Near withdrawal
Cash, savings, and GIC ladders in an RESP
When an RESP should prioritize capital preservation for tuition due within a few years, and what to check with GICs or high-interest savings.
Source status: compare this approach with provider documents and regulator guidance before acting. This is not personal financial, tax, legal, or investment advice.
Best fit
Withdrawals are likely within 0 to 3 years, or the family wants a dedicated first-year tuition bucket.
Typical holdings
High-interest savings, term deposits, short GICs, or money-market style holdings.
Main strength
Reduces the chance of selling growth assets after a market drop right before school.
Watch for
Lower long-term growth, inflation risk, deposit-insurance limits, and early-cashout rules on some products.
Questions before choosing
- Do GIC maturity dates match school terms?
- Are deposits insured within applicable limits?
- What happens if the student delays school?
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