“I would like to set up an RESP for my baby – what is the difference between setting it up at a bank or other financial institution?”
Submitted by: Pawan
Different financial institutions offer different types of Registered Education Savings Plans (RESPs). You can open an individual plan, a family plan or a group plan:
- Individual plans are intended to pay for the education of one beneficiary.
- Family plans can have more than one beneficiary, but the beneficiaries must be related.
- Group plans are only offered by scholarship plan dealers. They tend to have higher fees and more restrictive rules than other plans. Read the plan summary document to understand the requirements of the plan before investing your money.
Learn more about different types of RESPs, and speak to a financial advisor to learn which option may be right for your family. Once you set up an RESP, use our RESP Savings Calculator to estimate how much you may be able to save for your child’s education.