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Andrew Galbraith
Darren Knott

Tel: 905-685-6277

80 King Street West
Suite 600
St. Catharines, ON
L2R 7G1

Saving for Education

An RESP is a tax deferral plan to help save for your child's post-secondary education. All of the growth in the plan compounds on a tax free basis until withdrawn.

The added benefit is the Canadian Education Savings Grant (CESG) – a federal grant program that deposits money directly into your child’s RESP based on your contributions.

The CESG program pays a grant of 20% of your annual contributions. For example, a $2,500 annual contribution will produce a $500 government grant - for a lifetime maximum grant availability of $7,200 per child.

Withdrawals from the plan are taxed in student’s hands and not the planholders'. Generally, this attracts little or no tax if withdrawn over a few years due to the student’s low tax rate.

Try the BMO Education Savings Calculator

It’s an easy way to see how much money you will need for your child's education.


Email us for free information on saving for education.