Registered Education Savings Plan (RESP)

As parents, you want nothing more than to see your children grow up and live a successful and fulfilling life. So how do you ensure this dream will become a reality? You have to start investing in their future. And that starts with an investment in one of the biggest ticket items in their lives – a post-secondary education.

A Registered Education Savings Plan (RESP) can help you get there easier and quicker. It is an inexpensive step towards your child’s bright future. RESP is a savings vehicle that allows subscribers such as parents, grandparents or other relatives to save for your child’s post-secondary education.



Take advantage of powerful government incentives

You are eligible to receive government Grants. The federal government adds to your RESP savings each year through the Canada Education Savings Grant. The CESG grants up to a lifetime maximum of $7,200 per child, plus, depending on income eligibility, other bonds may be available.

Protection from the spiraling costs

The Cost of university is expected to rise 13% on average over the next four years. You can use the money on anything your child needs for school, such as tuition, books and living expenses).

Virtual Brokers’ Dividend Purchase Plan (DPP) shares are bought automatically on the market using the dividend proceeds (as opposed to obtaining shares through the transfer agent). The cost is $1.00 per month for each account with stocks enrolled for DPP.

Your RESP grows tax free

The savings in RESP account grows tax free as long as it remains in the account. You don’t have to pay tax on the interest, dividends or capital gains that you earn. That means more money for your children when they are off to college or university.

Withdraw funds when needed

Once you have your child’s proof of enrollment in a post-secondary education, you can start to withdraw the money required. Any grants and investment returns will be taxed.

You have flexibility

There is no minimum contribution or annual maximum contribution, although there is a maximum of $50,000 lifetime maximum allowed. You contribute the amount you can afford and benefit from compounded growth. There are two types of RESPs you can choose from: an individual plan for each child, or a family plan if you have more than one child.

Opening an RESP account at Virtual Brokers is a simple, straightforward process.

Step 1: Print, fill out and sign the appropriate application forms, and mail to Virtual Brokers.

Step 2: Virtual Brokers will then review your application documents and notify you via email of any missing information.

Click here to save or print all RESP forms

To view our Terms and Conditions, please click here.

BBS is also a participant of the Toronto Stock Exchange (TSX), the TSX Venture Exchange (TSX-V), the Canadian National Stock Exchange (CNSX), Alpha, Pure, Chi-X, and Omega. VB specializes in providing outstanding trade execution services to investors, traders and fund managers who demand excellence.