Quick Answer
You may be able to switch from a group RESP to an individual or family RESP, but the rules depend on your group plan contract. Before switching, ask about fees, transfer deadlines, government grants, investment income, group plan benefits, and whether you are transferring, cancelling, or withdrawing funds.
Key Takeaways
- Switching from a group RESP may be possible, but plan rules vary by provider and contract.
- Group RESPs can have scheduled contributions, pooled earnings, and unique fees.
- Individual and family RESPs usually offer more contribution flexibility.
- Leaving a group RESP may affect fees, earnings, and group plan benefits.
- Government grants need to be handled carefully during a transfer.
- Families should ask whether they are transferring, cancelling, or withdrawing before making any changes.
If you have a group RESP and are wondering whether you can move to an individual or family plan, you are not alone. At Embark, we hear this question from families all the time. Many families reach a point where their group plan no longer fits how they want to save. The contribution schedule may feel too rigid. The fees may be unclear. Or they simply want more control over how their money is invested and withdrawn.
Switching may be possible. But before you make any changes, there are important questions to ask and details to review. This guide walks you through what to know before you switch from a group RESP to an individual or family RESP.
Can you switch from a group RESP to an individual RESP?
Often, yes — but it is not always simple. Some group RESP providers allow you to transfer to an individual or family plan. Others have specific rules, deadlines, or fees that affect how a transfer works.
The most important thing to understand is that transferring is not the same as cancelling your group RESP or withdrawing your money. Each of these actions has different consequences for your savings, fees, and government grants. Before you do anything, ask your group RESP provider exactly what your options are and what your plan contract says.
What is a group RESP?
A group RESP — sometimes called a scholarship plan or pooled RESP — pools contributions from many families together. The plan provider manages the investments and shares earnings among group members, based on the plan’s rules.
Group plans can require you to contribute a fixed amount at set times, for the length of the contract. They also tend to have higher fees and more restrictive payout rules than individual or family plans. Each group RESP has its own contract, so the exact terms vary by provider.
According to the Government of Canada, interest earned on subscriber savings can be shared within a group plan, while earnings on government contributions cannot be shared — they go directly to the beneficiary.
Group RESP vs individual RESP vs family RESP
Here is a quick look at how the three plan types compare:
| Feature | Group RESP | Individual RESP | Family RESP |
|---|---|---|---|
| Who it covers | One beneficiary | One beneficiary | One or more related beneficiaries |
| Contributions | Often set by contract schedule | Flexible, up to lifetime limit | Flexible, up to lifetime limit |
| Investments | Provider-managed, pooled with group | Subscriber controls | Subscriber controls |
| Fees | Often higher | Generally lower | Generally lower |
| Payout rules | Plan-specific and contract-based | Flexible | Flexible |
| Best for | Families wanting a structured schedule | Families with one child who want flexibility | Families with more than one child |
Individual and family RESPs generally allow the subscriber to decide when and how much to contribute, up to the lifetime limit. This flexibility is one of the main reasons families consider making a switch.
Embark Customer Testimonial
Amy
★★★★★
“I had a wonderful experience opening an RESP for my now 2nd child to have a savings with Embark! Thank you so much… for contacting me to explain the family plan as I was expecting; following up when the child was born; and making the set up easy to understand and simple to complete! So happy to have this plan available that works to support our family plans for the future.”
Why do families consider leaving a group RESP?
- The contribution schedule no longer fits the family budget
- Fees feel unclear or higher than expected
- There is limited control over how the money is invested
- The child’s education path is still uncertain
- The family wants more flexible contribution amounts
- The family wants easier online access and clearer account tracking
- Concern about what happens if the child does not attend eligible post-secondary studies
If any of these sound familiar, it may be worth reviewing your plan contract and exploring your options. An Embark Education Savings Specialist can help answer any questions you may have.
