How To Get GIC For Studying in Canada

Study In Canada Apr 15, 2023 0 1074 Add to Reading List

Guaranteed Investment Certificates (GICs) are an increasingly popular way for international students to demonstrate proof of funds when applying for a study permit to study abroad in countries such as Canada.

In order to study in Canada, international students must provide proof that they have sufficient funds to cover their tuition fees, living expenses, and other associated costs for the duration of their stay. The Canadian government has established a minimum amount of funds that international students must have in order to be eligible for a study permit. This amount varies depending on the program of study, the location of the institution, and other factors.

One way that international students can demonstrate proof of funds is by providing a GIC from a Canadian financial institution. This GIC serves as a commitment that the student has the required funds to cover their expenses for the first year of study in Canada. The GIC amount is typically set at CAD $10,000, which is the minimum amount required for proof of funds purposes.

To obtain a GIC, international students must first apply to a Canadian financial institution that offers GICs for international students. The application process typically involves providing personal information, such as name, date of birth, and contact information, as well as proof of identity and proof of enrollment in a Canadian educational institution.

Once the application is approved, the student must transfer the GIC amount to the financial institution, which then holds the funds for a predetermined period of time, usually 12 months. During this time, the funds earn interest at a fixed rate, which is typically higher than the interest rate offered on regular savings accounts.

At the end of the GIC term, the student can access the funds, along with any interest earned, to cover their living expenses and other associated costs while studying in Canada. If the student chooses to renew their GIC for another year, they must repeat the application process and transfer another CAD $10,000 to the financial institution.

There are several advantages to using a GIC as proof of funds for international students studying in Canada. Some of these advantages include:

Ease of Use: GICs are a simple and straightforward way for international students to demonstrate proof of funds for their study permit application.
Guaranteed Return: GICs provide a guaranteed return on the investment, which means that students can be confident that they will have sufficient funds to cover their expenses for the first year of study.
Higher Interest Rates: GICs typically offer higher interest rates than regular savings accounts, which means that students can earn more money on their investment.
Access to Funds: Once the GIC term is complete, students can access the funds to cover their living expenses and other associated costs while studying in Canada.

However, there are also some disadvantages to using a GIC as proof of funds for international students studying in Canada. Some of these disadvantages include:

Limited Flexibility: GICs are typically inflexible investments, with a fixed term and limited options for early withdrawal.
Early Redemption Penalties: Some GICs may impose penalties for early redemption, which can reduce the return on the investment.
Exchange Rates: International students must transfer their funds to Canadian dollars, which may involve currency exchange fees and fluctuations in exchange rates.
Limited Coverage: GICs may not cover all of the expenses associated with studying in Canada, such as medical insurance or travel expenses.

So, GICs are a popular way for international students to demonstrate proof of funds when applying for a study permit to study abroad in Canada. While there are advantages and disadvantages to using a GIC as proof of funds, it is important for students to carefully consider their options and choose the investment strategy that best meets their needs and financial goals.

How To Get GIC for Studying in Canada

Getting a Guaranteed Investment Certificate (GIC) for studying in Canada is a relatively straightforward process, but it does require some planning and preparation. Here are the steps you need to follow to get a GIC for studying in Canada:

Research the GIC options: The first step is to research the different GIC options available for international students in Canada. Some of the major Canadian banks that offer GICs for international students include ScotiaBank, ICICI Bank Canada, and
HSBC Bank Canada. Each bank has its own requirements and application process, so it's important to research and compare the options before making a decision.
Choose the bank and plan: Once you have researched the different GIC options, choose the bank and plan that best suits your needs. Typically, GICs for international students have a minimum investment amount of CAD $10,000 and a fixed term of 12 months, with a guaranteed interest rate. Some banks may offer longer-term GICs with higher interest rates, but these may not be suitable for students who only plan to study in Canada for a short period of time.
Open an account: Once you have chosen the bank and plan, you will need to open an account with the bank. This can usually be done online or in-person, depending on the bank's policies. You will need to provide identification documents, such as your passport or driver's license, and proof of enrollment in a Canadian educational institution.
Transfer funds: Once your account is open, you will need to transfer the CAD $10,000 investment amount to the bank. This can be done through a wire transfer or online transfer, depending on the bank's policies. You may also need to pay a transfer fee and exchange rate fees, depending on the bank's policies.
Wait for confirmation: Once the funds have been transferred, you will need to wait for confirmation from the bank that your GIC has been activated. This can take several business days, depending on the bank's policies.
Use GIC for proof of funds: Once your GIC has been activated, you can use it as proof of funds when applying for your study permit. You will need to provide documentation from the bank confirming the investment amount and term of the GIC, along with any other required documentation for your study permit application.
Access funds: After the 12-month GIC term is complete, you will be able to access the funds, along with any interest earned, to cover your living expenses and other associated costs while studying in Canada.

