Get the Social Insurance Numbers first
To open a registered education savings plan (RESP) and apply for the government benefits, you need a Social Insurance Number for the person who will receive the money, called the beneficiary, and one for yourself if you do not already have it. Without the beneficiary’s number you cannot apply for the grant or the bond, so sort this out before you visit a financial institution.
If a number is missing, Service Canada explains how to find, replace or apply for one. A number is also on tax slips and a past tax return. Treat it as private: share it only with the institution you choose and not through general email or web forms.
Pick the right type of plan
Any adult can open an RESP for their own child, someone else’s child, or themselves. The Government of Canada describes three types. A family plan names one or more children who are related to you by blood or adoption, such as your children, stepchildren, grandchildren or siblings, and the earnings can be shared among them. An individual plan names one beneficiary, who does not have to be related to you. A group plan is for one child, pools your savings with other children born the same year, and usually requires regular payments over a set period, with fees that may apply if you stop.
The type matters, so ask the institution to explain the options in writing before you sign. If you have one child or are saving for a niece, nephew or friend’s child, an individual plan is generally the fit. If you may have more children, ask about a family plan.
Choose a promoter and ask about fees
The promoter is the institution where you open the plan, such as a bank, credit union, investment firm or group plan dealer. You do not need a bank account to open an RESP. Ask each one which benefits it will apply for, since the Government of Canada notes that most promoters offer the Canada Learning Bond and the extra grant amounts for low and middle-income families.
Before you open the plan, ask about service fees, limits on how often you can contribute, penalties, payment options and the investments available. These vary, and they can include savings accounts, guaranteed investment certificates, term deposits, mutual funds and stocks. Speaking to more than one promoter is reasonable.
Understand the grant and the bond
The Canada Education Savings Grant requires contributions. It generally adds 20% of the first $2,500 contributed in a year, which is up to $500 a year, with up to another $100 for lower-income families and up to $50 for middle-income families. The lifetime maximum is $7,200 per child. Unused grant room can carry forward, and the grant is generally available until the end of the year the child turns 17, with extra conditions at 16 and 17. As an illustration, a $2,500 contribution could attract a $500 grant.
The Canada Learning Bond is for lower-income families, and no contribution is needed. It can pay $500 in the first eligible year and $100 for each later eligible year, up to $2,000. The caregiver must have filed tax returns and be eligible for the Canada Child Benefit, so filing on time matters. For July 2026 to June 2027, the adjusted family income threshold for a family with one to three children is $58,523 or less. The bond is paid into only one plan for each child.
Plan contributions and know the limits
There is no annual contribution limit, but there is a lifetime limit of $50,000 per beneficiary across all plans. Going over it triggers a tax of 1% a month on your share until the excess is withdrawn. Contributions are not tax-deductible, and the money earns tax-free growth inside the plan.
If more than one plan exists for the same child, the grant goes into the plan with the earliest contribution, so tell relatives such as grandparents what has been contributed. You can contribute for up to 31 years after opening, and you generally have up to 35 years from opening to use the money.
Know what happens when the money comes out
When the student enrols in an eligible program, the subscriber asks the promoter for an educational assistance payment. It includes the grant, the bond and earnings, and the student reports it as income, which is often small or nil during studies. Your own contributions can be taken out tax-free.
If the plan is not used, your contributions come back to you and are not taxed, the grant and bond generally must be returned, and the earnings can be taxed at your regular rate plus 20% unless they are moved to an RRSP within the allowed limit or another permitted option. Discuss this with an accountant before you close a plan.
Your conversation checklist
- Social Insurance Number for the beneficiary and for you
- Decide whether to save for your child, another child or yourself
- Compare family, individual and group plan types
- Ask promoters about fees, contribution rules and investments
- Confirm the promoter applies for the grant and bond
- File tax returns on time to keep benefits available
- Track contributions across all plans for the same child
- Tell other contributors what has already been paid in
- Note the $50,000 lifetime limit and the grant room used
Further reading & sources
- Government of Canada: Open an RESP and apply for benefits
- Government of Canada: How much money benefits could add to the RESP
- Government of Canada: Managing the RESP, taxes and transfers
- Government of Canada: Social Insurance Number
Tax rules and administrative requirements can change. Check the applicable official guidance and confirm your circumstances with a qualified adviser. This guide is not an assessment of your filing, payment or legal obligations.