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Discussion Starter #1
Hi,
I want to take adavantage of the RESG offered by the government. I went to my bank (scotiabank) and signed up for an account for each of my 2 children. Afterwards I discovered that the minimum monthly preauthorized contribution was $50.00/child. To most people reading this, contributing $100.00/month to an RESP is probably not much. However, at this time we have a lot of debt which is our top priority. I was hoping to be able to make contributions when I want as much as I want.

Does anyone know if other banks are more flexible with contributions to RESP's?
 

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Scotiabank will allow you deposit as a lump sum when you have cash available.

No need to set up a PAD.
 

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Bupp is right. Just make a deposit when you feel like it.

IMHO, if your debts are a priority then don't make any RESP contributions until the debt is reduced to a more comfortable level.
 

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Discussion Starter #4
Resp

I was hoping it would be as easy as making a transfer from my one account to the RESP. There is no option to do this within my online banking, so i suppose i would have to take time of work to go directly to the bank to make the deposit. This is a little more inconvenient than i had hoped. With todays technology i was hoping it would be easier.
 

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Brian123, there is no need to setup automatic payments into the plan.
Pay when you can, whatever you can - keeping in mind that for grant purposes, the year is the calendar year (Jan - Dec).
The financial institution keeps track of your payments and reports them to the govt.
You will get the CESG grant, no matter how small your payment into the plan might be.
The first year I set up the plan, I had to pay an extra $2 to round off several other payments.
I received the CESG grant on that payment as well.

Since you have 2 kids, make sure you set up a family plan instead of 2 individual ones.
If that's not the case, have them fix it.
 

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Discussion Starter #6
RESP contribution

HaroldCrump, so are you able to simply make a payment transfer to the RESP through online banking? Or do you have to go to the bank?

Looking at the account details online it shows 2 profiles, one for each child, but I'm quite sure they are somehow combined as a "family plan".

When I first went to set up the RESP, I was quite surprised that my bank had never even heard of the government contribution. They basically laughed at me and said it would be silly for the government to just hand out money like that. I had to show them the details on the government website. Then she tried to tell me that my children were not siblings because their computer said so. After an hour of troublshooting she realized she missed a checkbox that said "If sibblings check yes".

Needless to say I was not impressed with my banks investment services!
 

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There is no option to do this within my online banking...
I had this problem with my TFSA and they said it was because I had elected not to have them share my data within their organization. When I changed that election, the account showed up for direct online transfers. This applies to all account types.
 

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TD Waterhouse - Time to CESG

A little off-topic but maybe this is of interest.

I deposited a lump sum into a RESP with Waterhouse Jul 27 and got the government grant Aug 31. I think they only do the accounting every few weeks.

With TD I can transfer money from banking to investing with no trouble.
 

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HaroldCrump, so are you able to simply make a payment transfer to the RESP through online banking? Or do you have to go to the bank?
You should be able to do a bill payment into the RESP account.
If both are with the same institution, you should be able to do a direct transfer as well.
I'd be surprised if your institution doesn't support either of these methods and requires you to walk into a branch to organize a payment.
Looking at the account details online it shows 2 profiles, one for each child, but I'm quite sure they are somehow combined as a "family plan".
They probably are, but check with the institution to be sure.
While filling out the paperwork, was there a column for % split between the kids?
Family plans usually have that.
They might be doing a default 50/50 split as well.

When I first went to set up the RESP, I was quite surprised that my bank had never even heard of the government contribution. They basically laughed at me and said it would be silly for the government to just hand out money like that. I had to show them the details on the government website.
Sounds like you need a new bank :D
 

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HaroldCrump, so are you able to simply make a payment transfer to the RESP through online banking? Or do you have to go to the bank?
I don't know how Scotia bank RESPs are set up but I know how it works for a TD RESP account. When you click on the "Purchase Mutual Funds" link and enter your buy order, money is taken off the chequing account (need not be a TD account) and put into the RESP account. I can do all this online but then the RESP account is set up for online access.

Looking at the account details online it shows 2 profiles, one for each child, but I'm quite sure they are somehow combined as a "family plan".
As long as you included each child in the other child's plan, you have set up a family plan.
 

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Of all the investment vehicles this one is a no brainer. I am trading actively in this account and enjoying dividends and DRIPs. i think at my TDW account (for both my kids) saves fees as it a single account...another benefit.

I put in $5K last year and it is now sitting at $8,900 - $2,000 of which was the grant:) I am going to hold off making further deposits since it doing so well and my oldest kid is only 25 months old.

Another suggestion is to transfer stock into the account - with no fee - provided they come from your trading/margin account (with the same broker). This can be timed when the values are at their highest then make a transfer and the RESG is based on that value. Also you are not selling so no other fees involved. Sixty days later you get the 20% of their value in cash. You can also do small amounts of several stocks etc for diversity. My biggest problem (which is nice) is what to do with the cash as it accumulates. I enjoy $9.99 trades so small buys are not too costly.
 

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Another suggestion is to transfer stock into the account - with no fee - provided they come from your trading/margin account (with the same broker). This can be timed when the values are at their highest then make a transfer and the RESG is based on that value. Also you are not selling so no other fees involved.
isn't that a deemed disposition?
 
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