3 different types of RESP accounts are available in Canada, you can invest in the option that best suits your requirement. Options are:
If you are the only one who is going to contribute an RESP account and want to save for only one child’s education then you must go for individual RESP. It is not necessary that the child you are saving for is related to you.
If you are planning to save the amount for the education of more than one child from a single-family then Family RESP is a suitable option. The children could be your own or related to you. Family RESP cannot be opened for children who are not related to you.
It is possible to have one or multiple account holders in this type of RESP. But this type of RESP can only sponsor the education of a single child. This plan allows different people or relatives to come together and contribute to a specific child’s education.
To motivate people to save more for their child’s education, the Canadian federal government and provincial government disburse some amount annually depending upon the amount of contribution in the RESP account. If you combine the grant you receive in your RESP along with your contribution will give a significant increase in overall RESP savings and the total amount will be tax-free till withdrawal. There are certain family income related eligibility criteria that you have to meet for getting a government grant.