The ABCs of RESPs

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					                                           D E C E M B E R          2 0 0 3

                     The ABC’s of RESPs
Start planning now. Education is more important and more expensive than ever.
For as little as $50 per month you can start an RESP.                                              Wired to Win
a) What is an RESP?                          f) Who controls the assets?                   All existing and new Fat Cat, Headstart
  A Registered Education Savings Plan           • Subscriber/Contributor                   and Xtreme $ense members are eligible
  (RESP) is a government-approved            g) What are the contribution limits?          to win!
  plan for the purpose of providing             • Up to $4,000 per beneficiary, per
  post-secondary education.                       year, to a lifetime maximum of
b) What is the CESG?                              $42,000 (excluding grant amount).
  It is the Canada Education Savings         h) What are the tax implications?
  Grant (CESG) program. This allows            • No tax is paid until withdrawals
  eligible RESP beneficiaries to receive         are made
                                                                                           Win a Sony Vaio RS310 PC
  grant money from the Government              • Earnings and CESG proceeds with-
                                                                                           Watch your statements for ballots. Fill
  of Canada.                                     drawn as EAP's (Educational
                                                                                           out a ballot for each service you have
                                                 Assistance payments) are taxed in
c) Who is Eligible for the CESG?                                                           with the credit union for more chances
                                                 the beneficiary's hands
                                                                                           to win.
  • Must be a Canadian resident              i) What if beneficiary does not pursue
  • Have a social insurance number              education?
  • 17 years of age or less (some
    restrictions apply)                        1) Individual Plan
                                                  Contributor can designate a new
d) What is the grant amount through               beneficiary.
                                                  Family Plan
  • 20% of the contribution amount                Earnings and CESG can be used by
    each year, to a maximum of $400               remaining beneficiaries.
    per year                                                                               SONY Vaio RS310
                                               2) Original contribution dollars can        • Intel Pentium 4 • DVD Drive
  • Maximum lifetime CESG payable                 be withdrawn without penalty             • Keyboard • Mouse • Speakers
    to a beneficiary is $7,200
                                               3) CESG proceeds must be returned           • SONY CPDE240 17" Multiscan
e) Types of RESP's                                to the government                        Monitor • Lexmark X1150 All in One
  Individual Plan                                                                          Printer and more!
                                               4) Avoid tax liability by (certain
  • Only one beneficiary permitted                rules apply):
  • Does not need to be related to                • transferring up to a maximum of
    contributor                                     $50,000 to the contributor's RRSP
  Family Plan                                       (or spousal RRSP) provided the
  • More than one beneficiary                       contribution room exists               Win a Toshiba A10 Laptop
    permitted                                     • donating the plan's growth (not        You will receive ballots by mail in
  • Must be related to the contributor              including the CESG that is repaid to   December. Fill out a ballot for each serv-
    by blood or adoption                            the government) to qualifying edu-     ice you have with the credit union. The
  • Must be under age 21                            cational institution.                  more you have, the greater your chances.

            Maximize Your CESG Benefit
   The $400 maximum annual Canadian Education Savings Grant is
   available retroactively to 1998. Speak to an RESP Representative for details.

