Is RBC the right place to open your child's RESP? We cover RBC Direct Investing, InvestEase, fees, CESG processing, and who benefits most from banking with Canada's largest bank.
RBC offers three pathways for RESP investors:
Opened through an RBC branch advisor. Invests in RBC's mutual fund lineup — predominantly actively managed funds with MERs of 1.5–2.5%. Convenient for existing RBC customers but carries higher fees than index-based alternatives.
RBC's robo-advisor platform offers managed RESP portfolios at a 0.50% annual management fee plus ETF MERs of ~0.10–0.20%. InvestEase automatically rebalances and adjusts asset allocation as your child approaches 18. A competitive option comparable to Wealthsimple's managed RESP.
Full self-directed brokerage access with stocks, ETFs, bonds, GICs, and mutual funds. Trading commissions of $9.95 per trade for stocks/ETFs — no free ETF trading. Best for RBC customers who already use RBC Direct Investing and don't want to move to another platform.
| Feature | RBC Branch | RBC InvestEase | RBC Direct Investing |
|---|---|---|---|
| Management fee | 0% advisory fee | 0.50%/yr | $0 |
| Fund/ETF MER | 1.5–2.5% | ~0.10–0.20% | ETF MER only |
| Trade commissions | N/A | N/A (managed) | $9.95/trade |
| Rebalancing | Advisor | Automatic | Manual |
| CESG/CLB | Yes | Yes | Yes |
For most RBC customers who want a managed approach, InvestEase is the best option. At 0.50% annually plus low-MER ETFs, the total cost is competitive with Wealthsimple's managed RESP (0.50–0.60% all-in).
InvestEase RESP portfolios are built from iShares ETFs and automatically shift from growth-oriented to conservative as the child approaches post-secondary age. You can set up automatic monthly contributions and receive regular reporting on account performance.
All three RBC RESP options process CESG and CLB applications automatically. RBC is one of Canada's largest financial institutions and has established, reliable grant-processing infrastructure. CESG typically arrives within 6–8 weeks of contribution — consistent with other major banks.
RBC also offers dedicated RESP specialists at branches who can help with CLB applications for qualifying low-income families.
| Account Type | Annual Cost (on $30K) | 18-Year Fee Estimate |
|---|---|---|
| RBC branch mutual funds | ~$525–875/yr | ~$9,000–$16,000 |
| RBC InvestEase | ~$180–210/yr | ~$3,200–$3,800 |
| RBC Direct (ETF) | ~$60/yr MER | ~$1,080 + commissions |
| Questrade (ETF) | ~$60/yr MER | ~$1,080 (minimal sell fees) |
The difference between RBC branch mutual funds and a self-directed ETF RESP can easily exceed $100 over 18 years on a typical-sized account. The InvestEase option strikes a reasonable middle ground.
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