Skip to Cookie Banner Skip to content Skip to footer
Mutual funds
  • Mutual funds list
  • About RBC mutual funds
  • RBC Fixed Income Pools
  • RBC Portfolio Solutions
ETFs
  • ETFs list
  • About RBC iShares ETFs
  • ETF investment strategies
Alternative investments
  • Alternative investments list
  • About RBC alternative investments
Types of investments
  • All about mutual funds
  • ETF Learning Centre
View all learn & plan articles
{{r.fundCode}} {{r.fundName}} {{r.series}} {{r.assetClass}}
  • See all results
  • See results in Products
  • See results in Insights
RBC iShares

Welcome to the new RBC iShares digital experience.

Find all things ETFs here: investment strategies, products, insights and more.

.hero-subtitle{ width: 80%; } .hero-energy-lines { width: 70%; right: -10; bottom: -15; } @media (max-width: 575.98px) { .hero-energy-lines { background-size: 200% auto; width: 100%; } }

An RESP is an excellent choice for saving for a child’s education. Parents, grandparents or other relatives can also open an RESP for a child.

Tax-deferred earnings and government grants (if your child is eligible) are two great things about an RESP. The CESG matches 20% of the first $2,500 each year (e.g. up to $500 per year, to a maximum of $7,200) contributed for an eligible child under 18. The lifetime contribution limit is $50,000.

There’s no set annual limit, so when and how much you contribute is up to you, and you can start saving for your child’s education at any time as long as they have a Social Insurance Number and are a Canadian resident.

Similar to RRSPs, your RESP can hold a variety of investment products – mutual funds, stocks, bonds, etc. While you can’t deduct the contributions made to an RESP from your taxable income, the investment earnings on RESP contributions are tax-deferred.

When investment earnings and grants are withdrawn to pay for the child’s education, they are counted as the child’s income – not yours – and therefore little or no tax may be owing. Most students typically have a marginal tax rate that is very low.

Individual Plan

This allows for a single beneficiary and there are no relationship requirements. All family members (including aunts and uncles) and even friends can contribute to this type of plan.

You can also start an individual plan for yourself to save for adult education courses on a tax-sheltered basis in future years.


Family Plan

This allows for one or more children as beneficiaries as long as they are related to you by blood or adoption. It allows parents, grandparents or siblings of children to contribute to the RESP.

Money in a family plan can be used to assist one or more beneficiaries. If one beneficiary doesn’t pursue higher education, or if education costs vary between your beneficiaries, you can allocate funds to other qualifying beneficiaries.


You might also be interested in

Share this article

Disclosure

Last reviewed: January 1, 2023

This has been provided by RBC Global Asset Management Inc. (RBC GAM) and is for informational purposes only. It is not intended to provide legal, accounting, tax, investment, financial or other advice and such information should not be relied upon for providing such advice. RBC GAM takes reasonable steps to provide up-to-date, accurate and reliable information, and believes the information to be so when provided. Information obtained from third parties is believed to be reliable but RBC GAM and its affiliates assume no responsibility for any errors or omissions or for any loss or damage suffered. RBC GAM reserves the right at any time and without notice to change, amend or cease publication of the information.

Footer

Products

  • Mutual funds
  • RBC iShares ETFs
  • Alternative investments

Investor information

  • Fund facts (mutual funds)
  • Fund facts (RBC iShares ETFs)
  • PFIC reporting
  • Regulatory documents
  • Fund governance
  • Proxy voting
  • Unclaimed property
  • Important investor information

About RBC GAM

  • Our story
  • Media centre
  • Contact us
  • Careers

Investing

  • Ready to invest?
® / TM Trademark(s) of Royal Bank of Canada. Used under licence. iSHARES is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used under licence. © 2025 RBC Global Asset Management Inc. and BlackRock Asset Management Canada Limited. All rights reserved.
  • Privacy & security
  • Legal
  • Accessibility
  • Terms and conditions
  • Advertising & Cookies
  • About RBC
Back to top