RESP
- Choose the Right Plan
- Government Grants
- Get Started
Why Open an RESP With BMO InvestorLine?
With our detailed RESP account tracking and robust RESP centre, you'll always have a clear picture of your investments and you can manage them easily - all in one place.
And combining your assets can really add up. Clients with assets over $50,000, as well as 5 Star Program and Active Trader Program clients can take advantage of our flat fee of only $9.95 per trade. Want full control over your entire investment portfolio? It just makes sense to consolidate your assets with BMO InvestorLine.
A few more great reasons to open a BMO InvestorLine RESP:
- RESP summary. Your account summary shows your year-to-date contributions with BMO InvestorLine, and the daily status update keeps you informed of your recent grant payments.
- Diversification. You have various investment options for your RESP. Choose from options, equities, mutual funds, fixed income securities, GICs, and more.
- Online contributions. It's quick and easy to deposit your RESP contributions directly into your account.
- Fees. No fee when your account value is greater than or equal to $25,000*. An annual administration fee of $50 - for RESPs and $100 - for all other plan types is charged for accounts less than $25,000 and is debited from the account in advance each year.
Choose the Right Plan
Choose from two general types of RESPs: family or individual.
- Family plan. You can name one or more children as beneficiaries. The children must be related to you, and can be your children - including adopted children - grandchildren.
- Individual. Set up a plan for one person, who does not need to be related to you. There are no age limits, so you can even set up an RESP for yourself or another adult.
RESP Calculator
It pays to start early. Our RESP Calculator helps you to see how quickly your savings can accumulate, and lets you compare different savings scenarios.
Apply for grants and incentives
The Canadian federal government and select provincial governments offer grants and incentives to help you save for your child's post-secondary education. Click on the links below to discover what might be available to you.
Basic Canada Education Savings Grant (CESG): receive this grant up to a maximum of $500 per year, per child. The CESG is payable until the end of the calendar year a child turns 17, and the maximum lifetime CESG payment is $7,200.
Additional Education Savings Grant (AESG): receive an additional percentage according to your family income. This grant is limited to individual plans or siblings only family plans.
- Net family income less than $42,707*: beneficiaries will receive the AESG at a rate of 20% on the first $500 (or less) of annual contributions.
- Net family income between $42,707 and $85,414*: beneficiaries will receive the AESG at a rate of 10% on the first $500 (or less) of annual contributions.
Canada Learning Bond (CLB): You can qualify for a Canada Learning Bond if your child was born after December 31, 2003; and your monthly Canada Child Tax Benefit payment (known as the "baby bonus" or "family allowance") includes the National Child Benefit Supplement. This supplement is usually paid to families whose net annual income is below $42,707*. This grant is limited to individual plans or siblings only family plans.
Quebec Education Savings Incentive (QESI): The Government of Quebec introduced the QESI to encourage Quebec families to save for their children's post-secondary education. This incentive is paid in the form of a refundable tax credit by Revenu Québec directly into the RESP of the beneficiary.
Basic Amount: Each year, receive an amount equal to 10% of the net contributions paid into it over the course of a year, up to a maximum of $250 based on the first $2500 of net contributions. In addition, as of 2008, any benefits accrued during previous years can be added to the basic amount, up to a maximum of $250.
Increase Amount: To help low-income families, an increase of up to $50 per year, calculated on the basis of family income, may be added to the basic amount. This grant is limited to individual plans or siblings only family plans.
- 10% Additional QESI will be paid on the first $500 of contributions if net family income is less than or equal to $41,544*.
- 5% Additional QESI will be paid on the first $500 of contributions if net family income is between $41,544 and $83,088*.
Alberta Centennial Education Savings Plan (ACES): Qualifying children born to or adopted by Alberta residents (parent or legal guardian) are entitled to a one-time initial grant of $500 to a child's RESP for each eligible child born on January 1, 2005 or later. This grant is limited to individual plans or siblings only family plans.
Three separate grants of $100 each for eligible children who reach the age of 8, 11 and 14 years on January 1, 2005 or later. The maximum personal entitlement under the Alberta Grants is $800.
Transfer Funds
Most transfers can be made on a tax-free basis from one RESP to another. Three rules must be observed to ensure you retain the grant money and avoid paying tax:
- There must be a common beneficiary between the originating plan and the receiving plan.
- You must apply for the grants that you want to transfer from the other institution.
- A beneficiary under the receiving plan must be under 21 years of age, and a brother or sister of a beneficiary under the originating plan.
To transfer funds, complete and sign the Registered Education Savings Plan (RESP) transfer form
Quebec Education Savings Incentive transfer form
Contributions:
Family Plan:
You can contribute up to a lifetime maximum of $50,000 per beneficiary. The contributions you make to an RESP are not tax-deductible, but tax on the income earned on investments within the Plan is deferred until the intended beneficiary withdraws the funds. In many cases, the beneficiary will be in a lower tax bracket at the time withdrawals are made. Contributions for any beneficiary on the plan may be made until they turn 31 years of age.
Individual Plans:
You can contribute up to a lifetime maximum of $50,000 per beneficiary. The contributions you make to an RESP are not tax-deductible, but tax on the income earned on investments within the Plan is deferred until the intended beneficiary withdraws the funds. In many cases, the beneficiary will be in a lower tax bracket at the time withdrawals are made. Contribution can be made up to the end of the 31st year after the year the plan was opened. Contributions are not dependent on the age of the beneficiary.
Get Started
