RESP Benefits - Less Tax, More Money

We all like saving on our taxes – and an RESP from Heritage Education Funds is designed to do just that.

No tax while it grows

While your RESP contributions are not tax deductible the way they are for your RRSP, the investment earnings your contributions make within your education fund are sheltered from tax.

Your RESP also provides a tax shelter for any interest or other investment earnings your government grants earn within the plan.

Low or no tax when it's needed

When it's time to receive Educational Assistance Payments (EAPs) from the RESP, it is taxable in the student’s name. And since students typically have low income and high exemption status, the tax payable should be low or non-existent.

A visible difference

Want to see the difference saving for a child's education with an RESP can make? Just take a look at this chart* and see how much greater your savings can be with an RESP and the Canada Education Savings Grant (CESG). You could be ahead by over $31,800! 

*Both examples are based on monthly contributions of $208.34 (for a total of $2,500 over 12 months) and exclude fees. Interest is calculated with an average annual rate of 6% compounded monthly over 18 years. Canada Education Savings Grant is 20% of contributions to a maximum of $500 per child per year. Non-RESP earnings assume a marginal tax rate of 40%. Individual circumstances and results may vary.