About the account

Q: Do I have to open my RESP account with the same bank as my other accounts?

A: No, you can open an RESP account with any bank and you are not required to open any other accounts in addition to the RESP. Keep in mind the account fees will vary between banks. Go to see a list of banks that offer no-fee RESP savings accounts.

Q: Will this affect the other Government benefits I receive, like my disability benefits?

A: Not at all. Having an RESP and receiving the Canada Learning Bond and the Canada Education Savings grant will not affect any other Government benefits.

Q: I currently have debt – can credit and collection agencies access the money?

A: Yes, credit and collection agencies will be able to access the money that you contribute, but not the Government contributions. If you are concerned that you have debt, you can still open a savings account for your child and apply for the Government grants. Do not add any of your own money. The Government money will grow with interest and your child will be able to withdraw this free money when they are ready to go to university.

Q: What if my child is not eligible for the Canada Learning Bond because they were born before 2004?

A: You can still open an RESP for your child and make contributions of your own money which will be matched between 20-40% by the Government through the Canada Education Savings Grant. These savings will then grow with interest tax-free.

Q: Can I take money out if I need to before my child is ready to go to school?

A: The availability of your money depends on the type of savings investment you choose. If you open an RESP savings account with a bank, you can withdraw the money you put in at any time, but any CESG grants that matched those contributions will be returned to the Government. You will not be able to withdraw the Government grant money, including the Canada Learning Bond until the child is enrolled in a post-secondary school. For any other type of RESP investment, make sure you ask about fees for withdrawals before you sign up if you think you may need to access your money early.

Q: Can the Government take their money back?

A: If you withdraw money that you put in, the Government will take back any CESG grants that matched those contributions. The Canada Learning Bond will only return to the Government if you close the account.

Q: Can anyone else make contributions?

A: Most RESP accounts have one subscriber who can make direct deposits. Contributions from other people, such as other family members or the child themselves, can be given to the subscriber to deposit.

Q: Are there any limits on how I can use the money in the RESP account?

A: There are a few limits on how you can use the money the Government puts in your child’s RESP account, including the CLB and CESG money.

The Money From The Government:

The Government money is called an ‘Educational Assistance Payment’ (EAP) and includes the money provided by the CLB, the money provided by the CESG, and any interest earned on this CLB/CESG money.

• You can use this money to pay for post-secondary school expenses like tuition, books, and transportation
• Your RESP provider may provide you with a list of allowable expenses that the money can be used for, or they may ask for receipts for school purchases to prove that the money is being spent on educational expenses.

Any of your money that you have put into the account:

There are no limits on how you and your child can use the money you have added to the RESP account from your own pocket.

Q: What if my child decides not to go to post-secondary education?

A: You have three options:

1. WAIT

   The RESP will stay open for 36 years. Even if your child does not go to post-secondary school right away, he or she will have lots of time to make up his or her mind. The RESP will continue to earn interest!

2. TRANSFER MONEY FROM THE RESP TO A SIBLING

   If one child does not go to a post-secondary school, you can transfer most of the money to their brother or sister, except for the CLB.

3. CLOSE THE RESP

   1. You will get your money back, depending how you invested it.
   2. Government money returns to the Government.
   3. You can keep the money earned on interest if:
      1. The RESP has been opened for 10 years
      2. Your child is 21 years old or older
      But you will have to pay tax on it. Transferring the earnings to your RRSP may be an option to reduce how much income tax is owed. Speak to your financial provider for advice.

About the process

Q: What do I need to get the free money?

A: You will need to bring your SIN, your child’s SIN and your child’s birth certificate, plus any other identification that your chosen financial institution (i.e. bank) requires. At your RESP appointment, ask the provider to help you apply for the Canada Learning Bond and the Canada Education Savings Grant. See for more details.

Q: How long will it take if I choose to do the whole process in one go?

A: Completing the entire process will typically take one full day. Aim to go to Service Canada in the morning and make an appointment with a bank in the afternoon. Wait times will vary at Service Canada but the appointment at the bank will take about an hour. Make sure you get child care for the full day – there’s a chance you might not be finished until after 3pm.

Q: How long do I have to wait to get my SIN?

A: Service Canada will issue a SIN for you and your child on the spot.

Q: How should I dress for the day?

A: You should wear something that is comfortable but tidy. You may be standing on your feet for most of the day or walking long distances if you’re taking transit so make sure you’re wearing comfortable footwear.

Q: What do I do with my kids? Should they come with me?

A: It is not necessary for your children to accompany you. If possible, you should arrange for someone to take care of your children while you go through the process. There are no children’s play areas at Service Canada or most banks. If you cannot leave your children with a minder, try to bring a friend with you to watch over and play with them at each location.

Q: Do I need to bring a friend as a reference?

A: You might like to bring a friend to keep you company if you can, but it’s not necessary to bring anyone else if you are the child’s primary caregiver.

Q: I am not the child’s parent, can I still open an RESP for them?

A: Yes! Anyone can set up an RESP for a child. The child may be your niece, nephew, grandchild, or family friend. A child can have multiple RESP accounts opened for them but can only apply to the Canada Learning Bond (CLB) once. If you are applying for a CLB, the primary caregiver must accompany you to provide their signature and SIN.

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If your question is not answered here, you can check out more questions and answers at the CanLearn website.