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Investment FAQs

Registered Education Savings Plan (RESP)

Select Category: General Opening an Account Contributions Withdrawals Managing Your Investments Online

General

The Registered Education Savings Plan (RESP) is a tax-sheltered plan that helps you save for a child’s post-secondary education. An RESP combines flexibility, tax-deferred investment growth and direct government assistance to help you reach your education savings goals for your children.

An RESP can be set up for any “beneficiary,” including your children, grandchildren, nieces, nephews or family friends. Each beneficiary must be a Canadian resident and have a Social Insurance Number (SIN), which can be obtained from a Service Canada.

An RBC RESP can hold a variety of investments, including Guaranteed Investment Certificates (GICs), mutual funds, portfolio solutions and savings deposits. You can also hold stocks and bonds through RBC Direct Investing™ and RBC Dominion Securities

In addition to the Canada Education Savings Grant (CESG), there are Federal and Provincial government incentives available to help lower- and middle-income Canadian families save for a child’s education if eligible. See RESP Grants and Bonds.

Opening an Account

Please visit your branch to open a new RESP. We recommend booking an appointment ahead of time by calling us at 1-800-769-2511.

Contributions

You can contribute any amount to an RESP, subject to a lifetime limit of $50,000 per beneficiary. You can contribute to an RESP for up to 31 years, and the plan can remain open for a maximum of 35 years.

You can:

You can manage pre-authorized contributions (PACs) through the RBC Mobile app or RBC Online Banking.

To use the RBC Mobile app, sign in and follow the steps below:

  • From the Accounts screen, tap your RESP.
  • Select “Set Up Pre-Authorized Contribution” or “View Pre-Authorized Contribution.”
  • Follow the on-screen instructions to complete your transaction.

Note: You cannot pause PACs through the RBC Mobile app.

To use RBC Online Banking, sign in and follow the steps below:

  • From the Accounts Summary page, select your RESP and click “Manage Pre-Authorized Contributions” from the left menu.
  • Select “Modify” to make changes and follow the on-screen instructions.

When you’re ready to resume contributions, simply Sign in to RBC Online Banking to access your account and click “Manage Pre-Authorized Contributions” once again.

Changes to your contributions will take effect in two business days.

If you don't contribute enough to receive the maximum $500 grant in a given year, the unused entitlement can be carried forward to the next year. Families with a net family income below $45,282 in 2016 (the threshold is adjusted every year) may qualify for a special enhanced CESG of 40% on the first $500 contributed each year.

Yes! An RBC RESP Gift Cheque can be used to invest in a child’s future. RESP Gift Cheques can be deposited into new or existing RBC RESP accounts.

Withdrawals

Once an RESP beneficiary is enrolled in a qualifying post-secondary education or training program, the accumulated income, grants and bonds within the RESP can be paid out to the student as an Educational Assistance Payment (EAP) at the discretion of the subscriber (person who opened the RESP).

An RESP beneficiary must claim all Educational Assistance Payments (EAPs)—as income on his or her tax return in the year that they are received. Usually, this results in little or no tax since students tend to be in the lowest tax bracket and can claim tax credits for the personal amount and education-related expenses. Contributions can be withdrawn tax-free.

Managing Your Investments Online

You can view your RESP account information, balances, Investor Profile, transaction history and download documents through RBC Online Banking.

You can:

You can manage pre-authorized contributions (PACs) through the RBC Mobile app or RBC Online Banking.

To use the RBC Mobile app, sign in and follow the steps below:

  • From the Accounts screen, tap your RESP.
  • Select “Set Up Pre-Authorized Contribution” or “View Pre-Authorized Contribution.”
  • Follow the on-screen instructions to complete your transaction.

Note: You cannot pause PACs through the RBC Mobile app.

To use RBC Online Banking, sign in and follow the steps below:

  • From the Accounts Summary page, select your RESP and click “Manage Pre-Authorized Contributions” from the left menu.
  • Select “Modify” to make changes and follow the on-screen instructions.

When you’re ready to resume contributions, simply Sign in to RBC Online Banking to access your account and click “Manage Pre-Authorized Contributions” once again.

Changes to your contributions will take effect in two business days.

You can switch investment product types within your RESP through RBC Online Banking.

Funds will be available on the next business day following the date on which you have instructed us to redeem your GIC, or in the case of RBC Income Builder GIC, following the date on which a payment is made from the GIC.

Other Notable Disclosures:

  • Interest in a GIC will be calculated counting the first but not the last day of the term.
  • There is no fee charged for a purchase of GIC. If you transfer your GIC out to another financial institution, there will be a transfer out fee of $150 charged (applies to both registered or non-registered GICs – transfer out fee for non-registered GICs came into effect August 1, 2022)
  • You may provide us with instructions as to what to do with your GIC proceeds upon maturity. If your GIC is automatically renewed, you may cancel it upon renewal within 10 business days from the issuance (renewal) date, and if you do, your principal will be returned, but no interest will apply from the issuance to the cancellation date.
  • The GIC Client Agreement can be found at https://www.rbcroyalbank.com/dms/investments/clientacknowledgementforms.html. This GIC Client Agreement may be changed at any time, on notice to GIC holders.
  • For more information and disclosures regarding RBC Equity Linked GICs, see: RBC Equity-Linked GICs page.

Mutual Funds are sold by Royal Mutual Funds Inc. (RMFI). There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Please read the Fund Facts/prospectus before investing. Mutual fund securities are not insured by the Canada Deposit Insurance Corporation. For funds other than money market funds, unit values change frequently. For money market funds, there can be no assurances that a fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in a fund will be returned to you. Past performance may not be repeated. RMFI is licensed as a financial services firm in the province of Quebec.


Financial planning services and investment advice are provided by Royal Mutual Funds Inc. (RMFI).  RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.