Registered Education Savings Plan (RESP)
RESPs are a smart way to save for your child’s future—offering tax-sheltered growth, valuable government grants, and the confidence of knowing you’ll be ready to support their dreams when it’s time for college, university, or a trade.
Tax-Free Savings Account (TFSA)
Just like it sounds, a TFSA is a savings account where your investment gains grow tax-free. You can withdraw money anytime to use for education or other life goals. It’s an ideal way for students to save beyond their RESP, especially when planning for postgraduate studies.
Investment Account
(Non-Registered)
With an Investment Account, there’s no limit to your savings goals. It offers maximum flexibility and unlimited contributions, so you can grow your money for anything—like post-secondary education or any other big plans.
Which accounts are right for you?
Compare RESPs, TFSAs, and Investment Accounts to see which fits your education savings goals best.
| Plan/account |
Registered Education Savings Plan (RESP) |
Tax Free Savings Account (TFSA) |
Investment Account (Non-Registered) |
|---|---|---|---|
| Best for | Education savings | Flexible, tax-free savings | Flexible, easy-to-access investments |
| Uses | Post-secondary education | Any purpose, including post-secondary education | Any purpose, including post-secondary education |
| Unique benefits | Up to $7,200 in government grants (CESG) and tax-sheltered growth. Provincial grants may also be available | Tax-free growth | Maximum flexibility to contribute and withdraw funds |
| Who can open? | Parent/guardian/relative/ friend, etc. (Child needs SIN) | Anyone 18+ | Anyone 18+ |
| Contribution limits | $50,000 lifetime per child | $7,000 for 2025 (plus carry-forward unused contributions from previous year) or the annual contribution limit set by CRA | No limits |
| Rules complexity | High | Medium | Low |
| Withdrawals | For education only (proof of enrolment required) | Anytime, no restrictions. Conditions apply | Anytime, no restrictions |
| Taxable withdrawals | Yes (grant/investment earnings taxed at beneficiary/student’s taxable income rate; contributions returned tax-free) | No | Yes. Investors should get tax advice |
| Flexibility of withdrawals | Complicated (requires proof of enrolment). Conditions apply | Anytime, no restrictions | Anytime, no restrictions |
| Tax-deductible contributions | No | No | No |
| End date | Must close within 35 years | No time limits | No time limits |
| Learn about RESPs | Learn about TFSAs | Learn More |
| Plan/account |
Registered Education Savings Plan (RESP) |
|---|---|
| Best for | Education savings |
| Uses | Post-secondary education |
| Unique benefits | Up to $7,200 in government grants (CESG) and tax-sheltered growth. Provincial grants may also be available |
| Who can open? | Parent/guardian/relative/ friend, etc. (Child needs SIN) |
| Contribution limits | $50,000 lifetime per child |
| Rules complexity | High |
| Withdrawals | For education only (proof of enrolment required) |
| Taxable withdrawals | Yes (grant/investment earnings taxed at beneficiary/student’s taxable income rate; contributions returned tax-free) |
| Flexibility of withdrawals | Complicated (requires proof of enrolment). Conditions apply |
| Tax-deductible contributions | No |
| End date | Must close within 35 years |
| Learn about RESPs |
| Plan/account |
Tax Free Savings Account (TFSA) |
|---|---|
| Best for | Flexible, tax-free savings |
| Uses | Any purpose, including post-secondary education |
| Unique benefits | Tax-free growth |
| Who can open? | Anyone 18+ |
| Contribution limits | $7,000 for 2025 (plus carry-forward unused contributions from previous year) or the annual contribution limit set by CRA |
| Rules complexity | Medium |
| Withdrawals | Anytime, no restrictions. Conditions apply |
| Taxable withdrawals | No |
| Flexibility of withdrawals | Anytime, no restrictions |
| Tax-deductible contributions | No |
| End date | No time limits |
| Learn about TFSAs |
| Plan/account |
Investment Account (Non-Registered) |
|---|---|
| Best for | Flexible, easy-to-access investments |
| Uses | Any purpose, including post-secondary education |
| Unique benefits | Maximum flexibility to contribute and withdraw funds |
| Who can open? | Anyone 18+ |
| Contribution limits | No limits |
| Rules complexity | Low |
| Withdrawals | Anytime, no restrictions |
| Taxable withdrawals | Yes. Investors should get tax advice |
| Flexibility of withdrawals | Anytime, no restrictions |
| Tax-deductible contributions | No |
| End date | No time limits |
| Learn More |
Use our calculator to see how our accounts can help you reach your education savings goals.