Low-income families losing out on RESP benefits, B.C. credit union contends

Governments offer incentives for parents to open Registered Education Savings Plans, but low-income families stretched to save any money are less likely to do so, which is an inequity that needs to be resolved, says a B.C. credit union CEO.

RESPs have become popular as tax-shelter vehicles for higher-income Canadians, research from Statistics Canada has shown. And the federal government will match up to 20 per cent of contributions to a maximum of $500.

“What does it take to open an RESP, well it depends on the bank,” said Schilling. “At Community Savings, you don’t need a deposit, we’ll do the paperwork for you, of course there’s always paperwork.”

Then beneficiaries, the children or grandchildren or wards, for whom RESP subscribers are opening accounts for, can be eligible for the one-time, $1,200 B.C. training and education savings grant and federal Canada Learning Bond, a needs-based grant that can be up to $2,000.