The registered savings account for children in Canada is the registered education savings plan (RESP). It is a plan opened for a beneficiary, usually a child, to save for post-secondary education. It is offered through a promoter. Contributions are held inside the plan, and the investment income it earns can grow without being taxed while it stays in the plan.
Which registered savings account exists for children in Canada?
An RESP is a single registered plan that links one or more beneficiaries to a subscriber, the adult who opens and funds it. The plan is registered, so the government grants it tax-sheltered status and pays grants such as the Canada Education Savings Grant (CESG) directly into it. The money is meant for education, and its use is set by the plan’s rules.
The plan comes in three structures, which differ mainly in who is named as beneficiary and how the plan is run:
| Structure | Beneficiaries | Who sets it up | Key feature |
|---|---|---|---|
| Individual plan | One beneficiary | Any adult, through a promoter | One subscriber funds one child’s plan |
| Family plan | Several beneficiaries related to the same subscriber | Any adult, through a promoter | Siblings share one plan; the Canada Learning Bond (CLB) is paid only to eligible children named in the plan, up to $2,000 per child |
| Group plan | Beneficiaries under a pooled arrangement | A group plan dealer | Contributions from members are pooled, and the plan’s terms set how payouts are made |
Tax-sheltered growth applies to all three structures. Investment income, such as interest, dividends, and capital gains, accumulates inside the plan without being taxed each year. Tax is generally deferred until money is paid out of the plan, so the plan’s value can grow over time. How payments are taxed depends on the type of withdrawal; confirm the details with the CRA.
Who can open an RESP for a child?
Any adult can open a registered education savings plan (RESP) in Canada. The adult who opens the plan and makes contributions is the subscriber, and the person who will use the money for education is the beneficiary. The subscriber does not have to be the child’s parent. The same rules apply whether the child is their own or someone else’s.
Subscribers can be:
- A parent
- A guardian
- A grandparent
- Another relative
- A friend
A grandparent, aunt, uncle or family friend can therefore open a plan for a child and contribute to it. The subscriber applies through a promoter and names the beneficiary when the plan is opened.
An adult can also open an RESP for themselves, with themselves as the beneficiary. The plan is then held under their own name, with no separate child involved.
What do you need to open an RESP?
Opening an RESP requires identification numbers and beneficiary details, but no bank account. You need a Social Insurance Number (SIN) for the child, who is the beneficiary, and a SIN for yourself if you do not already have one. You also enter the beneficiary’s details on the application form. The Government of Canada states that no bank account is needed to open an RESP (source dated 2025-10-16).
| Item | Who it applies to | Status |
|---|---|---|
| Social Insurance Number (SIN) | Child (beneficiary) | Required |
| Social Insurance Number (SIN) | Subscriber (you) | Required if you do not already have one |
| Beneficiary details | Child named on the plan | Entered on the application form |
| Bank account | Subscriber | Not required |
Gather these items in the following order before you start the form:
- Locate the child’s SIN. It is required in every case, because the beneficiary must be identified on the plan.
- Check whether you have your own SIN. If you do not, you need one before you can complete the application.
- Prepare the beneficiary’s details. You enter them on the application form, where the child is named as beneficiary.
- Skip banking details. Because no bank account is needed, you do not have to gather account information to begin.
The promoter you choose receives this information through the application. The Government of Canada notes that the promoter can also help you apply for the Canada Learning Bond (CLB), the Canada Education Savings Grant (CESG), and provincial benefits at the same time (source dated 2025-10-16).
How to open an RESP step by step
Opening a Registered Education Savings Plan (RESP) follows a fixed sequence: choose a promoter, open the plan with the beneficiary named, let the promoter file the grant requests, then make the first eligible contribution.
Step 1: Choose a promoter
The promoter is the institution that offers and administers the plan. Promoters include banks, credit unions and group plan dealers. Compare them on how they handle grant applications at opening. Ask each promoter directly which grants it will file for you.
Step 2: Name the subscriber and the beneficiary
The subscriber opens and contributes to the plan. The child is named as the beneficiary at opening. You do not need a bank account to open an RESP, so the promoter choice is not limited by your existing banking arrangements.
Step 3: Open the plan and request the grants
When you open the plan, the promoter can help you apply for the Canada Learning Bond, the Canada Education Savings Grant and provincial benefits. Confirm with the promoter which applications are being submitted, so you know what is pending.
Step 4: Make the first eligible contribution
The grants do not all depend on a contribution in the same way:
| Grant | Contribution needed | Timing and conditions |
|---|---|---|
| Canada Learning Bond (CLB) | No | Eligibility depends partly on adjusted family income |
| Canada Education Savings Grant (CESG) | Yes, an eligible contribution | Deposited within 6 to 8 weeks of that contribution |
Opening the plan alone does not trigger a CESG deposit. Make the first contribution, record its date, and count forward six to eight weeks to check that the deposit arrives.
How much does the government add with the CESG?
The Canada Education Savings Grant (CESG) adds money to an RESP as a percentage of contributions, within annual caps. The basic CESG is 20% of annual RESP contributions, up to CAD 500 per year. A second layer, the additional CESG, depends on family net income. It raises the yearly total to CAD 600 or CAD 550 for lower- and middle-income families, and the basic amount alone applies above the top threshold.
