The most regular questions students ask before seeking studies in Canada concerns GIC (Guaranteed Investment Certificate). The subjects we will explain below are vital for international students since GIC is a crucial aspect of Canadian study permit procedures and can significantly affect the students’ stay in Canada.
Before applying for a study permit, let’s dive in and gain insight into the various factors and how GIC functions.
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Meaning Of GIC In Canada
GIC Canada, also described as the Guaranteed Investment Certificate, is a savings scheme mainly formed for international students who intend to study in Canada. The government of Canada needs this investment scheme as evidence of monetary assistance for international students during their visit to Canada. It is administered to ensure that international students have the applicable finances to pay tuition fees and living costs while studying in Canada.
Why GIC Is Required
The government of Canada has made the Guaranteed Investment Certificate mandatory due to these significant motives:
- To make sure that students moving to study in Canada can make payment for their basic costs for a minimum of 12 months.
- It is administered as evidence of finances, which is mandatory for obtaining a visa or permit; this goes ahead to expedite the procedures.
The Least Amount Needed For A Foreign Student To Open A GIC Account
International students under the Student Direct Stream structure must pay CAD 10,000 to CAD 15,000 in their first year with one of the financial institutions identified under the Canadian embassy. You may be required to pay a particular transaction fee based on the bank’s requirements with which you have opened your Guaranteed Investment Certificate account.
For instance, we will use the CIBC bank as an illustration.
- Make a Guaranteed Investment Certificate account available using CAD 10,000.
- When you go to the CIBC bank, CAD 2,000 will be forwarded to your savings account.
- Then, the remaining CAD 8,000 is invested in your GIC program account.
- As the year goes by, you will obtain the complete sum of investment together with the interest based on the terms and conditions of the financial institution in 11 equal reimbursements.
Note: It is often best to consult with the educational institution you intend to go to concerning the first deposit, as the sum can differ under certain monetary conditions or suggestions.
Advantages Of Opening A GIC Account
Understanding what GIC Canada is for international students and why it is required, the next thing is to see some of the critical benefits of having a GIC account. Even though having a GIC account has several advantages, we will focus on the three significant benefits.
Reduced-Risk
One of the critical benefits of Guaranteed Investment Certificates for international students is that they are a reduced threat investment choice. The rate of return is assured, and investors do not have to be anxious about forfeiting their principal investment.
This makes the Guaranteed Investment Certificate the best option for students who may need to learn more about investing or are seeking a sure way to save funds while studying in Canada.
Satisfies The Monetary Conditions For A Visa
The government of Canada demands international students ascertain that they possess sufficient funds to protect their tuition payments and living costs while studying in Canada. A Guaranteed Investment Certificate can indicate this, as long as the investment is held for a minimum period of 12 months and in the student’s or their guardian’s name.
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High Liquidity
Another benefit of Guaranteed Investment Certificates for international students is that they are a liquid investment method. This implies that contrary to other investments such as stocks or real estate, the funds can be accessed if the student requires it. Most Guaranteed Investment Certificates can be withdrawn before maturity but with a fee, whereas others demand waiting until they mature. Therefore, it becomes simple for international students studying in Canada to access funds.
Step-by-Step Application Procedure For A GIC
Step One: Enroll For Bank-secured Email Service
To apply for a Guaranteed Investment certificate, you must enroll with an endorsed Canadian financial institution to acquire secured email services. This service permits the person to transmit documents and private details to the financial institution securely.
Step Two: Present The Student Guaranteed Investment Certificate
When you enroll in the bank’s secure email service, you will receive an email for Student Guaranteed Investment Certificate Program Application. You must complete all the relevant details in the form, including your contact information, academics, job history, and monetary condition. This form can be achieved either offline or online. Download this form from the enrolled email address and take a printout to complete it offline. Keep in mind that the application procedure can take five working days.
Step Three: Finance Your Account
After presenting the Student Guaranteed Investment Certificate Program application, you will receive an investment account code with financing information in your secured email. If applicable, you must fund your account with a minimum of CAD 10,000 and the transaction payments. This can be carried out by sending funds from your private savings account or a joint savings account.
Step Four: Make An Application For The Study Permit/Visa
You can apply for a study permit when you have financed your account. You can apply for it from the Canadian office regarding your respective nation. You may also be required to present an investment account number for a student permit or visa.
Step Five: Conclude The Documentation Formalities
After landing in Canada, go to any bank station where you opened your Guaranteed Investment Certificate account and complete all the documentation formalities. For this, you would be required to bring an authentic passport, study permit, Investment balance verification, and an admission letter from the institution in Canada.
After completing these stages, you will be registered in the Guaranteed Investment Certificate (GIC) program, and you can begin investing your finances in the GIC.
Note:If your study permit or visa is rejected, you will receive a refund of CAD 10,000 in your private account. To obtain this payback, you must provide evidence of cancellation of your study permit and removal of registration from the Canadian education university or rejected admission request from a Canadian academic university or college.
Bank Enrollment Measures For Receiving GIC
Financial institutions that provide Guaranteed Investment Certificates are required to satisfy specific measures. If the financial institution ignores doing so, you cannot apply for a student visa or help via the Student Direct Stream. Therefore, ensure that your bank satisfies the measures listed below:
The bank is required to verify that you purchased a GIC by providing you with 1 of the following:
- Attestation letter
- Guaranteed Investment Certificate license
- An Investment Directions Verifications
- An Investment Balance Verification
The financial institution is required to keep a GIC in an investment account or a student account that you can not have access to until you land in Canada or will discharge the finances only by giving:
- The first massive amount upon landing in Canada
- The remaining funds must be discharged monthly or bi-monthly installments over ten months to one year.
