Unlike some other accounts with tough-to-remember contribution cutoff dates, RESP’s annual deadline couldn’t be easier to memorize. If you intend to contribute for the current year, you may contribute into an RESP up until the final day of the year, December 31. So if it’s 11 PM on New Year’s Eve right now, we suggest you put down the champagne and get thee depositing right away. Need we remind you why these accounts are so amazing?
The absolute best way for you to save for a kid’s higher education is to open an RESP. Whether she’s your own child, your grandchild, or just some lucky kid with a generous benefactor. The benefits are two-fold. A genius government program called the Canada Education Savings Grant (CESG) will match a portion of your contribution—a full 20% up to $2,500, or $500 dollars a year up to a lifetime per-kid maximum of $7,200. And that RESP will grow tax-free, so any gains in the investment makes won’t be taxed upon withdrawal as long as it’s used for tuition, books, or any kind of living expenses associated with university or trade school.
We’re certainly a little biased, but we think the best home for a RESP, is Wealthsimple. Open an RESP with us and benefit from state of the art technology, low fees and the kind of personalized, friendly service you might have not thought imaginable from an automated investing service.