Are you thinking about opening a RESP to save up so you can send your child to their dream school? Opening a Registered Education Savings Plan is very easy. You can open an RESP yourself or jointly with your spouse.
Banks, credit unions, investment dealers and mutual funds companies can offer these plans. You need to choose the right financial institution for your plan. Making contributions should be easy, you should have access to quality customer service and you should have a convenient way to check the balance of the plan. Ask a few questions to find out how your child will be able to get the money out of the saving plan when the time to pay for college comes.
The most convenient way to open an RESP and to start saving up for your child’s education is to open one through the financial institution Heritage RESP or currently use. The bank you already use for your checking account probably offers these plans. Opening an RESP with the same bank is convenient since you will be able to schedule automated transfers and make contributions to the plan without even thinking about it.
You can open different types of RESPs and need to figure out which one is best for the needs of your child. If you want to save up money to send more than one child to college, you should look into opening a family plan. These plans allow you to name more than one child as the beneficiary of the plan.
If you want to save up money for a child who is not related to you, your best option is to open an individual plan. You can name anyone as the beneficiary. You can also open a group plan. With these plans, the money is invested in low risk investments so the funds will grow. The downside is that you need to make regular contributions to the plan.
You should contact your bank, credit union or your investment dealer to find out more about the plans they offer. Opening a plan is very easy and you can start making contributions right away but it is important to choose the right type of plan to save up for your child’s education. You should also figure out which grants your child will benefit and make sure the financial institution you choose will help you apply for these grants.
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