It's important to note that there are some risks associated with GICs, including the possibility of early withdrawal penalties and fluctuations in exchange rates. It's also important to carefully review the terms and conditions of the GIC plan before investing, to ensure that it meets your needs and financial goals.

So, getting a GIC for studying in Canada involves researching the different options, choosing a bank and plan, opening an account, transferring funds, waiting for confirmation, using the GIC for proof of funds, and accessing the funds after the 12-month term. By following these steps and carefully reviewing the terms and conditions, international students can use GICs as a reliable and convenient way to demonstrate proof of funds when applying for their study permit.

Who is eligible for GIC Canada?

A Guaranteed Investment Certificate (GIC) is a popular financial tool used by international students to demonstrate proof of funds when applying for a study permit in Canada. To be eligible for a GIC, there are a few requirements that applicants must meet. Here are the main eligibility criteria for a GIC in Canada:

Must be an international student: GICs are only available to international students who have been accepted into a designated learning institution (DLI) in Canada. Domestic students are not eligible for GICs.
Must meet the financial requirements: To be eligible for a GIC, international students must show proof that they have sufficient funds to cover their living expenses for the duration of their studies in Canada. The exact amount of funds required will depend on the length of the program, the location of the institution, and other factors. Generally, international students must show proof of at least CAD $10,000 to be eligible for a GIC.
Must have a study permit: To apply for a GIC, international students must have a valid study permit or be in the process of applying for one. A GIC can be used as proof of funds when applying for a study permit, but it cannot be used to apply for a study permit on its own.
Must meet the age requirements: Some banks may have age restrictions for GICs, so it's important to check with the specific bank to ensure that you meet their age requirements. In general, most banks require that applicants be at least 18 years old to be eligible for a GIC.
Must have a Canadian bank account: To receive a GIC, international students must have a Canadian bank account. This can be opened before or after arriving in Canada, but it must be opened with a bank that offers GICs for international students.
Must meet the bank's requirements: Each bank has its own requirements and application process for GICs, so it's important to research and compare the options to ensure that you meet the bank's specific requirements.

In addition to meeting these eligibility criteria, international students should also be aware of the risks associated with GICs, such as early withdrawal penalties and fluctuations in exchange rates. It's important to carefully review the terms and conditions of the GIC plan before investing, to ensure that it meets your needs and financial goals.

So, international students who have been accepted into a designated learning institution in Canada and have sufficient funds to cover their living expenses may be eligible for a Guaranteed Investment Certificate (GIC). To apply for a GIC, students must have a valid study permit, a Canadian bank account, and meet the specific eligibility criteria of the bank offering the GIC. By carefully reviewing the terms and conditions and understanding the risks associated with GICs, international students can use this financial tool to demonstrate proof of funds when applying for their study permit in Canada.

How does GIC Canada Work?

A Guaranteed Investment Certificate (GIC) is a type of investment that international students can use to demonstrate proof of funds when applying for a study permit in Canada. Here is how GICs work for international students:

Choose a bank and GIC plan: International students can choose from a range of Canadian banks that offer GICs for international students. Each bank may have different GIC plans with different terms and conditions, such as the minimum investment amount, the interest rate, and the duration of the investment. It's important to research and compare the different options to find a plan that meets your financial needs and goals.
Deposit funds into a Canadian bank account: Before applying for a GIC, international students must have a Canadian bank account. They can deposit the required amount of funds into the account, which will be used to purchase the GIC. The funds must remain in the account for a specified period of time, as outlined in the GIC plan.
Purchase the GIC: Once the funds have been deposited into the Canadian bank account, international students can apply to purchase the GIC. The bank will require proof of enrollment at a designated learning institution (DLI) in Canada and proof of sufficient funds to cover living expenses for the duration of the program. The bank will also require a copy of the student's passport and study permit.
Receive the GIC certificate: Once the application has been approved and the GIC has been purchased, the international student will receive a GIC certificate. This certificate serves as proof of funds and can be submitted as part of the study permit application.
Receive interest payments: GICs typically offer a fixed interest rate for a specified period of time, such as one or two years. International students will receive interest payments on the GIC at the end of each term, as outlined in the GIC plan.
Withdraw the funds: At the end of the GIC term, international students can withdraw the funds from the Canadian bank account. Some banks may charge an early withdrawal penalty if the funds are withdrawn before the end of the term.

