RBC RESP-Matic^®

With an RESP-Matic, you contribute to a Registered Education Savings Plan (RESP) regularly and automatically.

Here are a few reasons to start an automatic savings plan today:

• Convenience. Your contributions are automatically debited from your bank account at RBC Royal Bank^® or another financial institution.
• Flexibility. You decide how much and how often you want to contribute—weekly, monthly, etc.
• Growth Potential. As the chart⁽¹⁾ illustrates, even small monthly RESP contributions add up quickly over periods of 10, 15 and 21 years when they are supplemented by the Canada Education Savings Grant (CESG).

1) Calculations are for illustrative purposes only and are not intended to reflect future values or returns on investment from any mutual fund investment. Based on 7% annual compound return, these calculations also assume that the contributions are made at the beginning of every month, up to a lifetime maximum of $50,000 per child.

Government Grants and Incentives

Various government grants and incentives make a Registered Education Savings Plan (RESP) one of the best ways to save for your child’s education:

• Canada Education Savings Grant (CESG): In general, RESP beneficiaries under the age of 18 are entitled to receive an extra 20% through the CESG. For the first $2,500 you contribute each year to an RESP, the government will match 20% of your contribution—up to $500 per year (to a maximum of $7,200) plus possible catch-up grants.
• Canada Learning Bond (CLB): A $500 CLB is provided for children of families who are entitled to the National Child Benefit Supplement and who are born after December 31, 2003. These children may also qualify for CLB instalments of $100 per year until age 15, as long as they receive the National Child Benefit Supplement. The total maximum CLB payable per child is $2,000. There is no requirement to make RESP contributions in order to qualify for the CLB.
• Quebec Education Savings Incentive (QESI): The QESI is a tax credit available for Quebec resident beneficiaries under the age of 18. Annual RESP contributions of up to $2,500 are eligible for a basic tax credit of 10%. Lower-income families are eligible for an increased tax credit (5% or 10%) on the first $500 of annual RESP contributions.
• Alberta Centennial Education Savings (ACES): The ACES Plan contributes $500 to the RESP of any child born to an Alberta resident after December 31, 2004. An additional grant of $100 is paid when the child reaches age 8, 11 and 14, provided he or she is in school. The total ACES grant is $800 and can be shared among siblings.

RBC Target Education Funds

One fund. One date. One goal.
RBC Target Education Funds are a smart and easy way to save for your child’s post-secondary education. They are designed for anyone who is uncertain of the best way to invest or who does not have the time to do it themselves. To start saving, you simply select the fund that is closest to your child’s target education date.

A portfolio designed to grow and then preserve capital
RBC Target Education Funds are made up of a portfolio of RBC Funds and feature an asset mix that evolves over time, with a greater weighting in equities in the early years and a more conservative asset mix favouring fixed income investments as the child's target education date approaches. The advantage is an investment that provides growth potential up front to help keep pace with the rising cost of education and, as the target date approaches, each fund becomes more conservative, reducing both volatility and the potential for erosion of capital.

Individual and Family RESPs

At RBC Royal Bank^®, you can choose from either an individual RESP with one beneficiary (who does not have to be related to you) or a family RESP, which lets you name one or multiple beneficiaries. The beneficiaries under a family RESP must be children or grandchildren related to you by blood or adoption.

One of the main advantages of a family RESP is that the funds in the plan do not have to be shared equally among the beneficiaries, giving you more flexibility when it comes to making withdrawals.

Catherine Clarke, Moncton, NB

As a single mom, I found it difficult to save funds for retirement, let alone education for my son. However, because the incentive was so attractive, 20% from the start, I could not pass the opportunity on saving for Steve's education. I started the plan when he was 8 years old and only set aside a minimal amount. Because he chose to attend a 2 year program in college and also because I had set funds aside in the RESP, I was able to completely pay his education. I was very pleased to be able to do this because he did so well in college that it was my gift to him for a job well done. I was even more proud when he said thank you for all the support and thank you for letting him graduate without student loans like many of his friends......never think that a little is not enough!

James Ingle, Alberta

Having an RESP helped me to graduate debt free from a professional program. Being debt free helped to remove restrictions after university of where I could go and what I could do because I did not have to worry about paying down large amounts of debt.

Kenneth Boudreau, New Brunswick

The prospect of entering your 6th year of study and not having to worry about student loans is very rare but RBC's RESP allowed me to finance my tuition, books and other school related expenses each of these years allowing me to participate in an exchange semester in Europe along with other school related programs.