Registered education savings plan (RESP)

Pave a bright path for a child or grandchild by saving for their education early.

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Reviewed by Paul Thorne

What is an RESP?

An RESP is a tax-deferred account to help you save for a child’s, grandchild’s, or loved one’s post-secondary education.

Benefits of an RESP

Tax-deferred growth

All funds can grow tax-deferred. Grants and investment growth are taxed in the student’s hands only when withdrawn (generally for the beneficiary’s education).  As a student, they may owe little or no tax when RESP withdrawals are received.

Government contributions

The Canadian government will match 20% of your annual contributions, up to $500 per year, to a lifetime maximum of $7,200.  

Anyone can contribute to an RESP

Parents, grandparents, relatives and friends can contribute money into an RESP (up to a lifetime contribution of $50,000 per child).

How does an RESP work?

There are three main players when it comes to an RESP.

  1. The plan holder: the person who opens and owns the RESP. Also known as the subscriber.
  2. The beneficiary: the future student for whom the RESP exists, and
  3. The provider: the financial institution or other company that you set up an RESP with. Also known as the promoter.

You can use RESP funds to pay for the costs of full- or part-time education programs, such as:

  • Apprenticeships
  • Trade schools
  • Colleges
  • Universities

You can also use RESPs to pay for any items related to post-secondary education like:

  • Tuition
  • Textbooks
  • Rent
  • Transportation

Types of RESPs

Sun Life offers 2 types of RESPs: individual and family. In both types of RESP, the plan holder fully controls:

  • How the money is invested.
  • When, how much, and how often the beneficiary gets payments.

Individual RESPs

  • Anyone can open these plans – you (the plan holder) don't have to be the parent or even a close relative of the person you’re saving for (the beneficiary).
  • Beneficiaries must be under 21 when named to the plan.
  • You can keep an RESP open for at least 35 years, but it must be closed by Dec 31 of that year.

Family RESPs

  • You (the plan holder) can name 1 or more children as beneficiaries. However, they must be related to you by blood or adoption.
  • Only children, grandchildren, great-grandchildren, and adopted children of the subscriber are eligible.
  • If the eldest child doesn't go to post-secondary school, under certain circumstances you can transfer the grant money to other beneficiaries.
  • You must allocate contributions among the beneficiaries when you contribute, but don't have to split payments evenly among children.
  • Beneficiaries must be under the age of 21 when named to the RESP unless they were a beneficiary under another family RESP.

Learn more about family RESPs

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Video: What is an RESP?

Watch time: 1 minute 27 seconds

In this “Simply Put” video, learn the basics about RESPs – and how RESPs can help you save for a child’s or grandchild’s post-secondary education.

What is an RESP?

Simply put, a Registered Education Savings Plan, or RESP, is a type of savings account designed to help save for a child's education after high school.

People usually set them up for their kids or grandkids.

How much can you contribute to an RESP?

Parents, grandparents, relatives and friends can contribute money any time into an RESP.

There’s no annual contribution limit. But the most you can contribute is $50,000 in total, for each beneficiary.

What can an RESP be used for?

An RESP can help a student pay for a university, college or an apprenticeship.

What are the benefits of an RESP?

  • The Canadian government will match 20% of your annual contributions, up to $500 per year, to a lifetime maximum of $7,200. That's free money!
  • RESPs are tax-sheltered savings plans. This means that any investments within the plan grow tax-free until they’re withdrawn.

RESPs are tax-sheltered savings plans. This means that any investments within the plan grow tax-free until they’re withdrawn. RESPs combine savings with free money in the form of government grants. That's what makes them such a smart savings opportunity for Canadian families.

For more tips and tools, visit sunlife.ca.

Why open an RESP with Sun Life

Here are 3 benefits of opening an RESP with Sun Life.

Range of competitive products

We offer professionally managed investment products across a range of categories that can be used in a portfolio to save for education.

Save time

You might not have the time to build and maintain a portfolio. We can help.

Expert support

You have access to our team of advisors to help you determine which products suit your risk tolerance, investment objectives, and timeline goals.

RESP investment options at Sun Life

A Sun Life RESP can hold a mix of investments like mutual funds, segregated funds, GICs, and more.

