit of higher education in a qualified program such as:

Investing in an RESP will give you and your family members more financial freedom when making the choices that will affect their futures. By starting now you can grow your education funds by making affordable, convenient monthly deposits.

Contribution Limits:


The Named Beneficiary:

Investment Options:

Canada Education Savings Grant (CESG)

The federal government’s CESG program allows eligible RESP beneficiaries to receive grant monies based on the annual contributions paid into the plan. The government will contribute 20% annually on the first $2,500 ($500) deposited into a Bayview RESP for children to the end of the year in which a child reaches age 17 (some restrictions apply for beneficiaries aged 16 and 17). All children under the age of 18 who are resident in Canada automatically accumulate CESG contribution room.

Contribution Limits:

In the event that an RESP beneficiary does not pursue post-secondary education and the plan is to be collapsed, any unused CESG deposits would be returned to the government.