Common Financial Words
There can be a lot of jargon thrown around when it comes to financial matters. Below are a few of the most common financial words you will hear when talking about RESPs.
The money you put into your RESP or savings account.
The money the bank pays you on the principle you put into your account. Currently the interest the bank pays is about 0.05% to 3.0% depending on the account. You also pay interest when you borrow money or carry a balance on your credit card.
Money that you are paid on your principle. This money can be interest, dividends or capital gains, depending on what kind of investment you have.
The person who opened the RESP.
The person who the RESP money is for.
The Bank, credit union or group plan provider where you open your RESP.