In this article:
Overview
A Registered Education Savings Plan (RESP) is a tax-free account designed to help you save for a child's education. It allows investments to grow tax-free, and the Canadian government may also contribute to it through grants, such as the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). We'll automatically apply for these grants on your behalf each year.
We donate a portion of our profits from our managed portfolio RESPs to the Wealthsimple Foundation, a registered charity that helps young Canadians learn about money and access higher education.
Types of RESPs
You can open a family or individual RESP:
-
Family RESP: Save and claim government grants for one or more children under age 21. You must be the child's parent, legal guardian, or primary caregiver.
Note: Blood-related grandparents and siblings can only open a family RESP in a fully managed Classic portfolio. They must contact our support team for help setting up this account. - Individual RESP for yourself: Save for your own education.
- Individual RESP for someone else (coming soon): Save for anyone besides yourself. You don't need to be related.
Learn which types of RESPs you can open as a self-directed investing account or Wealthsimple portfolio:
| RESP type | Available as a self-directed investing account* | Available as a Classic portfolio |
|---|---|---|
| Family RESP | Yes | Yes |
| Individual RESP for yourself | Yes | Yes |
| Individual RESP for someone else | Coming soon | Coming soon |
How to open an RESP
Make sure you have the following information before opening an RESP for a beneficiary:
- The child's full legal name
- The child's date of birth
- The child's Social Insurance Number (SIN)
Follow these steps to open an RESP:
- Log in to the Wealthsimple app
- From the Home tab, scroll down and tap Add or move account
- Select Open a new account
- Choose RESP from the options
- Choose what you'd like to invest in
- Choose to open either a single-owner or joint-owner account
- Follow the prompts to finish setting up your RESP
- Log in to your Wealthsimple profile
- Select + Add an account from the Home page
- Select the Investing tab
- Choose RESP or Joint RESP from the options
- Choose what you'd like to invest in
- Follow the prompts to finish setting up your RESP
Supported grants
Review the grants we support at Wealthsimple:
| Grant | Available at Wealthsimple |
|---|---|
| CESG | Yes, we apply on your behalf. |
| Additional CESG | Yes, we apply on your behalf. |
| CLB | Yes, we apply on your behalf. |
| B.C. Training and Education Savings Grant (BCTESG) | Yes, follow the prompts in your account to apply. |
| QESI | Coming soon. |
Frequently asked questions
How many RESPs can I open?
You can open
- Up to 10 portfolio (managed investing) RESPs
- Up to 8 self-directed investing single-owner family RESPs
- Up to 8 self-directed investing joint-owner family RESPs
- Up to 8 self-directed investing individual RESPs for yourself
Why is my SIN required to open an account with Wealthsimple?
All registered accounts (such as a TFSA or RRSP) must be registered with the CRA. In order to register these accounts with the CRA, we require your SIN. Additionally, all non-registered accounts require that we verify your identity with a third-party credit reporting agency to follow FINTRAC identity verification rules, which also requires your SIN.
Can I open an RESP for a child who lives outside of Canada?
No, RESPs are accounts created by the Canadian government for residents of Canada. If a child doesn't reside in Canada, they're unable to be the beneficiary of an RESP.
What information do I need to open an Individual RESP for myself?
You'll need your full legal name, your social insurance number (SIN), and your date of birth. If you're 18 years old and live with your legal guardian (usually your parents), you'll also need the name and email of one of your legal guardians.
Can I convert my Individual RESP into a Family RESP?
No. However, you can create a new Family RESP with the beneficiary listed on the Individual RESP, and then have the holdings transferred over to the new account. Once this has been done, you can close your original Individual RESP and make contributions going forward to your new Family RESP. In order to do this, please contact our support team.
Who is considered the primary caregiver (PCG) for my RESP?
The primary caregiver is the person who receives the Canada Child Benefit (CCB) - the monthly payment the government makes to families to help with the cost of raising children. You can find out more about who is considered the primary caregiver on the Government of Canada website.
Why is "no" checked off next to Parent/Legal Guardian for my name when I am the beneficiary's parent?
The government transactions only have one field for the Legal Guardian, which is why when you fill out the online application, you're restricted to inputting just one legal guardian/custodial parent. This information has no effect on the government application and it doesn't represent your familial situation in any way.
What are the fees for an RESP with Wealthsimple Portfolios?
It's free to open an RESP in a Wealthsimple Portfolio. If you're eligible for and receive the CLB grant, we'll also waive our management fees on your RESP account. Wealthsimple's standard management fee is 0.5%. For accounts over $100,000, this fee drops down to 0.4%. You can learn more about our fees.
Can I add a co-owner to my RESP?
You can open a joint family RESP, which allows you to add a spouse or common-law partner as a co-owner when you initially set up the account. Once the account is open, you can't add a co-owner to your existing account. However, if you contact our support team, we can help you open a new co-owned family RESP and transfer the funds from your initial account to the new one. We'll invite your co-owner by email to set up a Wealthsimple account if they don't already have one.
Once their profile is set up, they can Review agreements under the RESP to sign off on the agreements. If your co-owner already has a Wealthsimple account, they can log in to their Wealthsimple profile and Review agreements under the RESP to sign off on the agreements.
Can I hold USD in a self-directed RESP?
Yes, you can hold USD in single and joint-owner self-directed RESPs if you have an active USD subscription.
Can I set up an internal transfer between my Wealthsimple RESPs?
Yes, though you must wait until all grant payments are deposited into your account before initiating a transfer out of your self-directed RESP. This ensures we comply with government grant regulations and avoid any loss of grant eligibility. We recommend waiting 6-8 weeks after making a deposit before initiating a transfer.
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