We C.U. when you're thinking about your child's education. That’s the time to open an RESP from The Credit Union and watch the savings grow for your child’s future.

A Registered Education Savings Plan is a tax-deferred investment that allows you to save for your child's post-secondary education. The government will pay a grant to your RESP based on the contributions made by you, the subscriber (usually a parent or a grandparent).

On the first $2,500 contributed annually (either by lump sum or regular monthly investments), a grant of 20% is paid to a maximum of $500 per year. For each beneficiary you can deposit up to $50,000 in RESP contributions over the years, PLUS the maximum lifetime grant of $7,200 for each student.

While the contributions are not tax-deductible, taxes on all income and growth in the plan are deferred until the child takes money from the plan for their post-secondary education. Since most students have a low income, little or no tax would be payable.

Contact Member Assistance or talk to your Personal Account Manager about opening up an RESP today. They'll educate you on everything you need to know.

An RESP from The Credit Union has many benefits, including:

• It’s easy to set up: Talk to us today! We'll make it simple to get started
• A great investment: An RESP is a tax-deferred vehicle that allows a subscriber (usually a parent or grandparent) to save for a child's post-secondary education
• A generous government grant: Federal Government pays 20% of the first $2,500 contributed each year (or $500) per child up to age 17, to a lifetime maximum of $7,200 to a qualifying beneficiary
• Additional grants and incentives: Available to lower income families
• Tax sheltered: Any money earned in the RESP accumulates tax-free, until it is withdrawn. After the child registers for a qualified program and withdraws the money, he or she pays taxes on the income that was earned in the RESP
• Affordable: Minimum initial investment is only $50 per month and subsequent contributions with a PAD (pre-authorized debit) are only $25 monthly. PLUS there are no administration fees
• Start now: Begin early and your child's investment will have more time to grow
• Do better: Long term investments with a high rate of return could yield your optimum savings goal
• A wide range of options: Your RESP can be in the form of daily interest savings, term deposits, and mutual funds
• No maximum contribution: Each year – a per child lifetime maximum of $50,000 (because the child will likely have little income, he or she will pay little or no tax)
• Contribute for up to 22 years: the plan must be collapsed by the end of the 26th year of the plan's existence

NOTE: Contributions are not tax-deductible. BUT the taxes on income and growth in the plan are deferred until the child takes the money from the plan

RESP PLANS

FAMILY PLAN: Two or more children, if one child decided not to go to college, the others can benefit from the extra income earned within the plan. However, certain grant monies allocated to the child who is not attending must be returned.

INDIVIDUAL PLAN: One beneficiary.