RRSP of RESP?

Whether you chose an RRSP or an RESP at least you are saving for your child's future. 

Is it a tax shelter? Q. Which product offers a tax shelter for money we are saving for our child's eduction?

A. The short answer is that both shelter the savings, but there are slight differences: The money withdrawn fron and RRSP is taxed at your tax rate and not that of your child, which is usually a lower rate. You can transfer up to $50,000 of your RESP's accumulated interest into your own or a Spousal RRSP*. You can withdraw form the RESP the interest in cash (subject to a 20% withholding tax on top of your regular tax rate)*. You can transfer the RESP to another child or even to yourself for educational purposes*. Is it a tax shelter? Q. Which product offers a tax shelter for money we are saving for our child's eduction? A. The short answer is that both shelter the savings, but there are slight differences: The money withdrawn fron and RRSP is taxed at your tax rate and not that of your child, which is usually a lower rate. You can transfer up to $50,000 of your RESP's accumulated interest into your own or a Spousal RRSP*. You can withdraw form the RESP the interest in cash (subject to a 20% withholding tax on top of your regular tax rate)*. You can transfer the RESP to another child or even to yourself for educational purposes*. As always, your Heritage RESP Representative will be happy to explain everything to you.      * Certain conditions apply. See Prospectus for details