How to use this page: Read the simplified explanation first, then use the official links below before acting.
Plain-language summary
- Canada.ca says there are three main RESP types: family, individual, and group. The right choice depends on who the beneficiary is, how flexible you need the plan to be, and whether you can commit to the provider's rules.
- A family plan can cover more than one child, but the children must be related to the subscriber by blood or adoption. Family plans let earnings be shared among eligible children in the plan.
- An individual plan covers one beneficiary and does not require the subscriber to be related to that beneficiary. A group plan also covers one child, but it usually expects regular payments and has its own contract rules.
- To open an RESP, Canada.ca says you need a Social Insurance Number for the beneficiary and for yourself if you do not already have one. The promoter then helps you open the plan and apply for CESG, CLB, and any supported provincial incentives.
Action steps
- Start with the beneficiary situation before comparing brands: one child, multiple related children, or a child you are not related to can point you toward different RESP types.
- Get the beneficiary's SIN and make sure the subscriber also has one before starting the application.
- Ask the promoter exactly which incentives it supports today, including CLB, additional CESG, and any provincial incentive your family may qualify for.
- Before signing, ask for the fee schedule, contribution rules, withdrawal rules, transfer rules, and any penalties in writing.
- After the account is opened, check that benefit applications were actually submitted and watch for deposits over the next several weeks instead of assuming they were automatic.
Caveats to watch
- A family plan is not just 'an RESP for siblings.' Canada.ca says the beneficiaries must be related to the subscriber by blood or adoption, and it lists nieces, nephews, aunts, uncles, and cousins as not being blood relatives for this purpose.
- A group plan can work very differently from a bank or brokerage RESP. Canada.ca says each group plan has its own rules, usually expects regular payments, and may charge fees if payments stop.
- Not every RESP promoter supports every benefit. The safest question is not whether a grant exists, but whether this specific promoter will apply for it in this specific account.
- The Canada Learning Bond does not require personal contributions, but CESG does. Families sometimes delay opening an RESP because they cannot contribute yet, even though that delay can postpone CLB access.
- The government page says benefits can take several weeks to appear. If nothing shows up, the family should follow up rather than assuming the application is still moving.
Examples
Example: two siblings and one shared family plan
Parents want one RESP for two children. A family plan may fit because both children are related by blood or adoption and the plan can name more than one beneficiary. The parents still need to confirm that the provider supports the grants they want and to understand how future withdrawals will be handled.
Example: grandparent opening an RESP for one grandchild
A grandparent wants to save for one grandchild and keep the setup simple. An individual plan may be easier to understand than a group plan because it covers one beneficiary without requiring group-plan payment rules. The grandparent should still ask whether the promoter supports CLB and additional CESG applications where those benefits depend on the caregiver information.
How to think about the three RESP types
- Family plans are mainly about flexibility across more than one related child.
- Individual plans are usually the cleanest option when there is only one beneficiary or the subscriber is not related to the beneficiary.
- Group plans are contract-heavy products. They may appeal to families who want the provider to handle the investing, but they require closer review of fees, payment commitments, and plan-specific rules.
Questions to ask before you sign
- Do you offer CLB, additional CESG, and any provincial incentive my child may qualify for?
- What RESP types do you offer, and what are the main tradeoffs of each in your own contract?
- Do I need to make regular payments, and what happens if I stop or reduce them?
- What fees apply for opening, managing, withdrawing from, transferring, or closing the RESP?
- Can you give me all of this in writing before I sign?