You can open an RESP as soon as your child has a Social Insurance Number (SIN). Opening it early helps maximize the benefits of tax-deferred growth and government grants. Don’t worry, if you open an RESP later, you may be able to catch-up on government incentives.
How to open an RESP (Registered Education Savings Plan)
Reviewed by Paul Thorne
Opening a Registered Education Savings Plan (RESP) is an effective way to save for your child’s, grandchild’s or loved one’s education while benefiting from government grants and incentives, and tax-deferred growth.
Whether you’ve just welcomed a new baby or are planning for your child’s, grandchild’s or loved one’s post-secondary education, follow these steps to get started.
1. Choose the right RESP provider
Before you open an RESP, you’ll need to choose an RESP promoter . You can open an RESP with many institutions including life insurance companies, credit unions, investment firms, banks, and scholarship plan dealers. When comparing providers, look at what they offer:
- Types of RESPs: Are you looking to open an individual, family, or group RESP plan?
- Investment options: Do they offer savings accounts, mutual funds, GICs, or other choices?
- Fees and penalties: What are the fees for opening or managing the plan? Are there any penalties for withdrawals?
- Services and support: Do you have questions on how to best invest the savings? Do you have the time to build and maintain the plan?
2. Learn about government incentives
One of the most significant benefits of opening an RESP is getting access to government grants and incentives. The government offers several incentives to help grow your savings:
- Canada Education Savings Grant (CESG): The government matches 20% of your annual contributions, up to $500 per year per child, with a lifetime limit of $7,200. Additional matching CESG of 10% or 20% may be available based on family income.
- Canada Learning Bond (CLB): For eligible low-income families, the CLB provides up to $2,000 per child.
- Provincial grants: British Columbia and Quebec also offer incentives to boost RESP savings.
Learn more about RESP grants and contributions
An advisor can help ensure that you don’t miss out on additional contributions to your child’s RESP.
3. Select a plan type
There are three types of RESPs to choose from:
Individual RESP
This plan is for one beneficiary, who can be anyone you designate, even if they aren’t related to you.
Family RESP
Can be used for multiple children, grandchildren, great-grandchildren, adopted children, and stepchildren. A great option if you’re saving for multiple children.
Group RESP
Offered by certain scholarship plan dealers. This plan pools your contributions with other investors and is typically more restrictive.
Sun Life offers 2 types of RESPs: individual and family. Learn more about Sun Life RESPs
Note: Throughout this page the term “child” refers to child, grandchild, great-grandchild, or a loved one that is a beneficiary of the RESP.
4. Gather required information
You’ll need to have the following information ready to open an RESP:
- Social Insurance Numbers (SINs) for both yourself (the subscriber) and the beneficiary or beneficiaries (the child or children you are saving for).
- Proof of Canadian residency for the beneficiary.
5. Open the RESP account
Once you’ve decided on a provider and a plan, it’s time to open the account. Depending on the institution, you can either do this online or in-person.
Sun Life has advisors who can help you tailor an RESP that suits your needs.
Range of competitive products
We offer professionally managed investment products across a range of categories to help your little dreamers become big achievers.
Save time
You might not have the time or desire to build and maintain a portfolio. We can help.
Expert support
You have access to our team of advisors providing advice on products that are suitable for your specific circumstances and goals.
6. Choose your investments
After opening the account, you’ll need to decide how you want to invest the money in your RESP. Common investment options include mutual funds, GICs, stocks and bonds.
You can work with an advisor to ensure your RESP needs and goals are met.
7. Set up your contributions
Next, establish a contribution plan that fits your budget and savings goals:
- There’s no minimum deposit required to open an RESP
- Consider setting up automatic contributions
Remember, you can contribute as much as your budget allows, up to a lifetime limit of $50,000 per beneficiary.
8. Sign the papers and you’re ready to start saving!
Before finalizing your RESP, make sure to read all plan documents, including terms and conditions regarding contributions, withdrawals, and government incentives.
Once you’re ready, sign the documents – and you’re ready to start saving!
New parent RESP FAQs
There is no minimum requirement, so start with whatever you can afford. A small, regular contribution can add up significantly over time, especially with the addition of grants and incentives.
Learn which RESP grants and contributions are applicable to you
Any RESP is suitable for a newborn or a young child.
A family RESP can be useful if you plan to save for one or more children.
Most RESP providers, including Sun Life, offer online tools, account dashboards, and statements where you can track your contributions, grants, and investment growth over time.
Yes, however, the $50,000 lifetime contribution limit applies across all accounts for the same beneficiary.
It’s important to communicate with other contributors to ensure that the limit is not exceeded.
It’s also important to communicate with other contributors to determine who will apply for the grants.
If your child doesn’t pursue any qualifying education, your options include:
- Transfer funds to another child’s RESP, subject to limits
- Transfer part of your RESP to your RRSP if you have RRSP contribution room
- Withdraw the contributions and investment growth (taxes and penalties will apply) and the grants must be returned or
- Transfer your RESP to an RDSP
Only the plan holder(s) of the RESP (also known as the subscriber) can withdraw.
This means that it’s typically the parent or grandparent who withdraws from the account.
Grandparent RESP FAQs
Yes, grandparents can open an RESP for their grandchildren. You’ll need the Social Insurance Number (SIN) of both yourself (as the plan holder) and your grandchild (as the beneficiary).
While there are no specific restrictions on contributions from grandparents, remember that the maximum lifetime contribution per beneficiary is $50,000. If multiple RESPs are opened for a child, the combined total from all contributors cannot exceed this amount, otherwise a tax will apply to any excess contributions.
Communication is key when multiple people are contributing to the same child’s RESP.
Since the lifetime contribution is $50,000, it’s important to coordinate contributions to avoid exceeding this limit and losing out on potential grants or other incentives.
You’ll also need to co-ordinate who will apply for the grants and incentives.
Yes, if you are the account holder of an individual or family RESP.
If you’re unsure of what to invest in, an advisor can help you choose the best investment options for your grandchild’s future education.
Contributions to an RESP aren’t tax-deductible for you. However, the income earned within the plan will grow tax-deferred.
When you withdraw funds for your grandchild’s education, your grandchild will pay tax on the income and incentives. But as students, they’ll often have lower incomes, so they might pay little or no tax.
It depends on whether you name a subsequent subscriber in your will.
If you name a subsequent subscriber in your will (such as a parent), the RESP will continue.
If not, the government grants must be returned, and the income earned in your RESP will be taxable to you and form part of your estate.
Speak with your advisor to ensure your RESP is aligned with your estate planning goals.
Yes, grandparents can open a family RESP for multiple grandchildren, provided they are related by blood or adoption.
A family RESP allows flexibility to allocate funds between multiple beneficiaries, which can be useful if some grandchildren pursue more expensive education options than others.
More RESP resources
RESP Calculator
Find out how much you need to save and understand how RESPs can help cover your child(ren)'s post-secondary education costs.
Transfer RESP To RRSP
Looking to transfer an RESP to an RRSP? Learn more about eligibility, tax implications, and other considerations before you do.
RESP or TFSA for my child?
Not sure whether to save for your child’s education in an RESP or a TFSA? Here’s how they work and how they’re different.
This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply. Last updated : March 14, 2025.