Gain benefits from a number of government grants with an RESP - your education savings plan. With the Canada Education Savings Grant*, you can receive up to $7,200 for your child's education from the Canadian government. With the Canada Learning Bond, you can receive up to $2,000 for your child's post-secondary education.
Discover your Entitlement to the RESP Grants Available to You
Canada Education Savings Grant (CESG)
The CESG equals 20% of the first $2,500 of your annual contributions. If your child is eligible for the CESG, you will receive a maximum of $500 to $600 annually until your child reaches the age of 17, to a lifetime amount of $7,200. Learn more about the CESG here.
Canada Learning Bond (CLB)
If your child is eligible for the Canada Learning Bond (CLB), you will receive a one-time initial contribution of $500 to your child's RESP with an additional $100 for each year of eligibility until age 15. Learn more about the CLB here.
Alberta Centennial Education Savings Plan (ACES)
Hurry, this grant is being phased out, but if you open your Heritage RESP now you still qualify! As you are a resident of Alberta and your child was born in 2005 or later, you will receive a one-time initial contribution of $500 to your child's RESP. Subsequent grants of $100 for children attending school in Alberta at ages 8, 11 and 14. Learn more about the ACES here.
Quebec Education Savings Incentive (QESI)
If your child is a resident of Quebec, they may be eligible for QESI which equals 10% of the first $2,500 of net annual contributions. Learn more about QESI here.
Saskatchewan Advantage Grant for Education Savings (SAGES)
As a resident of Saskatchewan, your child may be eligible for the newly introduced education grant which matches up to 10% annually on the first $2,500 of contributions from birth to age 17, with a lifetime maximum of $4,500. Heritage is expecting to begin processing SAGES applications in fall 2013 and this provincial grant will be retroactive to all contributions made from January 1, 2013. Open a Heritage RESP today and your Heritage representative will be in contact with you to complete your SAGES application once it becomes available.
British Columbia - Training and Education Savings Grant
The provincial government in British Columbia (B.C.) is proposing a new Training and Education Savings Grant, which would be available only to those who have a RESP. It is anticipated to be offered as a one time grant of $1,200. No matching or additional contributions are required to receive this grant, and eligibility will be strictly for beneficiaries who are residents of B.C. and are six years of age. All that is required is to open an RESP account and apply before the child turns seven years old. Further announcements will be made when available by the provincial government.
Contact us today to speak with a RESP expert and learn more about all of the grants listed above.
RESP Tax Benefits
Take advantage of RESP tax benefits. With an RESP, you can shelter your investment earnings from tax while your education fund grows. When your child is ready to use his/her RESP for university or college, the funds are taxable under the student's name. Because students typically have high exemption status and low income, the taxes they pay will be little to none.
RESP Tax Benefits Include Paying Less Tax and Earning More Cash
Heritage Education Funds RESPs are designed specifically to help you save on taxes. Unlike an RRSP, your RESP contributions are not tax deductible. This means the earnings your investments make within the RESP is sheltered from tax. Your RESP also offers a tax shelter from interest earnings and from RESP government grants.
Once your child is ready to use his/her RESP for post-secondary education, the funds are taxable under the student's name. Because students commonly have high exemption status and low income, the taxes they pay are low if any at all.
Enjoy Tax Free Savings with a Heritage RESP
The benefits of RESP tax free savings are evident when compared to other methods of savings. See the chart below and discover how much greater your savings can be with a Heritage RESP.
Increasing Your Contributions
Increasing your RESP education savings plan contributions early is crucial as it allows more time for your contributions to grow. Increased RESP contributions will also help you reach your education savings goal much quicker.
Contact us today to build your child's RESP education savings plan with increased payments and additional student savings bonds.
Increase Your RESP Contributions for a Greater RESP Return on Education Savings
Increasing your RESP contributions early can maximize your benefits RESP tax benefits in the long run and provide you with a higher RESP return, even if your increase is very minimal. Increasing your contributions early is key since it allows more time for your contributions to grow. Increased RESP contributions will also help you reach your education savings goal much quicker.
If your financial situation does not allow you to comfortably increase your contributions, you have up until your child's 15th birthday to add additional units to your child's RESP.
Capitalize on the RESP Contributions and Maximize the RESP Benefits
Increasing your RESP contributions could maximize potential RESP return payouts due to compound interest. If you are currently saving for your child's education through RESPs, right now is the best time to consider increasing your RESP contributions. A Heritage RESP Representative is only a local phone call away to help you decide the best RESP contribution plan for you.