Saving for post-secondary education just became easier for parents in Quebec. Parents, grandparents and others can now receive a Quebec Education Savings Incentive (QESI) for their children’s or grandchildren’s education savings program through Fidelity Investments Canada ULC, the fund company said Thursday.

“Opening a Registered Education Savings Plan is an important first investment in your children’s future. Fidelity is pleased to be one of the first major mutual fund companies to offer the QESI for parents in Quebec,” said Charles Danis, vice president, regional sales, Fidelity.

The QESI is a program made available for RESP clients who reside in Quebec. The Quebec government established the QESI in February 2007 to provide assistance to Quebec families to help them save for their children’s education. The incentive is comprised of a refundable tax credit paid directly into the RESP of qualified Quebec residents. An additional credit will be available for families that meet certain family income criteria.

“Tens of thousands of dollars are available to parents through federal and provincial educational granting programs,” said Danis. “By the time your child is ready for post-secondary education, parents could realize over $25,000 in savings all without spending a penny of their own. Plus, your investment in your child’s future is fully tax-sheltered.”

Parents can save a significant amount for a child’s post-secondary education just by investing the Universal Child Care Benefit (UCCB) and making use of other government grants such as the QESI and the Canada Education Savings Grant (CESG). For example, every month, until a child reaches the age of six, parents receive the Universal Child Care Benefit of $100. Parents can arrange to have that amount automatically invested in a mutual fund within their child’s RESP. By contributing the UCCB every month for six years, parents will have put aside $7,200 in savings.

Additionally, the CESG provides a grant of 20 cents for every dollar invested. This will provide $1,440 in savings over this same period. Finally, the QESI adds $720 in savings to parents. After 18 years of dedicated investing, using a mutual fund earning a consistent 7% annual return, parents could have $26,553 in savings.

Fidelity has applied for unclaimed QESI grants retroactive up to three years for eligible RESP account holders who made regular contributions in 2007, 2008 and 2009. Additionally, the 2010 Federal Budget put rules into place to ensure that both levels of the savings and granting programs available to RESPs are synchronized. Parents and grandparents can now maximize both provincial and federal granting systems with this rule clarification.

“Parents should speak directly with their investment advisors regarding how to open a RESP at Fidelity and how it can help them save for their children’s education. And once a qualified RESP account is opened at Fidelity, we will automatically apply for the QESI grant on behalf of the beneficiary,” said Danis.

IE