The RRSP and the RESP both shelter investment growth, but they are built for different people. The RESP saves for a child’s education and collects government grants; the RRSP saves for your own retirement, with a tax deduction up front, and its only education feature is for you or your partner. This page compares them for families deciding where education money should go. The RESP rules are in the complete RESP guide, the RRSP rules in our RRSP guide, and every RESP guide is listed in the RESP hub.
Quick comparison
| Feature | RESP | RRSP |
|---|---|---|
| Government money | CESG of 20% on the first $2,500 a year, up to $7,200; Canada Learning Bond and provincial grants for some | None |
| Tax deduction for contributions | No | Yes |
| Growth | Tax-deferred | Tax-deferred |
| Education withdrawals | For the child, taxed as the student’s income | Lifelong Learning Plan, for you or your spouse or partner only |
| Contribution limit | $50,000 lifetime per child | Your yearly deduction limit, based on earned income |
| If not used for education | Grants returned; growth to your RRSP or taxed with an additional 20% (12% in Quebec) | Stays in the RRSP for retirement |
What each account offers
The RESP’s grant is an addition to the savings: $500 for every $2,500 contributed in a year, with more for lower-income families through the Additional CESG and the Canada Learning Bond. How to collect all of it is explained in our guide to maximising the CESG.
The RRSP’s deduction is a tax saving at your own marginal rate. It is worth more to higher earners, and the money comes out later as taxable income at whatever rate applies then. Our RRSP calculator shows the effect for your income.
Tax on the way out differs too. RESP grants and growth reach the student as Educational Assistance Payments, taxed as the student’s income, and students often pay little tax thanks to the basic personal amount and tuition credits; the details are in our RESP withdrawal guide. RRSP withdrawals are taxed as your income.
The Lifelong Learning Plan
The Lifelong Learning Plan (LLP) lets you take money out of your RRSP tax-free to pay for full-time education or training, but only for yourself or your spouse or common-law partner, not for a child.
| LLP rule | Amount |
|---|---|
| Most you can withdraw in a year | $10,000 |
| Most you can withdraw in total, per participation | $20,000 |
| Repayment period | 10 years; any part not repaid in a year is added to that year’s income |
For a parent returning to school, the LLP can be useful. For a child’s education, it doesn’t apply, and an RRSP withdrawal made to pay for it is taxable income to the parent.
When each account fits
| Situation | Account that usually fits |
|---|---|
| Saving for a child’s post-secondary education | RESP, at least up to the amount that earns the grant |
| Lower family income | RESP first, since the Additional CESG and Canada Learning Bond apply |
| Education money beyond what earns the grant | Either; the RRSP only if the money is really for retirement |
| Saving for your own return to school | RRSP (through the LLP) or a TFSA |
| High income now, lower expected in retirement | RRSP for retirement, alongside the RESP for the child |
The RESP isn’t lost if the child doesn’t study: up to $50,000 of its growth can move into the subscriber’s RRSP if there is room, as explained in transferring an RESP to an RRSP. The full set of options is compared in what happens if your child doesn’t go to university.
The same question with a TFSA instead of an RRSP is covered in RESP vs TFSA for education.
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 23, 2026. How we check facts.
- Canada Revenue Agency: Registered Education Savings Plans (RESPs)
- Canada Revenue Agency: RRSP: Lifelong Learning Plan Withdrawals
- Canada Revenue Agency: Repayments to your Registered Retirement Savings Plan under the Lifelong Learning Plan