What could you lose when switching from a group RESP?
| What could be affected | Why it matters |
|---|---|
| Enrolment fees and sales charges | May not be refunded when you leave the plan |
| Group plan benefits | Some plans offer bonus earnings to members who stay enrolled — leaving early can mean losing these |
| Investment income | Pooled earnings on your contributions may not transfer with you |
| Transfer vs. cancellation | These are different actions with different outcomes for fees and earnings |
| Timing and deadlines | Some plans have windows for transferring — missing a deadline may change your options |
| Government grants (CESG, CLB) | Must be transferred separately and handled by the receiving provider |
What happens to CESG, CLB, and other grants?
Government grants like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB) are separate from your group plan’s pooled investment income. They are held in a separate account in your child’s name.
When you transfer a group RESP, grants still need to be handled according to RESP transfer rules. The receiving provider must be able to administer the grants and any provincial incentives that apply to your family.
Before you initiate a switch, ask for a full statement showing your contribution history, CESG balance, CLB balance (if applicable), any provincial incentive balances, and accumulated earnings.
Questions to ask your group RESP provider before switching
- Can I transfer this group RESP to an individual or family RESP?
- Is this considered a transfer, a cancellation, or a withdrawal?
- What fees or sales charges have already been paid?
- Will any fees be refunded if I leave?
- Will investment income transfer to the new plan?
- Will I lose any group plan benefits?
- Are there deadlines or age restrictions on transferring?
- What happens to CESG, CLB, and provincial grants?
- Can you provide a full breakdown of contributions, grants, earnings, and fees?
Questions to ask the new RESP provider
- Do you accept transfers from group RESPs?
- Can I open an individual or family RESP with you?
- Which grants and incentives do you support?
- What documents do you need to process the transfer?
- Can you help coordinate the transfer with my current group plan provider?
- How will contributions, grants, and earnings appear after the transfer?
- What fees, investment options, and withdrawal support do you offer?
Thinking about switching from a group RESP? Embark can help.
Transfer an RESP to Embark or speak with an Education Savings Specialist to understand what to check before you move.
Should you choose an individual or family RESP?
If you have one child, an individual RESP is usually the simpler choice.
If you have more than one child, or plan to, a family RESP may offer more flexibility to allocate savings among siblings as their education paths become clearer.
Switch or stay? A simple way to think about it:
Switching may make sense if your family wants more control, flexible contributions, clearer tracking, or easier withdrawals.
Staying may make sense if your current group plan benefits are valuable and the contract still fits your goals.
What to check after the switch is complete
- Subscriber and beneficiary details are correct
- Contribution history has transferred accurately
- CESG balance is showing correctly
- CLB balance is showing, if applicable
- Provincial incentive balance is showing, if applicable
- Earnings or market value transferred as expected
- Fees charged are what you were told to expect
- Automatic contributions are set up or cancelled as intended
- Old group plan status is confirmed as closed
Common mistakes families make when leaving a group RESP
- Assuming a transfer and a cancellation are the same thing
- Leaving before understanding what happens to investment income
- Not checking group plan deadlines before starting the process
- Not asking about sales charges or enrolment fees
- Assuming all grants will automatically move without review
- Not saving statements before the transfer begins
- Choosing an individual plan when a family plan would better fit siblings
Frequently asked questions
Can I transfer a group RESP to an individual RESP?
You may be able to, but it depends on your group plan contract and provider.
Can I transfer a group RESP to a family RESP?
In some cases, yes. Some group plans allow transfers to family RESP plans.
Will I lose money if I leave a group RESP?
It depends on your plan. Some group plans have enrolment fees, sales charges, or group plan benefits that may not transfer if you leave early.
What happens to CESG when I switch RESP plans?
Government grants like the CESG are held separately from your group plan’s pooled earnings and must be transferred according to RESP rules.
Is switching from a group RESP the same as cancelling it?
No. Transferring a group RESP to another plan is a different action from cancelling it.
The bottom line
Switching from a group RESP to an individual or family RESP may be the right move for your family — but the details matter.
Take the time to ask the right questions, review your statements, and compare your options before making any changes.
