Is an RESP Halal, and Can I Take the Government Grant?

An RESP can be halal, and the government grant is widely viewed by scholars as acceptable because it is a contribution from the government, not interest.

The Canada Education Savings Grant adds 20% on the first $2,500 you put in each year, up to $500 a year per child and $7,200 over the child's lifetime. That is free money for your child's education. The question is what the RESP invests in. Many RESPs, especially group plans, hold mostly bonds. A self directed family RESP lets you choose Shariah screened investments.

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