Group RESP vs. Self-Directed Net Growth Calculator
Enter your current Group RESP details to compare final payout at age 18 after factoring in exit fees vs compound MER savings:
Estimated Payout at Age 18 (Group Plan @ 3.50% MER)
$86,401 CAD
(Includes promised bonus if fully qualified)Estimated Payout at Age 18 (Self-Directed @ 0.20% MER)
$101,000 CAD
(After paying $1800 fee today)Mathematical Result: Exiting your Group RESP and switching to a self-directed portfolio (Questrade / Wealthsimple) leaves your child with +$14,599 CAD MORE MONEY for college at age 18, even after paying the $1800 exit fee today!
Group RESP vs. Self-Directed RESP Comparison
| Feature | Group Scholarship RESP (iA, CST, Knowledge First) | Self-Directed RESP (Questrade / Wealthsimple) |
|---|---|---|
| Annual Management Fee (MER) | 3.0% – 3.7% MER | 0.20% – 0.25% MER (ETFs) |
| Investment Control | Restricted to proprietary group pool. | Full control (All-in-one Asset Allocation ETFs like VGRO, XGRO). |
| CESG Government Match | 20% match up to $500/yr ($7,200 lifetime limit). | 20% match up to $500/yr ($7,200 lifetime limit). Auto-deposited. |
| Flexibility if Child Delays College | Strict Risk of Forfeiture | 100% Flexible (Hold until age 35, transfer to sibling/RRSP). |
How to Transfer Out of a Group RESP Safely (Protecting CESG Grants)
- DO NOT Withdraw the Money Yourself: Cashing out your RESP triggers immediate clawbacks of all CESG/CLB government grants to Ottawa and generates a T4A tax bill.
- Open a Family or Individual RESP at Questrade / Wealthsimple: Set up a self-directed RESP account online.
- Initiate an Institution-to-Institution Transfer: Fill out the transfer form (Form SDE 0100) directly inside your new broker portal. Request a direct transfer of cash and accumulated grants.
- Broker Handles the Migration: Questrade/Wealthsimple handles the transfer directly with iA/CST, keeping all accumulated government grants completely intact and tax-free.
Frequently Asked Questions: RESP Transfers & Fees
No! As long as you perform a direct institution-to-institution transfer via Form SDE 0100, all accumulated CESG ($7,200 lifetime cap) and CLB bonds remain 100% intact and transfer into your new self-directed RESP without clawbacks.
Most Canadian investors choose low-cost All-in-One Asset Allocation ETFs:
- Child Age 0–10: XGRO / VGRO (80% Equity / 20% Fixed Income) for maximum growth.
- Child Age 11–14: XBAL / VBAL (60% Equity / 40% Fixed Income) to preserve capital.
- Child Age 15–18: XCNS / VCNS (40% Equity / 60% Fixed Income) or CASH.TO to protect funds for immediate tuition withdrawals.
Yes. Questrade typically rebated transfer fees up to **$150 per account** when you transfer an existing RESP balance over $25,000. Submit your final transfer statement from iA to claim the rebate.