Mutual funds

A mutual fund combines the money from many investors into a pool. These pools of money are invested in stocks, bonds, or other securities. Each pool is managed by a professional investment manager.

More on mutual funds

Guaranteed interest products

We offer two types: GICs and insurance GICs. Your principal and interest are guaranteed.

More on guaranteed interest products

Segregated funds

A segregated fund is an investment fund that combines the growth potential of a mutual fund with the estate planning benefits of a life insurance contract. You can buy a segregated fund contract that offers guarantees and some additional benefits which can help protect your investments.

More on segregated funds

RESP FAQs

There are many good reasons to open an RESP for a child*. Consider investing in one if you want:

  • Access to government grants or bonds to support a student’s schooling.
  • A tax-efficient account where relatives or family friends can celebrate special occasions (birthdays, etc.) by contributing directly to their RESP.
  • Time for your child to decide when they want to go to school. RESPs can be open for 35 years.

* Throughout this page the term “child” refers to child, grandchild, great-grandchild, or a loved one that is a beneficiary of the RESP.

These are the payments a beneficiary receives from any investment growth earned by an RESP, plus any Canada Education Savings Grant, provincial grants, or Canada Learning Bonds.

EAPs are limited to $8,000 during the first consecutive 13 weeks of enrollment for full-time studies and $4,000 for part-time studies. After that you can request any size payment.

You can withdraw as much of your own contributions to the plan as you wish at any time.

To withdraw anything other than your contributions from an RESP, you’ll have to provide proof that the beneficiary is enrolled in a qualifying post-secondary educational program, and you may have to provide receipts for expenses such as books and laptops.

Payments from the investment growth earned by an RESP, plus any Canada Education Savings Grant, provincial grants, or Canada Learning Bonds (the educational assistance payment) are limited to $8,000 during the first consecutive 13 weeks of enrollment for full-time students and $4,000 for part-time students; after that you can request any size payment, as long as the amount is justifiable.

Friends or loved ones can help a child save for education but they cannot directly contribute to an existing RESP.

They can help contribute by:

  1. Gifting money to the subscriber (typically the parent) who can make the deposit directly to the RESP or
  2. Opening a separate individual RESP for the beneficiary.

If you open a separate individual RESP for the beneficiary, it’s important to remember that:

  • the $50,000 lifetime contribution limit applies across all accounts for the same beneficiary.
  • You’ll need to communicate with other contributors to determine who will apply for the grants.

The CESG has certain contribution requirements for beneficiaries who are turning 16 or 17 years of age in the year you contribute. RESP beneficiaries turning age 16 or 17 in the year may be eligible to receive the CESG if at least one of the following conditions is met:

  • A minimum of $2,000 was contributed to (and not withdrawn from) the RESP of the beneficiary before the end of the calendar year they turned 15.
  • A minimum annual contribution of $100 was made to (and not withdrawn from) the RESP in any of the four years before the end of the calendar year the beneficiary turned 15.

Yes, you can open an RESP for yourself. However, if you are 18 years old or over, you may benefit from a TFSA over an RESP.

A Sun Life advisor can help you decide which type of account is best suited for your needs.

More RESP resources

RESP Calculator

Use this RESP calculator to find out how much you need to save to help cover your child(ren)'s post-secondary education costs.

Try the RESP Calculator

How to open an RESP

Read this step-by-step guide to learn what information you need to open an RESP for your child or grandchild.

Opening an RESP account

Transfer RESP To RRSP

Transferring funds from an RESP to RRSP? Learn more about eligibility, tax implications, and other considerations before you do.

How to transfer from RESP to RRSP

RESP Contributions

Learn more about RESP contribution rules and which government incentives and supplements are available with your RESP.

RESP grants and contributions

What if my child doesn’t go to school?

Don’t worry, there are plenty of options.

RESPs and non-school plans

RESPs for apprenticeship?

Think you can only use an RESP for full-time university or college? Think again.

Using RESPs for apprenticeships

This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply. Last updated : March 14, 2025.

Our advisors are ready to help you open an RESP and start saving for the future. They can also answer any questions you may have.

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