Pursuing education in Canada presents a great opportunity, and migrating to Canada has significantly fostered educational growth. Influenced by some of the leading international university systems and a per capita income above the global average, Canada attracts students from around the world each year. Canada is a highly desirable destination for international students, as it offers a high-quality education system, a vibrant multicultural environment, and a stable economy with excellent job prospects. To study in Canada, international students must satisfy several financial requirements. For instance, they must provide proof of funds sufficient to cover their tuition fees and living expenses for the duration of their studies.
This is where a Guaranteed Investment Certificate issued by a Canadian financial institution comes into play. The GIC Canada is a requirement for obtaining a study permit, as it demonstrates that the student has the necessary financial resources to support their education and living costs in Canada.
What Is a GIC?
A GIC is a low-risk investment product offered by banks and credit unions in Canada. GIC stands for Guaranteed Investment Certificate, where you contribute a lump sum of money for a specific period in return for a fixed rate of interest. By presenting a valid GIC under your name when applying for a study permit, you prove that you can financially support yourself while studying in Canada.
Advantages Offered by a Student GIC
Using a Student GIC from leading Canadian financial institutions, such as major banks, has several advantages:
- Financial Guarantee:
With a GIC, a Canadian bank assures your investment before releasing the full principal amount at the expiry date of the GIC. This serves as genuine proof of funds when applying for your study permit. - Low-Risk Instrument:
The GIC is safe because it is guaranteed, and your principal investment is protected as it is fully insured by the Canada Deposit Insurance Corporation (CDIC) on deposits of up to $100,000. This means there is no risk of losing the invested money. - Flexible Options:
GIC providers offer flexible terms ranging from 1 to 5 years to match the length of common academic study periods. You only need to renew it if your program is extended. - Special Discounted Rates:
Students qualify for special, concessionary interest rates for those investing in a GIC, enabling you to maximize returns on your investment. - Option to Withdraw:
Most student GICs allow you to withdraw early if you encounter financial difficulties or emergencies. This liquidity provides peace of mind.
How Does a Student GIC Work?
Step 1: Choose the GIC Provider and Term
Select a reputable Canadian bank or credit union and determine a suitable GIC term that covers at least the first year of your studies. Opt for a provider that specializes in student GIC services, allowing flexibility in case you need to make a withdrawal.
Step 2: Transfer and Invest Funds
Wire the required GIC amount to the financial institution and sign the GIC investment contract for the selected period. During the term, you will not be able to access the funds, but you will earn guaranteed interest.
Step 3: Receive Your GIC Certificate
After transferring your money, you will receive an official GIC certificate containing details such as the investment amount, term, and maturity date.
Step 4: Include the Certificate in Your Study Permit Application
Submit the GIC certificate from the Canadian bank as part of the documents required for your study permit application. This serves as proof that you have sufficient funds to cover your first year’s tuition and living expenses.
Step 5: GIC Auto-Renews at Maturity
Once your GIC term matures, the bank will renew it for the same term at the prevailing interest rates. You can withdraw the funds if not required or use them for the next term. This helps you maintain proof of funds throughout your study duration in Canada.
Recommendations for Purchasing a Student GIC
When exploring student GIC options from leading Canadian banks and credit unions, consider the following:
- Provider Reputation:
Choose a bank known for its service, security, stability, and offerings specifically for students. - Interest Rates and Returns:
Look for banks that advertise competitive interest rates, ensuring you get the best possible returns on your investment. - Flexible Enrollment Terms:
Search for terms that align closely with your academic program’s duration to avoid the need for mid-term renewals. - Low Initial Opening Deposit:
Select banks that allow you to open a GIC account with a small initial investment, enabling gradual funding. - Convenient Online Application Process:
Choose banks with an online application procedure for opening, renewing, and managing your student GIC, making it easier to handle everything before your arrival in Canada.
By evaluating these parameters, you will be well-equipped to identify the best Canadian bank for your student GIC investment.
Student GIC: A Smart Choice
A dedicated Student Guaranteed Investment Certificate provided by top Canadian banks meets the essential financial needs of international students pursuing education in Canada. With the assurance that your funds are secure, the GIC offers options specifically designed for students, such as significantly lower special rates and a reliable way to demonstrate your financial capability. Incorporating a student GIC is a smart and easy method to finance your education abroad, as it provides numerous advantages. Given these benefits, a student GIC should be an integral part of financial planning for international students aiming to study in Canada.
