RESPs

Saving For a Child's Future Education

For many, saving for a child's education is a difficult task. On average, tuition, books and living expenses for a four-year term at University today can cost over $35,000. And with inflation and rising tuition fees, who knows what it could cost when your children are ready for post-secondary education? Fortunately the Government of Canada has designed a program to help you save the money. It's called a Registered Education Savings Plans, or RESP.

An RESP is a special account you open for a young friend or relative to save money for their future education. Your contributions aren't tax-deductible, but any income earned by money held within a RESP is tax-deferred. If a child in your life is destined for higher education, but you need help putting the money aside, call or visit your nearest Heritage Credit Union branch to find out more about RESPs and other savings options. We can help you determine how much money you'll need to save, the best way to save it, and what monthly contributions you can afford.

RESP Fact: Earn an extra $400 per year

The Canadian Government has recently made the RESP program more attractive with the introduction of the Canada Education Savings Grant. The federal government will contribute up to 20% on the first $2,000 contributed annually to each plan. This could add up to $400 to the RESP savings each year.

RESP Fact:  Single or Sibling Only Family Plans

The Enhanced Canada Education Savings Grant was introduced January 1, 2005 to provide lower income families more funds to save for beneficiary's post-secondary education.  This is an additional grant paid along with the CESG.  Also, the Canada Learning Bond is a payment made directly into an RESP held for an eligible beneficiary without the requirement to make a contribution to the RESP.

 

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