Basic CESG: 20% up to CAD 500 per year
The basic grant equals 20% of contributions made in the year, capped at CAD 500. Reaching the cap requires CAD 2,500 in contributions in a single year (CAD 2,500 × 20% = CAD 500).
Carry-forward room: up to CAD 1,000 per year
Grant room builds up for each Canadian resident child under 18 at CAD 400 per year for 1998 to 2006 and CAD 500 per year from 2007. When carry-forward room is available, the yearly maximum can reach CAD 1,000. At 20%, that corresponds to CAD 5,000 in contributions in one year.
Additional CESG by family net income
| Family net income | Additional CESG | Total yearly CESG |
|---|---|---|
| Under CAD 57,375 | 20% of the first CAD 500 contributed, up to CAD 100 | CAD 600 |
| CAD 57,375 to CAD 114,750 | 10%, up to CAD 50 | CAD 550 |
| Above CAD 114,750 | None | CAD 500 |
What is the Canada Learning Bond?
The Canada Learning Bond (CLB) is a federal benefit for low-income families that is paid into a Registered Education Savings Plan (RESP) for a child. Its main feature is that it requires no family contribution. According to the Government of Canada (2025-10-16), you do not need to contribute to receive the CLB, whereas you do need to contribute to receive the Canada Education Savings Grant (CESG).
Eligibility depends partly on adjusted family income, so the household’s income situation determines whether the child qualifies. The source does not list income thresholds, so check the current criteria on the Government of Canada website before applying.
The CLB can be paid into an RESP for an eligible child, whatever the plan structure. In a family plan, the CLB can be paid only to eligible children named in that plan, up to CAD 2,000 per child. The cap applies to each child, not to the plan as a whole.
| Feature | Rule |
|---|---|
| Family contribution | None required |
| Eligibility basis | Partly adjusted family income |
| Family plan recipients | Only eligible children in the plan |
| Maximum amount | Up to $2,000 per child in a family plan |
What are the age limits and rules to know?
The lifetime CESG limit is CAD 7,200 per beneficiary. This is the total Canada Education Savings Grant the child can receive across the life of all their RESPs, so it counts every grant paid, whatever the number of plans or promoters. Grant payments stop once the lifetime cap is reached.
Age rules govern when contributions can still earn the CESG:
| Child’s situation | Rule |
|---|---|
| Under 18, Canadian resident | Grant room builds up each year: CAD 400 per year for 1998 to 2006, CAD 500 per year from 2007 |
| Until the end of the calendar year the child turns 17 | CESG can be paid on contributions made in that window |
| Aged 16 or 17 | At least CAD 2,000 contributed before the end of the year the child turns 15, or at least CAD 100 per year in four of the earlier years |
The age 16 and 17 conditions apply in addition to the general rule. A child who reaches 16 without meeting either test cannot use the extra conditions to unlock later contributions.
The source material for this section does not set a maximum plan duration or a fixed age at which the plan must close. Before assuming a deadline, check the promoter’s plan terms and the Canada Revenue Agency’s current guidance, both dated for your filing year.
What happens if the child doesn’t go to school after high school?
If the beneficiary does not pursue post-secondary education, the Canada Education Savings Grant (CESG) paid into the RESP is returned to the government. The grant does not stay with the child or the subscriber. The CESG is a government top-up on eligible contributions, so it is tracked separately from the money the subscriber put in.
This section covers only the CESG return rule. How subscriber contributions and educational assistance payments (EAPs) are treated depends on the plan and on CRA rules, so confirm it with the promoter and the CRA. Before deciding what to do with a plan, work through these steps:
- Ask the promoter for a current statement that shows the plan balance and how much of it came from CESG.
- Separate the grant amounts from your own contributions in that statement.
- Check the Canada Revenue Agency’s current RESP guidance on withdrawals and taxation.
- Ask the promoter which options the plan allows if the beneficiary does not enrol in a post-secondary program.
| Item in the plan | Treatment according to the source facts |
|---|---|
| CESG paid into the plan | Returned to the government if the beneficiary does not pursue post-secondary education |
| Subscriber contributions | Tax treatment not stated in the source facts; confirm with the promoter and CRA |
| Educational assistance payments | Tax treatment not stated in the source facts; confirm with the CRA |
Frequently asked questions
Who is allowed to open an RESP for a child?
Any adult can open one, including a parent, guardian, grandparent, other relative, or friend, and that adult becomes the subscriber. You need a Social Insurance Number for the child and for yourself if you don’t already have one, but a bank account is not required.
Do I have to contribute money to get government grants?
Not for every grant. The Canada Learning Bond (CLB) can be paid without a contribution, but the Canada Education Savings Grant (CESG) requires an eligible contribution, and the CESG is deposited within 6 to 8 weeks of that contribution. The promoter can help you apply for both when you open the plan.
How much CESG can one child receive each year?
The basic CESG is 20% of annual contributions, up to $500 per year, and unused carry-forward room can raise the yearly maximum to $1,000. The lifetime limit is $7,200 per beneficiary, and families with lower net income may qualify for an additional CESG under the 2025 thresholds.
