If your goal is to save for education, then you should definitely prioritize the RESP for one simple, undeniable reason: the grant money! That’s right, the RESP is the ONLY financial product eligible for substantial education savings grants from the federal government, and in some cases (such as Quebec), from the provincial government as well―making it an investment that truly pays off!
For instance, a $100 contribution will attract 20% to 60% in grant money.1 You won’t get that kind of return in a regular savings account or a TFSA!
What’s more, both your contributions and the grants received will generate income until your beneficiary enrols at the post-secondary level!
1. Based on your adjusted family net income and province of residence. Certain conditions and limits apply. See our prospectus.
* Our lawyers insist that we mention the identities marked with an asterisk are fictitious and only serve to present the most frequently asked questions. We understand your concerns well, so we took the lead. The answers, for their part, are all very real.