Opening an RESP is one of the best financial moves you can make for a newborn. Here's exactly how to do it — from getting a SIN to making your first contribution and claiming every grant.
A SIN is required to open an RESP and receive CESG and CLB. For babies born in Canada, you can apply for a SIN as part of the Newborn Registration Service in most provinces — typically done at the hospital before you leave. If you missed this, apply at any Service Canada office or online at canada.ca with your child's birth certificate.
Processing time: Same-day at Service Canada offices; 2–4 weeks by mail.
For most new parents in 2026, the top choices are:
Online (Wealthsimple, Questrade): Takes 10–15 minutes. You'll need:
In-branch (TD, RBC, etc.): Bring the above documents to any branch. An advisor will open the account and help set up automatic contributions.
Your provider applies for the CESG automatically when you contribute. For the CLB, confirm with your provider that they've submitted the application on your behalf — some require a separate step. CESG typically arrives 4–8 weeks after your first contribution.
If you think you may qualify for the CLB (lower-income families), explicitly ask your provider to apply — don't assume it's automatic everywhere.
The magic number: $208.33/month ($2,500/year) captures the full $500 CESG each year. Set up an automatic monthly transfer from your chequing account so you never miss a contribution.
Can't afford $208/month? Even $50/month ($600/year) earns $120 in CESG — still a guaranteed 20% return on every dollar up to $2,500/year.
For a newborn with 18 years until withdrawal, go 100% equity:
| Month | Action | Account Balance (approx) |
|---|---|---|
| Month 1 | Open RESP, contribute $208 | $208 |
| Month 2–3 | CESG arrives (~$41 on $208) | ~$660 (after 3 months + CESG) |
| Month 6 | 6 months of contributions | ~$1,350 |
| Month 12 | Year 1 complete: $2,500 contributed | ~$3,100 (contributions + $500 CESG + growth) |
By the end of year 1, your $2,500 in contributions becomes approximately $3,100 — a 24% return including CESG and investment growth. No other savings vehicle offers this in Canada.
RESP contributions make excellent gifts for new parents. Here's how to share the love:
Even a one-time $500 baby shower contribution, invested in XEQT for 18 years at 6%, grows to approximately $1,430 by the time the child is ready for post-secondary — a lasting gift that keeps compounding.
| Age | Contributions to Date | CESG Earned | Total Value (6% return) |
|---|---|---|---|
| 1 | $2,500 | $500 | ~$3,180 |
| 5 | $12,500 | $2,500 | ~$19,600 |
| 10 | $25,000 | $5,000 | ~$48,200 |
| 15 | $37,500 | $7,200 | ~$83,000 |
| 18 | $45,000 | $7,200 | ~$105,000 |
Starting at birth and contributing $2,500/year at 6% average annual return produces approximately $105,000 by age 18 — enough to cover 4 years of university tuition plus significant living expenses.
KOHO's free savings account helps parents set aside RESP contributions every month. Earn cash back on everyday spending and redirect savings to your child's RESP.
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