RESP (Registered Education Savings Plan)

Savings Accounts

A savings plan for your child's education where the government adds free money on top of your contributions. Contribute up to $2,500 per year and get $500 free from the government (a 20% match). Lifetime maximum of $50,000 per child.

Related Terms

TFSA (Tax-Free Savings Account)

A special savings account where your money grows tax-free and you can take it out anytime without paying taxes. Think of it like a magic piggy bank where whatever you earn inside stays yours completely. Available to Canadians 18 and older with an annual contribution limit ($7,000 in 2025).

RRSP (Registered Retirement Savings Plan)

A retirement savings account where you get a tax refund when you contribute, but you pay tax when you withdraw in retirement. Your money grows tax-free inside the account until you take it out. The government is basically giving you a discount now if you promise to save for later.

FHSA (First Home Savings Account)

A new account (launched in 2023) that combines the best features of TFSA and RRSP for first-time home buyers. You get a tax refund when you contribute AND you can withdraw tax-free for your first home. Maximum $40,000 lifetime contribution, $8,000 per year. Unlike RRSP, you must contribute by December 31. There is no 60-day grace period.