The company that sets up your RESP is called the plan provider or promoter. RESPs from a financial institution — like a bank, trust company, credit union, caisses populaires or mutual fund dealer — work a lot like any other investment account. RESPs offered by scholarship plan dealers are set up differently and have different rules.
8 questions to ask
- What fees are you expected to pay? When do you have to pay them?
- Do you have to make regular contributions? If so, what happens if you miss a contribution?
- What investment options are available?
- When and how will payments be made from the plan?
- What kinds of post-secondary programs qualify?
- Are the plan’s rules more restrictive than the government’s rules on which programs qualify? Find out which programs may qualify.
- What happens if your beneficiary doesn’t continue with their education after high school?
- What happens if you want to cancel the plan? Is it easy to get your money out? Will you have to forfeit your earnings?
Learn more about choosing an RESP provider.
Who offers RESPs
Take a look at this list of RESP providers in Canada. It also tells you which government grants each provider offers.
4 questions to ask
- What are the fees?
- What are the rules for getting payments?
- What happens if your child doesn’t continue their education?
- What happens if you want to cancel the plan?
You have 60 days after signing your contract to cancel plans provided by scholarship plan dealers without any penalty. Be sure to read and understand the rules outlined in the short Plan Summary provided in the plan prospectus.