1. Tax-Deferred Growth: One of the primary advantages of a RESP is the tax-deferred growth it provides. Contributions to a RESP grow tax-free until the funds are withdrawn, allowing your savings to compound more effectively over time.

2. Government Grants: The Canadian government offers additional incentives to encourage education savings through RESPs. The Canada Education Savings Grant (CESG) matches 20% of annual contributions up to a certain limit, providing a maximum grant of $500 per year. Additionally, the Canada Learning Bond (CLB) offers extra funds for eligible low-income families.

3. Contribution Limits: There is a lifetime contribution limit for each beneficiary, which is currently set at $50,000. While there are no annual contribution limits, it’s important to keep track of your contributions to avoid over-contributing, which can result in penalties.

4. Protective Features: One of the standout benefits of segregated fund RESPs is the protective features they offer. These include maturity guarantees, which ensure that a certain percentage of your investment (typically 75% to 100%) is protected at the maturity date, and death benefit guarantees, which protect your investment in the event of the subscriber’s death. These features provide peace of mind, knowing that your investment is safeguarded against market volatility.

5. Flexible Withdrawals: Once the beneficiary is enrolled in a qualifying post-secondary institution, funds can be withdrawn to cover various education-related expenses, including tuition, books, and living costs. Withdrawals are categorized into two types: Educational Assistance Payments (EAPs), which include the government grants and income earned, and Post-Secondary Education (PSE) withdrawals, which consist of the original contributions.