No, there is no cost to open an RESP account.

Questrade does not charge annual or maintenance fees for registered accounts.

The minimum amount required to fund a Questrade account is $1,000 CAD. The government allows for a lifetime maximum contribution of up to $50,000 per beneficiary (child); however there is no annual limit.

No, you do not need to make a regular payment. You can make a contribution whenever you would like to.

You can purchase stocks, mutual funds, GICs, gold, and bonds in a Questrade registered account. Each type of investment carries its own level of risk and reward. As with any financial decision, you should inform yourself about the different kinds of investments you can make in your RESP. For instance, a GIC will provide a modest, low risk, annual rate of return. A stock could provide an exceptional return – or drop in value, depending on various factors (the performance of the underlying company, political, general economy, etc).

You may withdraw the income earned in the RESP if:

• All the persons named in the plan are at least 21 years old and not pursuing a post-secondary education;
• You are a Canadian citizen;
• The RESP has existed for at least 10 years.

Yes, you can transfer your RESP account to another promoter. The cost for a full transfer is $125, for a partial transfer the cost is $25.

While the Canada Education Savings Grant can be used for another child's education, the Canada Learning Bond cannot be transferred. It must be returned to the Government of Canada. Any amount that you have contributed as well as any generated income goes to you.

• Withdraw the earnings as cash (subject to income tax in the year of withdrawal and a 20% penalty may apply);
• Select another beneficiary if the plan permits;
• Donate the plan's earnings to a qualified educational institution;
• Make a tax-free capital withdrawal of your total contributions;
• Transfer up to $50,000 of income earned to your individual or spousal RESP, considering unused contribution room.

There is no limit to the types of qualified educational programs. However, to be able to make a withdrawal, the beneficiary must be enrolled full-time in an institution recognized by the government.

From the government's perspective, there are a number of implications to keep in mind. If the withdrawal is not a PSE (post-secondary education) withdrawal or a capital withdrawal, any grant received on the contributions must be returned to the government. Educational assistance payments, or the accumulated earnings on contributions grants, is considered as taxable income by the student. Since students generally have negligible other income, it is possible there could be little or no tax impact.

You will also incur certain costs if you close the RESP account early or if you don't have a beneficiary who can use the money for further education:

• You must return any Canada Education Savings Grants.
• Any money you have contributed will be returned to you. However, any fees incurred within the RESP will not be returned.