FAQ




RESP 101

  1. What is a Registered Education Savings Plan (RESP)?

    A Registered Education Savings Plan – or RESP – is a tax-deferred savings plan that allows subscribers (usually parents) to efficiently save for a beneficiary’s (usually a child’s) education.

    An RESP is a great vehicle to help your child fund their education.

    You can learn more about RESPs here.

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  2. Can grandparents, godparents, or family friends contribute to an RESP for a child?

    Anyone who would like to can contribute to a child’s education, subject to the beneficiary’s annual and lifetime limits and plan requirements.

    Read more here.

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  3. Where can I find additional resources?

    There are lots of resources online!

    See the CRA’s resources.

    This link contains a few Q&A’s on RESPs

    Here is another link to some information on RESPs offered by RBC.

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  4. How can I earn free money?

    There is a whole lot of free money the government is willing to give you if you use an RESP.

    Contribution limits apply, please check the CRA website for details

    The Federal Government is willing to match 20% of the money you contribute to an RESP in the form of the Canada Education Savings Grant (CESG). There’s a $500 annual limit (20% of $2,500) and $7,200 lifetime limit to the CESG. For details on how the CESG is calculated, please see the CRA website here.

    All money earned in an RESP is allowed to grow on a tax-deferred basis until it is taken out for education purposes and taxed in the hands of the beneficiary (student).

    When a student takes a withdrawal for education purposes they don’t often pay much income tax as a result of their low income.

    If your child was born on or after January 1, 2004, you may be eligible for additional money through the Canada Learning Bond. Eligibility and additional details can be found here. Under the CLB, the Federal Government will give you $500 just for opening an RESP account – and $100 every year after that up to age 15, with a maximum lifetime limit of $2,000.

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  5. Why should I invest in an RESP

    Post-secondary education costs have risen much faster than almost any other cost families have to bear.

    Planning for the rising cost of a child’s education in advance will help immensely as they reach college or university.

    You can read more here.

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About Hatch Funds

  1. What is Hatch Funds?

    Hatch Funds is a platform that allows users to provide a monetary gift intended to help parents save for their child’s future education. 

    As a gift-giver, you can send an e-Gift to a friend that they can use towards their child’s education. The e-Gift will be sent in the form of an Interac e-Transfer. The parent can then choose to move the money into an RESP for their child. 

    As a parent, you can use the Host Event feature to request monetary gifts from your friends, to help fund your child’s future education.

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  2. Are you offering any promotions for new customers?

    Yes! We are currently offering a special Welcome Offer to new customers.

    We have partnered with RBC to offer our new customers a $50 welcome bonus if they choose to open an RESP account with RBC after hosting their event!

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  3. Do I or my friend have to bank with RBC to use this service?

    The only requirements to us Hatch Funds are:

    The gifter needs to have a valid Canadian credit card to pay for the e-Gift.

     

    The recipient will need to have a valid email address and a Canadian bank account that he/she can use to deposit the Interac e-Transfer.

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  4. Who can I send a gift to? Who can I invite to my events and request e-Gifts from?

    You can send e-Gifts to any Canadian friends! You may also request e-Gifts from anyone who you have a personal or family relationship with, as long as they are Canadian.

    A “personal relationship” means a relationship where you’ve had direct, voluntary, two-way communication and it would be reasonable to conclude there is a personal relationship, taking into consideration any relevant factors such as the sharing of interests, experiences, opinions and information evidenced in the communications, the frequency of communication, the length of time since you’ve communicated or whether you’ve met in person.

    A “family relationship” means a relationship where you are related through marriage, common-law, or any legal parent-child relationship and you’ve had direct, voluntary, two-way communication.

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  5. Why is Hatch Funds restricted to Canadians?

    Currently, Hatch Funds only accepts monetary gifts from Canadian credit cards. Also, gifts can only be redeemed by Interac eTransfer at Canadian banks. We are looking into offering more options in the future. Stay tuned!

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  6. Why is Hatch Funds asking me about RESPs when I am redeeming my e-Gift?

    A Registered Education Savings Plan – or RESP – is a tax-deferred savings plan that allows subscribers (usually parents) to efficiently save for a beneficiary’s (usually a child’s) education.

    An RESP is a great vehicle to help your child fund their education.

    Hatch Funds asks if you have an RESP when redeeming your e-Gift because we want to help you make the best use of this monetary gift.

    If you do not have an RESP, you can still deposit your e-Gift into your bank account at any major Canadian financial institution.

