What is an RESP?
RESPs are tax-advantaged accounts designed to help Canadians save for higher education. RESP funds can be invested in countless ways and if they are spent on higher-education related tuition or expenses, no investment gains in the account will be subject to income taxes.
What Makes an RESP Halal?
The RESP is just an account with some tax rules around it. It is how the money that is deposited into this account gets invested that will make it halal or not. The focus here should not be the account type but the underlying investments. As long as that cash is being used to buy Shariah-compliant investments such as the Manzil Halal Portfolios then you should be able to sleep peacefully at night.
Benefits of a Halal RESP
Free government money
The federal government adds to your RESP savings each year through the Canada Education Savings Grant. They will match 20% of your annual contribution, up to a lifetime maximum of $7,200 per child.
RESP savings grow tax-free
You don’t pay tax on any investment earnings as long as they stay in your RESP account. That means your savings can grow faster.
The money you put in your RESP account gets invested into the Manzil Halal Portfolios. This means your money is not just growing tax-free, but you can sleep peacefully at night knowing it's growing through Halal means.
Friends and family can contribute
Anyone can set up an individual RESP for your child – not just you. Your child’s RESP can grow more quickly with contributions from friends and family.
We partnered with a Robo-Advisor, WealthBar, so you can access our the Manzil Halal portfolios and get financial advice.
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Your Money is Safe with WealthBar
Funds managed by WealthBar are held with custodian members of Canadian Investor Protection Fund (CIPF). This provides limited protection for customer accounts, in case of the custodians’ insolvency for up to $1 million per account type category.
- WealthBar is a registered portfolio manager.
- Advanced technology to secure your account.
- Protecting your personal information.
- Total transparency.