          Auto Loans                                Your RESP
 Let us assist you with the purchase of           Representatives                          TOSHIBA A10 Laptop
 a new vehicle.                                                                            • Intel Pentium 4 • DVD Drive
                                              Ardelt Branch           742-3500             • 40GB Hard Drive and more!
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                                              Cathy Christoff           x 228              Contest open until April 30, 2004.
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   your new vehicle?                          Jeanne Vaughan            x 223
                                                                                           Representative TODAY!
 • Are you getting fair value for your        Lisa Manuel               742-9370
   trade-in?                                  Stewart Duckworth         742-9998
 Talk to us and we’ll help you to save!       University Branch         888-4567
 Call your Lending Services Rep:              Pauline Cotrell           x 3574
 Ardelt Ave                                                 Deadline
 Paul Norry x 249
 Amy Usher x 221                              Last day for RESP deposits for the
                                              taxation year 2003, Wednesday,
 University Branch                            December 31, 2003.
 Vaughn Sauve x 6646
                                            New Internet Banking                                            Credit Union ABM's
    We Protect Your                         The Education Credit Union offers
        Privacy                             electronic services through                                      Waterloo Region & Guelph
                                            MemberDirect Internet and Telephone
Credit unions in Canada have a long                                                                     Back by popular demand is our list of
                                            Banking. Through MemberDirect, you
history of respecting the rights of their                                                               credit union ABMs that do not apply a
                                            are able to do a number of account
member/owners. As co-operative                                                                          surcharge. Cut out this list and retain it
                                            transactions, including payment of utili-
financial institutions, credit unions are                                                               for reference.
                                            ty bills, transferring funds between your
committed to the development of
                                            accounts, accessing your account state-                     Education Credit Union (Deposit Taking)
policies, procedures and service offer-
                                            ments, and viewing account activity.
ings that maintain these rights.                                                                        Kitchener          51 Ardelt Ave
                                            MemberDirect Internet banking has
The Education Credit Union board                                                                        Waterloo Regional Credit Union
                                            undergone an up-grade to version 5.0
of directors has adopted the Credit
                                            and now offers a new look along with                        (No Deposits)
Union Code for the Protection of
                                            added functionality.                                        Waterloo           168 King St South
Personal Information, related policies
and procedures, and appointed a             Some of the new features included with                      Kitchener          1334 Weber St East.
Privacy Officer. The Privacy Officer is     MemberDirect Internet 5.0 are:
                                                                                                        Cambridge          385 Hespler Road
your point of contact should you wish       • Enhanced statement and account
to discuss matters regarding the use          information searches                                      Mennonite Savings & Credit Union
of your personal information.               • Enhanced data download compati-                           (Deposit Taking)
Enclosed with your statement is a             bility to Quicken, Quick Books,                           Waterloo           53 Bridgeport Rd. East
                                              Microsoft Money, Simply
brochure outlining the ways in                                                                          New Hamburg 100 Mill St.
                                              Accounting and common spread
which we protect your privacy, in             sheet programs including
addition to a consent form. Please                                                                      Milverton          12 Main St. South
                                              Microsoft Excel
take a moment to review the infor-                                                                      Leamington         243 Erie Street South
mation provided to you. Should you          • Links to view information relating to
                                              your credit union MasterCard                              Guelph & Wellington Credit Union
have any questions, please contact
the Privacy Officer as referenced on        • Access to Credential Direct directly                      (Deposit Taking)
the back of the brochure. Additional          through MemberDirect                                      Guelph             370 Stone Rd. West
information can be found on our             • The ability to transfer funds to
                                                                                                                           200 Speedvale Ave. West
website at                     another member's account
                                            • Increased security and stability                                             130 MacDonell St.

                                            • Improved look and feel                                                       240 Victoria Road South

                                            MemberDirect Internet and Telephone                         Fergus             100 MacQueen Blvd
                                            banking are free. If you would like                         St. Willibrord Community Credit Union
                                            access to your accounts and the ability
                                                                                                        (Deposit Taking)
                                            to pay bills FREE of charge, please con-
                                            tact a Member Services Representative                       Waterloo           55 Northfield Dr East.
                                            at your branch.

    • Discounted  rates
    • Pre-approval
    • 5% down payment
    • Excellent pre-payment
    • Cash back option
    • Personal, professional
         Call 742-3500
                                               Education Centre Branch                                  University Branch
      Paul O’Reilly x 245                      6-51 Ardelt Avenue                                       (Limited Access for University of Waterloo
                                               Kitchener, Ontario, N2C 2S9                              Employees and their Families)
    Sharon Feldmann x 243                      Tel:    (519) 742-3500                                   c/o University of Waterloo
                                               Fax:    (519) 742-6072                                   200 University Avenue W.
                                                                                                        Waterloo, Ontario, N2L 3G1
                                                                                                        Tel:     (519) 888-4567 x 3574 and 6646
      Holiday Hours                            MemberCARE financial Services
                                               Tel: (519) 742-9998
                                                                                                        Fax:     (519) 746-3070

                                               Credential Securities Inc.
            Closed:                            Tel:  (519) 742-9370
       December 25, 2003
       December 26, 2003                      Monday to Friday          10:00am to 6:00pm
        January 1, 2004                       July and August
                                              Monday to Friday          10:00am to 5:00pm
      10:00 am to 3:00 pm                     MemberDirect Telelphone Access                            (519) 651-0800 & (519) 745-1500
       December 24, 2003                      Toll-Free                                                 1-877-468-2864
       December 31, 2003                      Web Site/MemberDirect Online                    
   Regular hours apply outside of
                                              Editor: Shari Freiburger, Copy Editor: Michelle Simmons
          specified dates.