#TrulyLocalAdvice with PenFinancial Advisors. Heather Jones Twining asked: Which is better to have for a child, an RESP or a regular savings acct? And why? Having both a regular savings and an RESP are important for your education savings. With an RESP there is a lifetime limit. An RESP is a Registered Education Savings Plan. An RESP helps you save for post-secondary education. The federal and provincial government offers grant and tax incentives. You can contribute up to 50,000.00 and there are no taxes payable on the money earned until its withdrawn and then it is taxed to the student who generally has low income. The Canada Education Savings Grant provides 20 cents on every dollar contributed to the RESP up to 500.00 annually (on a contribution of 2500.00) This grant is available until the end of the year that the student turns 17. Opening a SPROWT account with PenFinancial has many advantages. A Sprowt account is a no fee student account that offers free chequing and debit transactions, no monthly fee, interest calculated daily and paid monthly, no fee chequing, free monthly e-statements and unlimited ATM withdrawals and debit transactions per month. If you are entering post secondary school, this account offers competitive rates on savings and GICs and a free student MasterCard. This account is a wonderful choice for your day to day expenses. As you can see, both are great choices and I highly recommend meeting with an advisor to set up both accounts. Catherine Palmer, Financial Services Specialist Dorchester Branch https://penfinancial/SharedContent/documents/1biocatharinepalmer.pdf
Posted on: Tue, 11 Nov 2014 15:16:31 +0000
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