What is an RESP?

A Registered Education Savings Plan is a government approved plan for the purpose of providing post-secondary education funding for a beneficiary.

Single Plan

While a Single Plan RESP can only have one beneficiary, there are many advantages such as:

  • the beneficiary can be changed without restriction
  • anyone can open a Single Plan RESP for any beneficiary
  • the subscriber can even name himself/herself as the beneficiary
  • the beneficiary can be over 21 years old at the time the Single Plan is opened
  • contributions to the Single Plan may be made up to 21 years after the year the plan is opened

Family Plan

A Family Plan can have multiple beneficiaries, however, it also has additional requirements such as:

  • all beneficiaries must be related to the subscriber by blood or adoption
  • all beneficiaries must be 21 years old or younger when named as a beneficiary
  • contributions must end when the beneficiary turns 21 years old

Some other advantages are:

  • if any beneficiary in a Family Plan RESP does not pursue post-secondary education, the remaining beneficiaries may use those funds for their education; therefore the income and grant for the beneficiary not attending post-secondary school will not be lost
  • beneficiaries can be added/deleted/changed at any time, however, if adding a new beneficiary, he/she must be related to the original subscriber by blood or adoption

Who can contribute to an RESP and how much?

The "subscriber" is the registered owner of the RESP and can be an individual or an individual and his/her spouse. Only the subscriber can make contributions to the RESP and these contributions are not tax deductible.

Contribution limits are as follows:

  • Annual - No limit
  • Lifetime - $50,000 per beneficiary

What is the Canada Education Savings Grant?

The CESG is a grant paid by the Government of Canada to eligible RESP beneficiaries. Grant amounts are based on annual contributions and are deposited directly to the RESP. The government contributes a maximum of 20% annually on the first $2,500 deposited into an RESP for children to the end of the year in which a child turns 17. 

What does that mean? It means that you could earn up to an additional $400 per year, or $7,200 lifetime maximum, of additional education funding for each eligible child.

To qualify for the CESG, the beneficiary must:

  • have a social insurance number
  • be a Canadian resident
  • be 17 years old or younger


For additional information on the CESG, please contact any of our branches and we would be pleased to assist you. In addition, you may also wish to visit the Government of Canada's CESG website for more information.

What are the options available?

GVC Credit Union offers the following RESP options:

  • variable rate plan with no minimum deposit
  • fixed rate, non-redeemable terms from 1-5 years with a minimum deposit of $500
  • automatic monthly contribution to variable plan can be arranged
  • no setup or administration fees

Visit or contact your branch today to find out how GVC Credit Union can help you with an RESP that fits your needs.