    Your friend has chosen to use Hatch Funds because they would like to contribute towards your child’s future education. One way of honouring your friend’s wish is to put this money into an RESP for your child. If you do not have an existing RESP, Hatch Funds has partnered with RBC to provide you with a special welcome bonus to open a new RESP.

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  7. Why is Hatch Funds sending me 2 emails to redeem my e-Gift and why is there processing time?

    After you provide your details to receive your e-Gift, Hatch Funds needs up to 3 business days to validate this claim so we can release the funds.

    Hatch Funds has put a few security measures in place to ensure we handle your e-gift with care.

    For security reasons, Hatch Funds will send you 2 separate emails containing the information you need to redeem the e-Gift. You will receive ONE email from INTERAC (addressed from: notify@payments.interac.ca) with a link to your e-transfer. In order to deposit this e-transfer, you will need a password to claim the funds. For security reasons, we will send you the password required in a separate email. This second email will come directly from Hatch Funds.

    Your e-Gift will be sent as an Interac e-Transfer to the email address your friend provided. For security reasons, we do not allow users to redirect the e-transfer to another email address.

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Hatch Funds for Parents

  1. How do I begin using Hatch Funds?

    Starting with Hatch Funds is easy and FREE! Just follow the 3 simple steps below to create an event and start receiving contributions from friends and family:

    • STEP 1: Create a Hatch Event Create your Hatch Event today to create an event page customized to you. Simply go to this page and follow the steps to fill out the form!
    • STEP 2: Invite your Friends and Family – Invite friends and family to contribute to your child’s future. When setting up your Hatch Event, we ask that you invite at least 2 guests – but if you wish to add more after you’ve submitted your event you can either send them the link yourself, or email us at contact@hatchfunds.ca and we can add your guests for you!
    • STEP 3: Start Receiving Contributions – You will receive an Interac eTransfer with the total amount (therefore if your friends and family contribute 10 times, we will transfer the total amount of those 10 contributions through Interac e-Transfer). Spend the funds today or watch them grow in an RESP. See below for any further questions regarding banking or RESPs.

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  2. What is a Hatch Event?

    A Hatch Event creates an event page where friends and family can send you monetary gifts. These gifts are meant to help fund your child’s future education.

    Creating an event is easy – refer to “How do I begin using Hatch Funds” above for steps on getting started!

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  3. Does it cost anything to create a Hatch Event?

    No – creating a Hatch Event is FREE and there are no transactional fees when receiving your contributions.

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  4. How do I invite friends and family?

    During Step 2 you will be asked to invite friends and family members that are close to you, simply add their emails in the designated fields and they will automatically be sent a link.

    We ask that upon set up you invite at least 2 guests, and if you wish to add more guests after you’ve submitted your event you can either send them the link yourself, or contact as at contact@hatchfunds.ca and we can add your guests for you!

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  5. Who can I invite to my Hatch Event?

    Only friends and family members that are Canadian Residents or Citizens should be invited.

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  6. What do I need to receive my contributions?

    The only requirements to send or receive contributions are:

    • The gifter needs to have a valid Canadian credit card to pay for the e-Gift. 
    • The recipient will need to have a valid email address and a Canadian bank account that he/she can use to deposit the Interac e-Transfer

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Hatch Funds for Gifters

  1. I’m not sure if my friend has a RESP for their child, can I still use Hatch Funds?

    Yes! Your e-Gift will be sent as an Interac e-Transfer to your friend.

    If your friend has an RESP, they put your e-Gift into that account.


    If your friend does not have an RESP, Hatch Funds can help facilitate this process and direct your friend to the right team at RBC to help them open an RESP.

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  2. How will my friend receive my e-Gift?

    Your e-Gift will be sent to your friend via email inviting them to confirm and accept your monetary gift. After confirming their details, your friend will receive an Interac e-Transfer for the amount you have contributed as an e-Gift

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  3. What if my friend does not accept my e-Gift?

    Hatch Funds will send your e-Gift via an Interac e-Transfer to your friend (based on the email you provide). After the e-Gift has been sent to your friend, he or she will have 30 days to accept and process the gift.

    After 30 days, any e-Gifts that are not redeemed will be refunded to the gifter. The gift amount will be refunded to the credit card that was used for payment

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  4. What if my friend has an RESP but it’s not with RBC?

    That’s ok, we can still send your friend the e-Gift in the form of an Interac e-Transfer.

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  5. I signed up to be contacted about RESPs, but now I changed my mind. What do I do?

    No problem! If you do not wish to be contacted by Hatch Funds, please send us a quick email let us know you changed your mind. If you registered to be contacted via phone, please remember to include your phone number so we can remove it from our list.

    You can contact us at contact@hatchfunds.ca

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