As an international student, the cost of living is quite expensive. It is only natural to desire a reasonable GIC rate.
Getting the best GIC rate does not necessarily give you money. Instead, it is an effective way of managing your money as an international student. It does this by putting you at low risk and making you less vulnerable to economic crises.
The banks give these rates, so logically, you must know about these banks to understand the different GIC rates in Canada.
After a thorough examination of different GIC rates, we concluded that the CIBC Student GIC program is the best GIC rate on the market.
They have a good reputation for the easy online application process. In addition, they offer free student bank accounts when you arrive in Canada; CIBC bank is not the only affordable option — it makes the most sense for other reasons. Follow through our article to learn more about the best GIC rates in Canada.
Why International Students Should Choose The Best GIC Rates in Canada?
Getting the best GIC rate does not necessarily give you money; instead, it is an effective way of managing your money as an international student.
It does this by putting you at low risk and making you less vulnerable to economic crises.
Signing up for GIC is like having a savings account where you deposit money, although not a typical savings account where you expect yearly returns. Instead, they safeguard your money for an agreed time.
Practically, students receive $2000 on their first arrival in Canada; then, the remaining $8000 is paid out in installments over the following year.
When you sign up for GIC Canada, you are not signing up for a one-time contract with a bank. You also sign up for a bank account at that bank when you come to Canada.
To withdraw money on your GIC certificate, you have to sign up for a bank check account, which is a bank account used for daily expenses, a current account.
When choosing a GIC provider, you should also consider bank account options for international students with a charge rate in mind.
The Best GIC Rates In Canada For International Students
There are so many GIC rates in Canada based on a particular period. When choosing these rates, the period is a crucial factor you must consider since they will lock your money there for that time.
- 1-Year GIC Rate In Canada For International Students
The 1-Year GIC rate In Canada For international students is a plan that matures in a year. It typically locks out your money for the specified period while you get the interest rate as agreed by the institution you put your money in.
Hubert Financial presently provides a 2% rate, the best GIC rate, followed closely by Oaken Financial at the rate of 1.90% Saven Financial at 1.85%, and Wealth One and With Financial share offering a 1.80% rate. However, they all require a minimum investment of $1000.
- 3-Year GIC Rate In Canada For International Students
The 3-Year GIC rate in Canada for international students is a plan that matures in three years. It typically locks out your money for the specified period while you get the interest rate as agreed by the institution you put your money in.
Wealth One bank offers the best GIC rates in Canada, with three years of GICs: 2.50%. One of Canada’s largest online banks, EQ Bank, is near the back, followed by Oaken Financial GIC with 2.40%. All GICs on this list have a minimum investment of $ 1,000 – except the Home Bank, which has a minimum value of $ 5,000. CDIC verifies all GICs.
- 5-Year GIC Rate In Canada For International Students
It is a plan that matures in five years. It typically locks out your money for the specified period while you get the interest rate as agreed by the institution you put your money in.
Hubert Financial has earned the top spot for five years with the best GIC rates of 3.00%, followed by Wealth One, Oaken Financial, and Saven Financial, with GIC values of 2.75% and 2.70% and 2.65%, respectively. All GICs on this list are CDIC certified and have a minimum investment of $1,000.
How To Calculate The Best GIC Rates In Canada For International Students?
GIC rate depends on the terms agreed between you and the financial institution you choose. GIC rate may yield its interest monthly, every six months, annually, at maturity, or on an agreed date.
Practically, this is how the interest is compounded; as illustrated below:
In simple interest, the bank offers interest based on initial principal only. So, for example, if you invested $200,000 into a two-year GIC with a 1.25% return, you’d receive $2,500 in interest annually. By the end of the second year, the interest payout will total $5,000.
Whereas in compound interest, you earn interest on the initial principal, and the interest is earned at every interval with compound interest.
Assuming you made the same investment as above, with compound interest, you’d make $2680.00 in interest after one year and $5360 at the end of the two years. That’s an extra $360.00
Read also: Which Mobile Network Is Best In Canada?
How To Apply For The Best GIC Rate In Canada For International Students
Applying for the best GIC rate for international students is simple. Below are the steps you can follow:
- Sign Up For A Bank-Protected Email Service
Students must register online at an accredited Canadian bank, i.e. ICICI bank of Canada or Scotia Bank of Canada, by filling out personal details. Then, sign up for a secure Canadian banking email service.
Once you are registered, you will receive a password, which you can log into your secure email account. The bank will send the GIC request form to your secure email account.
- Apply for a Student GIC Program
After you sign up for a secure email account, you will receive an email with a link to the application form for the Student GIC program.
Students can submit a Student GIC Program application form online or offline.
To get online mode, you must complete the form entirely and send it along with a scanned copy of your logbook and online passport via their secure email account.
In offline mode, you can download the form to a secure email account, print it out and complete it with your signature and send it in person to the ICIC designated bank with your passport from the University of Canada / SPP College and your passport. Application processing time is five business days.
- Enter Your Account
After submitting the GIC Student Program Application, you will receive an ‘Investment Account Number’ and financial details in your secure email. Support a ‘Canadian Student GIC Program’ account for C $10,000, plus C $150 as processing money using any bank account in India.
Funds sent to fund your GIC account with ICICI Bank or Scotia Bank in Canada must come from a student account or a joint account held by an Indian student.
After returning $10,000 to your GIC account with a Canadian bank, you will receive an ‘Investment Balance Certificate’ in your Investment account.
Complete Documentation Processes In Canada For International Students
When an international student arrives in Canada, you must visit any bank branches to complete the documentation requirements, that is, to open a personal bank account with ICIC Bank Canada or an extension of Scotia Bank and GIC issuance.
C $ 2,000 will be credited to your account, and $ 8,000 will be credited to your GIC account for one year, which will be paid to you every month in equal installments.
Carry the following documents with Bank-Investment Balance Confirmation, Study Permit, Official Passport, and letter of entry from a Canadian university or SPP College.
Compound interest is the most common payment method and pays attention to the payment system. If you add up the monthly interest in the annual payment, you will earn even more.
When signing a GIC contract, whether principal or how the bank should pay the interest, you cannot change the terms and conditions.
Payment terms will affect the amount of interest you will eventually earn, so you must review them thoroughly.