Student Guaranteed Investment Certificates, better known as GICs, are ideal investments for international students looking to apply for a Study Permit in Canada under the Student Direct Stream (SDS). Under this stream, depositing at least $10,000 dollars for living expenses, assures faster processing, and improves your chances of being approved, if you meet all other requirements.
A GIC is essentially an investment option with a fixed return that can be held over any given period of time. It’s safe, reliable and can give you some extra peace of mind when it comes to your financial situation. Plus, if you’re from India or China and apply through the SDS program, you may even be eligible for a reduced interest rate!
This is a mandatory prerequisite that all students must meet if they intend to submit their application via the Student Direct Stream route. Three major banks provide these services to overseas students currently enrolled in Canadian universities/colleges. This post will explain in full how to obtain a GIC certificate from each of these lenders.
So why not explore your options with student GICs today?
It could be the best investment you ever make!
What Is The Recommended GIC Canada Amount For International Students?
It is important that all potential students who are seeking a student visa to Canada understand the financial requirements associated with the application process. According to the Canadian embassy, applicants must provide proof of at least $10,000 CAD in their separate savings account as part of the GIC program when applying for their student visa. This amount can be deposited in one-time sums ranging between $10,000 and $50,000 CAD with any of the Canadian embassy-registered and accredited lenders. We recommend that you take some time to familiarize yourself with these financial requirements prior to submitting your student visa application.
Many lenders will put a portion of your GIC Canada investment into a savings account with the remainder used to create a non-redeemable account. This account is where you can get money out during your term, along with any interest earned over this period. So not only do you get to benefit from the security of GIC Canada funds but also from any potential earnings on top! It’s a win-win situation!
The Process Of Opening A GIC Account
Candidates should start the process of obtaining a student GIC program account at least a month before applying for a student visa to Canada. Students can create a Canada GIC account with one of three major banks:
- Scotiabank, Canada
- SBI, Canada
- ICICI Bank, Canada
The overall method followed by all three institutions is nearly the same. The following is a general summary of how students can obtain verification of GIC amount for Canada student visa.
Advantages of GICs in Canada
- Your principal — and usually the interest — are guaranteed
- Interest is typically considerably higher than interest savings accounts
- Minimum investments can be as low as $500 and there are usually no charges to open one
Disadvantages of GICs in Canada
- Depending on the economy, interest rates can be quite low, so try not to lock in your money for too long when rates have dipped
- Your money can be locked in for years at a time
- You can pay a penalty or lose interest if you withdraw your money early
- If you lock your money in for a long term at a low rate, inflation may mean the value of your money decreases over time
Things you need to know about GICs in Canada
- Generally there are no fees with GICs
- Most GICs pay a fixed rate of interest for a set term (6 months, 1 year, 2 years or up to 5 years) and the term ends on the maturity date – the longer the term, the higher the interest rate
- Some GICs offer variable interest rates
- Interest on your GIC may be paid monthly, once a year or on the maturity date
- If you need to get your money back before the maturity date, you may have to pay a penalty depending on the type of term purchased. Funds in a non-redeemable term are generally locked in until maturity unless there are qualifying circumstances
- Some GICs — called cashable or redeemable GICs — do not charge a penalty if you need to get your money out early, but the interest paid is lower
- Your money is protected through the Canada Deposit Insurance Corporation (CDIC) – but only for terms of 5 years or less and only on Canadian funds
- You can hold your GICs in registered investment accounts like RRSPs, RRIFs and TFSAs
- If you hold your GICs outside of your RRSPs, RRIFs or TFSA – you will be taxed on the interest you earn
1. What is a GIC account for a student visa?
If you’re an international student looking to study in Canada, opening a GIC or savings account could be beneficial. To be eligible to process your study permit application under SDS, you must deposit one year’s worth of living expenses into a Canadian bank, or at least $10,000.00. Setting up an account helps ensure that you have the financial resources needed to support yourself while studying here. So don’t forget to open an account before you apply for your visa! It’s also important to know that GIC and savings accounts can help more than just those looking to study in Canada. If you’re planning a move here, having a financial plan in place is essential – setting up a GIC or savings account can give you peace of mind that you have the resources you need. So whether you’re studying or just looking to start a new life in Canada, GIC and savings accounts are a great way to get your finances organized.
