FAQ

What is Heritage Education Funds?

Heritage Education Funds offers fixed-income Registered Education Savings Plans (RESPs) in Canada. Heritage Education Funds has also been in business since 1965 and we have helped over one hundred thousand families save for their children’s post-secondary education.

How is interest calculated?

Heritage Education Funds interest allocation is based on the net balance in your account including any accrued interest (after applicable deductions). For government grants, interest is calculated on the full amount of the grant less $25 Canada Learning Bond Administration Fee (if applicable).

How are my RESP contributions invested?

Your contributions (including government grants and income) – are invested into lower risk, variable or fixed securities. Some of these securities include Guaranteed Investment Certificates, Provincial and Federal Bonds, Term Deposits, Corporate Debt Securities, Mortgage Backed Securities, Government Treasury Bills and Principal Protected Notes that earn a consistent and competitive return.

Does my beneficiary get taxed on Educational Assistance Payments (EAPs)?

The child (beneficiary) will be responsible for paying regular tax on the EAPs received. Generally, students have a low income tax bracket – therefore your child may not be as taxed as much for the amounts received.

What is the Canada Education Savings Grant (CESG)?

The Canada Education Savings Grant is a financial incentive offered by the federal government to parents, family and friends who are saving for a child’s post-secondary education. Currently, it provides people with a lifetime maximum of $7,200.