Define: Registered Education Savings Plan

UK Accounting Glossary

Definition: Registered Education Savings Plan



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Full Definition of Registered Education Savings Plan


A Registered Education Savings Plan – or RESP – is a special savings account designed to pay for a child’s post-secondary education in Canada. A registered education savings plan is a relatively simple way for Canadian parents to save for their child’s education. Under a registered education savings plan the Canadian government will contribute a 20% bonus on the first $2,000 placed into a registered education savings plan account. In addition, the Canadian government provides several important tax breaks for contributions to a registered education savings plan, although there are penalties for early withdrawl from a registered education savings plan account. Provisions are made for withdrawl from a registered education savings plan if the student does not qualify for post-secondary education. Through a combination of tax-deferrments and lower tax rates on withdrawl, a registered education savings plan is a helpful vehicle for many families struggling to pay for college expenses.


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Definition Sources


Definitions for Registered Education Savings Plan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.