2. How can I open a GIC account in Canada if I am a student?
You can open your GIG account with Scotiabank, SBI, and ICICI Bank in Canada. The application method followed by all three institutions is nearly the same. You can register online for a student GIC program account with any of the Canadian banks listed above. The account opening process can take anywhere from 10-15 days.
3. How much money should I put into a GIC?
If you plan on studying in Canada, it is important to understand the process for obtaining a student visa. The Canadian embassy recommends that applicants have at least CAD 10,000 in a Guaranteed Investment Certificate (GIC) when applying through the student direct stream. To do this, you will need to open an account with a lender that has been accredited by the Canadian embassy. This will help ensure that you have the necessary funds to cover the cost of studying and living in Canada.
8 Benefits of Studying in Canada
Canada is a great place for both Canadians and international students to live and work, boasting the highest quality of life in the world. Additionally, four cities in Canada are among the top 100 best student cities based on QS World University Rankings! This is an awesome incentive for international students looking for a place to pursue their studies. With so many wonderful opportunities, it’s no wonder that Canada is so popular with students around the world.
Canada has something for everyone when it comes to being outdoors. From the stunning coastline of British Columbia, to the breathtaking Rocky Mountains of Alberta and beyond, you won’t have to look far to find an incredible view. Whether you like exploring nature or prefer a more active outdoor lifestyle, Canada’s vastness offers so much: lush forests in the Great Lakes and St. Lawrence, big prairies with big skies, and the rugged hills and attractive coastline of the Atlantic Provinces all provide an impressive natural backdrop to enjoy. No matter where you are in Canada, there’s always something beautiful to see!
Studying in Canada is a great choice for students who are seeking top-level education. Canadian universities have achieved impressive rankings on the QS World University Rankings 2022 and THE World University Rankings 2022, with 28 of its universities being featured in the former and 27 in the latter. This is a testament to the trustworthiness and excellence of degrees granted by Canadian educational institutions, making it a great choice for students who want to pursue higher education in a safe and reliable environment.
International students are offered a unique opportunity to explore the world of research in medicine, biology, and physiology. With support from the National Research Council, they can collaborate with various scientists in their respective fields and gain invaluable insights into how their research can be put to use in real-world situations. This is made possible through collaborations between industry and universities that promote greater research and development in Canada. So, if you’re an international student looking to get involved in research, Canada is the perfect place to get started!
Studying in Canada can provide international students with a more affordable alternative compared to many other countries. Affordability is one of the main draws for international students, as expensive tuition fees can be a major barrier to educational opportunities. The cost of living also varies depending on the province; although it typically falls between 800-2000 CAD and covers expenses related to accommodation, leisure activities, food, and transportation. All of these factors make studying in Canada an attractive proposition for students looking to pursue higher education.
If you’re an international student looking to study in Canada, one of the prime perks is that you can work up to 20 hours a week during the semester. Plus, you won’t have to worry about securing a work permit; your study permit is enough to secure part-time employment on campus or as an intern with any company. So studying in Canada can provide you not only with a quality education but also a great opportunity to gain valuable work experience.
Co-operative education, often known as co-op education in Canada, is a program that allows you to work in a field connected to your studies. Students who are on a co-op program typically alternate between four months of education and four months working full-time for the organization they are working for. It’s a fantastic way to learn about other professions, obtain useful experience, and earn money while pursuing your bachelor’s degree. Almost all post-secondary universities in Co-op programs in Canada are offered as part of the academic curriculum. In fact, you’ll have a co-op teacher who will help you get into a workplace that most other students don’t have access to.
The Post-Graduation Work Permit Program (PGWP) is a fantastic opportunity for international students in Canada. It allows them to gain invaluable Canadian work experience, as well as the chance to stay and work in Canada for longer than the duration of their education program. If a student has graduated from a designated learning institute, they can apply for the PGWP after receiving their final academic marks. This is a great way to gain long-term career benefits and take advantage of the unique opportunities available in Canada. It is an excellent opportunity for Indian students to gain international work experience and make a mark on their career. So, if you are looking to gain valuable Canadian work experience and make the most of your education abroad, the PGWP is a great way to do it. Don’t forget to take the necessary steps to apply for this program and make the most of your Canadian experience.
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