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Everything to know about RESPs

While there’s no manual for parenting (we checked), there is help for planning your child’s post-secondary future. Let’s dive into types of RESPs, government grants, and more—all in one place.

Open an RESP
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Registered Education Savings Plan (RESP)

An RESP (Registered Education Savings Plan) is an investment account that helps you save for your child’s education—and their future. The best part? The government offers tons of grants that could contribute up to $500 a year, $7,200 total per child or even more. That’s free money.

Choosing the right RESP

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Family Plan

• Start with one child, add siblings anytime: Whether you have one kid now or a few down the road, a Family Plan makes it easy to bring future children under the same roof.
• Share grants and income: Siblings can share both grant room and investment income, making sure unused amounts benefit the whole family (up to $7,200 CESG per child).
• For parents or grandparents: Children in this plan must be siblings.

Individual RESP

Anyone can open an account and save for a child’s education — parents, relatives or family friends.
You should know: From new born to new grad, as soon as your child has a SIN, you can open an RESP for them.

Your RESP in 3 simple steps

Here’s what you can expect from your RESP, from start to finish.

1. Open your RESP

In less time than it takes to pack your kid’s lunch (about 8 minutes), you can open an RESP from the comfort of your home. You’ll need:

Valid Social Insurance Number (SIN): For both you and your child. No SIN? No worries, apply for a SIN here.
Government issued ID: Your driver’s license will do.

2. Help your RESP grow

Now that the not-so-hard-part of opening your account is over, decide how much and how often to contribute. To start:

Link your bank account: Log in to your Embark account to connect your bank and schedule contributions whenever you like:
• One-time contribution: Add funds whenever it works for you.
• Recurring contribution: Set up automatic contributions to stay on track with your savings goals.
Pay like a bill:
Add Embark as a payee in your online banking.
Transfer an existing RESP:
Bring your child’s savings under one roof to simplify record-keeping, stay on top of annual and lifetime contribution limits, and tap into Embark’s professionally managed glide-path portfolios. One plan, one statement, zero guesswork.

3. Go withdraw from your RESP

When they’re ready for school, your RESP will be too. We’ll be here to guide you through taking out the funds, while keeping tax rates and your child’s needs in mind.

Did you know: An RESP can be used for educational expenses like rent, food, and books. Eligible expenses typically include tuition, transportation, accommodation, and other costs related to post-secondary education.

Open an RESP

Free money? Yes, please

Did you know federal and provincial programs can add up thousands of dollars in education grants for each child? We automatically secure every dollar your family qualifies for.

How we help:

We handle all the paperwork and grant applications for you.

You get the maximum grant based on your contributions and eligibility.

What to know:

Canada Education Savings Grant (CESG): Gives you 20% back on contributions, up to $500 a year per child1.

Contribute $2,500 a year to max out the CESG grant by your child’s mid-teens2.

If you’re behind, you can catch up — any unused CESG grant room automatically carries forward3.

Extra grants:

Additional CESG: Up to 20% extra on the first $500 a year if your income qualifies.

Canada Learning Bond (CLB): Up to $2,000 per child for lower-income families. No contributions required.

Provincial grants: Additional funds in select provinces.

Check out more information on government grants.

Did you know: An RESP can be used for apprenticeship programs, CEGEPs, trade schools, colleges and universities.

Open an RESP

Smarter strategies to save

The average cost of post-secondary is around $90,000 (we know). The sooner you save, the more you can earn. Here’s how:

1. Start with a monthly contribution

With first-year tuition ranging roughly $8,000 – $16,000, contributing even $100 a month goes a long way.

2. Add your child’s personal details or SIN (Social Insurance Number)

Apply a SIN for your child and add them to your plan to unlock the 20% CESG grant match on every qualifying dollar you put in.

3. Add a joint-account holder

Only a spouse or common-law partner can be added as a co-owner, but doing so puts both of your names on the RESP, lets you contribute and monitor progress together, and opens the door to Embark perks designed for joint holders—all in one tidy package.

4. Tax-sheltered growth

Inside an RESP, any interest, dividends, or capital gains grow tax-deferred. When the money is withdrawn for school, the taxable portion is reported in your child’s name—typically at a much lower tax rate—so more of your savings stay in play.

5. Get government grants

Think of it as free money for your child’s education — the Canada Education Savings Grant (and any provincial top-ups) can add thousands of dollars on top of the savings you put in. Don’t leave that on the table.

RESP rules

While setting up, contributing to, and withdrawing from your RESP is straightforward, there are a few simple rules you need to keep in mind. Don’t worry, we’re here if you have any questions.

Understand your post-secondary options you have

Understanding how RESP withdrawals work helps you maximize your savings and avoid unnecessary fees or taxes. It’s important to know that you can withdraw your original contributions anytime tax-free, while earnings and grants have specific rules to follow to avoid penalties4.

Withdraw funds without penalty

Knowing how to withdraw funds penalty-free is important—so is tracking your contributions against the $50,000 lifetime limit per beneficiary. Stay on top of your limits to maximize grants and avoid over-contribution fees4.

Your RESP checklist

Choose the right RESP.

Link your bank account.

Set up recurring contributions — even a small amount adds up.

Watch your tax-free savings grow and grow.

Need help? Book a chat with us.

Frequently Asked Questions

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Legal disclaimers

1. Basic CESG pays 20 % on annual contributions, to a maximum of $500 a year (or $1,000 when using carry-forward), until December 31 of the year the beneficiary turns 17.
2. To receive CESG at ages 15 or 16, one of two conditions must be met by December 31 of the year the child turns 15:
– at least $2,000 total contributions made and not withdrawn, or
– at least $100 contributed (and not withdrawn) in any four previous years.
3. Carry-forward rules cap CESG received in a calendar year at $1,000 ($500 on current-year contributions + up to $500 of unused grant room).
4. For complete information, see the Embark Student Plan Prospectus.

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