No matter how old your child is, it’s never too late to start saving with an RESP. However, the earlier you contribute, the more your investment will grow as interest will accumulate on both your contributions and the government grants you receive over a longer period of time. That’s why it’s a good idea to start investing now for your child’s future.
Contributions to the Diploma RESP are made through monthly payments of as little as $25 a month, until December 31 of the year in which the beneficiary designated in the plan at issue reaches 17 years of age.
Additional lump-sum contributions (minimum: $100) and increases to the contribution amount can be made at any time. Note that the contributions made as a subscriber are not deductible from your taxable income, and therefore will not be taxable upon withdrawal.
The cumulative contribution limit is $50,000 per beneficiary. This means that a parent and a grandparent, for example, can both subscribe to separate RESPs for the same beneficiary. By making sure they do not exceed the total allowable maximum, they avoid paying penalty taxes.
Contributions can be made to the plan for 31 years from the effective date of the plan, and the RESP must be fully liquidated no later than 35 years after it is set up..
To reward the efforts you’ve made to ensure your child’s future, we will pay an education bonus into the plan once your monthly deposit commitment is fulfilled.
This bonus can reach up to 15% of the total monthly payments made and is based on the beneficiary’s age when the plan was created. This bonus will be added to the amounts accumulated in the plan and will be paid as an Educational Assistance Payment (EAP). The earlier you invest, the more you save and the higher your Diploma education bonus will be.
By subscribing to the Diploma RESP, you are making a commitment: to create an education fund that will allow a child to pursue a post-secondary education.
This commitment entitles you to an education bonus of up to 15% of your monthly contributions to the plan.
Furthermore, to help you keep your commitment and achieve your savings objective, two additional benefits are offered with the RESP to help you ensure the continuity
of your contributions in the event of death or disability
— Contribution in the event of the insured’s death
(subscriber) (CIDE)
— Contribution in the event of the insured’s disability
(subscriber) (CID)
These benefits give you the assurance that in the event of death or disability, the Company will continue to make monthly contributions on your behalf to fulfil your commitment.
The inclusion of these benefits also ensures the continuity of CESG payments into your plan in the event of death or disability, as well as eligibility for the education bonus once your commitment has been fulfilled.
So, thanks to these two benefits and for just a few dollars a month, you can enjoy peace of mind knowing that the child(ren) in your life will be able to pursue a post-secondary education, no matter what!