Overall, GICs provide a reliable and convenient way for international students to demonstrate proof of funds when applying for a study permit in Canada. By choosing a reputable bank and a GIC plan that meets their financial needs, international students can use this investment tool to help support their education in Canada.

How much GIC is required for Canada Student

The amount of Guaranteed Investment Certificate (GIC) required for a Canada student visa application depends on the cost of living in the city where the student will be studying. As of 2022, the Canadian government requires international students to have at least $10,000 CAD in available funds plus the cost of tuition for their first year of study. This amount is meant to cover living expenses such as accommodation, food, transportation, and other miscellaneous expenses.

To meet the proof of funds requirement, international students can purchase a GIC from a participating Canadian financial institution. The GIC must be in the amount of $10,000 CAD and held for a period of 12 months. During this time, the student will receive monthly interest payments that can be used to cover living expenses.

It's important to note that the GIC requirement is only one of several ways to meet the proof of funds requirement for a Canada student visa application. Other acceptable forms of proof of funds include bank statements, proof of a student or education loan, and a letter from a financial sponsor.

In addition to the GIC requirement, international students should also be prepared to provide evidence of their ability to pay for their education in Canada beyond the first year. This may include providing a letter from a financial sponsor or proof of income.

Overall, it's important for international students to carefully research and plan for their financial requirements when studying in Canada. This will ensure that they have the necessary funds to cover all of their expenses and meet the requirements of their student visa application.

Wrap up

Guaranteed Investment Certificates (GICs) are a reliable and convenient way for international students to demonstrate proof of funds when applying for a study permit in Canada. GICs offer a fixed interest rate and help students cover their living expenses for the first year of study. However, it's important to note that the GIC requirement is only one of several ways to meet the proof of funds requirement for a Canada student visa application.

International students should carefully research and compare different GIC plans and banks to find a plan that meets their financial needs and goals. They should also be prepared to provide evidence of their ability to pay for their education in Canada beyond the first year.

Overall, GICs are a valuable tool for international students to help support their education in Canada and ensure that they have the necessary funds to cover their expenses.

FAQs

1. What is a GIC?
A Guaranteed Investment Certificate (GIC) is a type of investment offered by Canadian financial institutions. It is a secure and low-risk investment option that offers a fixed interest rate over a specific period of time.

2. Why do international students need a GIC for studying in Canada?
The Canadian government requires international students to have sufficient funds to cover their living expenses while studying in Canada. The GIC serves as a proof of funds and provides financial support to students during their first year of study.

3. How much money is required for a GIC for studying in Canada?
As of 2022, international students must have at least $10,000 CAD in available funds, in addition to the cost of tuition, to meet the proof of funds requirement for their Canada student visa application. This amount can be purchased as a GIC from a participating Canadian financial institution.

4. How long must a GIC be held for?
The GIC must be held for a period of 12 months and the funds will be released in monthly installments to the student to cover their living expenses.

5. Can a GIC be used to pay for tuition?
No, a GIC cannot be used to pay for tuition. It is meant to cover living expenses such as accommodation, food, transportation, and other miscellaneous expenses.

6. Can a GIC be cancelled or refunded?
A GIC cannot be cancelled or refunded before the end of the 12-month period. However, in certain circumstances such as a visa refusal, the financial institution may allow for the cancellation of the GIC and the release of funds to the student.

7. Are there any fees associated with purchasing a GIC?
Yes, there may be fees associated with purchasing a GIC such as account setup fees, transfer fees, and early withdrawal fees. International students should research and compare different GIC plans and banks to find a plan that meets their financial needs and goals.

8. What happens after the 12-month GIC period ends?
After the 12-month period, the GIC will mature and the student will have access to the remaining funds, which can be used for any purpose. Some financial institutions may offer the option to renew the GIC for another 12-month period.