Registered Education Savings Plan (RESP)

A Registered Education Savings Plan provides for the future post-secondary education of a beneficiary. SunRise Credit Union uses a third party provider for this product.

Features

• Contributions are not tax deductible.
• The Federal Government will contribute an additional 20% per child per year to a maximum of $500.00 per child per year-Canadian Education Savings Grant.
• Maximum contribution limits per beneficiary apply.
• Multiple beneficiaries can be named
• Unused RESP monies:
  • May be transferred to an RRSP provided there is room in the RRSP, but the government’s contributed portion must be paid back.
  • May be cashed in by contributor. Interest earned, does not need to be paid back, however the contributor will be taxed as interest has left the shelter of the RESP and is taxable income.
• Payments can be used to cover all expenses associated with obtaining the post-secondary education.
• Interest earnings within the plan are tax sheltered until withdrawn by the beneficiary for educational purposes.
• RESP is owned and controlled by the subscriber (purchaser).
• Beneficiary must be enrolled in a qualifying educational program in order to receive payments.

Interest

• Interest is paid in accordance with length of plan.
• Interest must be compounded, as it cannot leave the plan it is sheltered.

Pricing

• No administration fees, however a transfer-out fee may apply.