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Understanding RESPs in Quebec

Written by: Kaleido

November 20, 2020

Becoming a parent is one of the most rewarding things in life. From the first steps to the first day of school, parents have the privilege of watching their children grow up and blossom. They also get to be there for their children as they reach an important milestone: post-secondary education.

The registered education savings plan (RESP) was created to get ready for this crucial step.  Designed to allow tomorrow’s adults to reach their full potential, in Quebec, the RESP offers many possibilities to its subscribers and beneficiaries.

You want to learn more about RESPs and grants available in Quebec? Kaleido explains everything you need to know.  

The Basics of the RESP

If you’re not familiar with the registered education savings plan, you should know that it’s an advantageous savings account which allows you to help your child pay for post-secondary education. By contributing to an RESP, you can receive government grants that will directly benefit your child.

In a nutshell, the RESP gives you another opportunity to support your children through their personal and professional development. Afterward, they choose how they make their way through life! 

Who Can Open an RESP?

Anyone who wishes to can open an RESP for one or several children. In Quebec, RESP contributions can be made by a parent, family member or loved one who wants to support the future development of a child.

How to Open an RESP?

A registered education savings plan can be opened via an RESP provider. Specialized in education savings plans for families, your provider will recommend a plan that is adapted to your situation and needs. RESPs are for everyone! Some low-income families can even benefit from one free of charge.

Enrolment in Post-Secondary Education

With Kaleido, when a beneficiary enrolls in an eligible post-secondary program1, the contributions are refunded in full to the parent2, who can then decide to give this money to the child or not. The beneficiary receives the accumulated income and grants as EAPs. 

How RESPs Work in Quebec

The Government of Quebec wants to encourage families to save for their children’s education. That’s why a provincial grant was introduced in 2007: the Quebec Education Savings Incentive (QESI). So, you receive money from the Quebec government (through Revenu Québec) in addition to the grants offered by the Government of Canada to fund your children’s education.

You should know that not all providers offer this provincial grant. Thankfully, Kaleido ensures the payment of the QESI in all of its registered education savings plans3!

Which Grants Are Available in Quebec?

When you open an RESP in Quebec, you can receive the following grants for your child:

  • CESG (Canada Education Savings Grant): 20% of the amount saved every year, up to $500 annually;
  • QESI (Quebec Education Savings Incentive): 10% of the amount contributed every year, up to $250 annually;
  • CLB (Canada Learning Bond): for low-income families, up to $2,000 for the beneficiary without having to contribute.

Based on the adjusted family net income, some families can also receive the additional CESG, which matches 10% to 20% of contributions, and the additional QESI, which matches 5% to 10% of contributions. 

What Is the Maximum Amount in RESP Grants in Quebec?

In Quebec, an RESP allows you to get up to $12,800 per beneficiary4. This amount is calculated based on the lifetime limit of each grant. With federal grants, you can get up to $7,200 (CESG) and $2,000 (CLB) and with the QESI, you can receive up to $3,600. 

The EAP amount that accumulates in your RESP will vary depending on your family income as well as how much you contribute and for how long.  

Opening an RESP in Quebec Offers Many Advantages

In Canada, the RESP is becoming more and more popular as a means to fund post-secondary education. Did you know that in 2018, nearly 450,000 young people benefited from an RESP to pursue their education? 

In 2019, a little over 50% of families in Quebec saved into an RESP in preparation for their children’s post-secondary education. Accessible and flexible, education savings plans offer a wealth of advantages for parents and future students. Discover the different types of RESPs and their advantages. 

Plans Tailored to Different Needs

When opening an RESP in Quebec, you can choose between different types of plans: 

  • The family plan: this plan allows you to add all your children as beneficiaries and to transfer the money from one child to another.
  • The group plan: with this plan, the subscribers’ savings are pooled during the contribution period. At plan maturity, each subscriber gets back their contributions and their share of accumulated income.
  • The individual plan: this plan is for one beneficiary only and offers a lot of flexibility with contributions. The subscriber can deposit and withdraw funds as needed.

Regardless of which education savings plan you choose, you’ll get reassuring support from your representative throughout your savings project and your savings will grow over time.

RESPs in Quebec: A Flexible Solution 

An RESP must be a simple, advantageous solution that gives you peace of mind. That’s why the different plans are tailored to your situation and needs. Our team is always available to discuss if you encounter financial difficulties along the way or if you wish to change your plan.

The RESP is not one-size-fits-all. With Kaleido, you choose:

  • The amount you contribute;
  • The frequency of your contributions (monthly, annual or one-time);
  • How long you want to save (2 years, 5 years, 10 years, or more).

We’re there for you the whole time and we can adapt your plan to your needs. And if your child decides not to pursue a post-secondary education, no worries! You get back all of your contributions, including the sales charges5

Helping Children Pursue An Education

The RESP is also an important factor in gaining access to post-secondary education. According to the 2019 Kaleido Barometer, 70% of students stated they were motivated to continue their education thanks to their RESP.

By opening an RESP, you invest in the future of your children; you offer them the freedom and financial security to pursue the education of their choice as they see fit.

You’re Considering the RESP and Want Personalized Advice?

Make an appointment with one of our representatives to open an advantageous, turnkey plan tailored to your family’s needs.

Meet with a representative

Legal Notes

1. Certain conditions apply. For the complete list of eligible programs, please see our prospectus.

2. Under the REFLEX Plan and the UNIVERSITAS Plan, the refund of contributions at plan maturity includes an amount equal to the sales charges of $200 per unit. Under the INDIVIDUAL Plan, the sales charges of up to $200 are not refunded. Certain conditions apply; see our prospectus.

3. Contingent on the receipt of the required grant application authorization. Certain conditions apply; see our prospectus.

4. Canada Education Savings Grant (CESG) from 20% to 40% and Quebec Education Savings Incentive (QESI) from 10% to 20%. Based on adjusted family net income. The annual limit is set at $600 for the CESG and at $300 for the QESI. The lifetime limit per beneficiary is set at $7,200 for the CESG and at $3,600 for the QESI. The Canada Learning Bond (CLB) is up to $2,000 per beneficiary and is offered for children born after December 31, 2003, from families who meet the financial criteria. Certain conditions apply; see our prospectus.

5. Savings invested in T-Bills and government bonds. Under the REFLEX Plan and the UNIVERSITAS Plan, the refund of contributions at plan maturity includes an amount equal to the sales charges of $200 per unit. Under the INDIVIDUAL Plan, the sales charges of up to $200 are not refunded. Certain conditions apply; see our prospectus.