Frequently Asked Questions

1. What is Heritage Education Funds?

Heritage Education Funds is a leading fixed-income Registered Education Savings Plan (RESP) provider in Canada. We have been operating since 1965 and have helped hundreds of thousands of families save for their beneficiaries’ post-secondary education.

2. What is a Registered Education Savings Plan (RESP)?

A Registered Education Savings Plan (RESP) is a plan that allows you to save for your child’s future tuition and gets registered under Canada’s Income Tax Act. Any income on savings within an RESP is considered tax-free until the child is ready to enlist in a post-secondary institution where the earnings are taxed for the student who generally pays little to no tax.

3. How do I open an RESP for my new baby?

You can call us at 1-800-739-2101 or submit an inquiry through our Contact Us form and one of our representatives will be in touch with you. Click here (insert link for contact us page) for a list of our offices.

4. How do I increase the value of my Registered Education Savings Plan?

Tuition continues to be a rising cost in Canada. You are able to increase the value of your RESPs by filling out a contribution form online or by contacting one of our Heritage representatives at any time. Call us at 1-800-739-2101 for more information.

5. How secure is my investment?

Government regulations limit the kind of investments that can be held in RESPs to those that are at lower risk investments. At Heritage Education Funds, we do not invest in stocks or mutual funds which are considered higher risk. The majority of our funds are invested in bonds which are backed by federal, municipal and provincial governments while the remainder is invested in GICs, bank deposits, short term investments or principal protected notes which feature a principal guarantee.

6. Do I get taxed on funds released from the plan?

The Educational Assistance Payments (EAPs) to the beneficiary are taxable to the beneficiary. If the beneficiary does not pursue post-secondary education, then under the Self-Determined Option – the subscriber(s) withdraws the interest accrued in cash and will be required to pay the regular tax on the amount received plus an additional tax of 20% (12% federal and 8% provincial for Quebec residents) to the government.