How To Purchase A GIC For Study In Canada

Guaranteed Investment Certificates (GICs) serve as proof of funds, allowing you to apply for a Canadian visa. As a student, you need a GIC For Study In Canada.

This is for students who pick the SDS (Student Direct Stream) program as their academic path.

You won’t need any further financial documentation to show the IRCC (Immigration, Refugees, and Citizenship Canada) that you have enough money to cover your tuition and living expenses.

How Does The GIC (For Study In Canada) Work

How To Open A GIC Account

To apply for a study permit through the Student Direct Program after receiving an acceptance letter from a Canadian learning institution, you’ll need a Guaranteed Investment Certificate.

Some Canadian financial institutions, such as RBC, let you open an investment account online and purchase a GIC with cash transferred directly from your home country.

To be eligible for the SDS program, international students must acquire a one-year non-redeemable GIC worth $10,000 CAD (or $11,000 CAD if they plan to study in Quebec).

Guaranteed-Return GICs (GRICs) for international students earn a fixed rate of interest that is predetermined at the time of purchase.

You’ll receive an Investment Confirmation or GIC contribution details once you wire the funds to the financial institution and acquire a qualifying GIC.

How To Apply For A Study Permit Through SDS

You have to attach the GIC Investment Certificate from the bank as proof of money when you start your study permit application through the SDS stream.

In addition, you must normally present proof of residency in an SDS-qualified nation, an admission letter from a Canadian post-secondary learning institution, proof of tuition price payment for the first year of your study program, and the results of an appropriate language test (IELTS for English or TEF for French).

To apply for a study permit, you may also need to receive a medical check and a police certificate.

How To Get Your Money Once You’ve Arrived In Canada

You must visit your bank office when you arrive in Canada to verify your identity, confirm the details of the personal account (typically a checking account) into which you intend to deposit your GIC payments, and submit payment instructions for deposits.

You can start a student account with any bank of your choice if you don’t already have one. If you have an RBC GIC, having an RBC student account will allow you to easily move your monthly distributions to your account.

Your initial GIC will be redeemed for its full value, which includes your principal investment and accrued interest, once you validate this information.

A $2,000 CAD deposit will be made to your deposit account, and the remaining monies will be placed in a new GIC.

How To Get A Monthly Check From Your GIC

The new GIC’s principal will be divided into 12 equal payments, which you will receive every month for a year, together with earned interest.

This safe investment will generate interest and provide you with a fixed monthly income to help you pay for some or all of your living expenses while you study in Canada.

Read also:  The Best GIC Rates In Canada For International Students

Types Of Guaranteed Investment Certificate (GIC) For  Study In Canada 

In Canada, there are three varieties of GICs, each with its method of determining returns or earnings.

Guaranteed Return GICs:

These GICs have a fixed interest rate and both your principal and interest are guaranteed.

Interest Rate-Linked GICs: 

These GICs have a variable rate of interest that is tied to the prime rate of the financial institution. Your principle is secure, but your returns may fluctuate over time due to interest rate changes.

Equity-Linked GICs:

Equity-linked GICs, like regular GICs, guarantee your principal but pay a variable interest rate dependent on the success of the stock portfolio in which they invest.

Equity-linked GICs, such as those offered by the Royal Bank of Canada (RBC), guarantee a minimum rate of return while also allowing for much higher earnings.

How To Apply For An RBC GIC For Study In Canada 

International students from India, China, Antigua and Barbuda, Brazil, Colombia, Costa Rica, Peru, Saint Vincent, the Grenadines, and Trinidad and Tobago can open a GIC with the Royal Bank of Canada (RBC).

RBC offers GICs to students from qualified countries who apply online. Simply complete the application and upload your documents to RBC’s secure platform.

RBC will open your investment account within three business days of receiving your paperwork and will email you information on how to wire funds to acquire an RBC GIC.

A few days after your money is received, you’ll receive an Investment Confirmation or GIC Contribution Details Document.

You’ll need to schedule an appointment and go to an RBC location to verify your identity and set up your GIC redemption payments once you arrive in Canada. For your appointment, you should bring the following documents:

  • Your travel document
  • Your permission to study

You can also open a checking account with RBC to act as your deposit account during your consultation.

Why Do You Need A GIC For Students In Canada

Show Evidence Of Financial Support For SDS

If you are accepted into a Canadian learning institution and are a legal resident of one of 14 countries, your study permit may be eligible for expedited processing through the Student Direct Stream (SDS) (India, China, Philippines, Brazil, Vietnam, Antigua and Barbuda, Colombia, Costa Rica, Morocco, Pakistan, Peru, Saint Vincent, and the Grenadines, or Trinidad and Tobago).

When applying for a study visa through the Student Direct Stream, you must provide a Guaranteed Investment Certificate (GIC) from a participating financial institution to show that you have enough money to maintain yourself and your family in Canada for the duration of your studies. If

Cover The Cost Of Living In Canada

As an international student, the cost of living in Canada can be fairly costly, but a GIC can assist cover some or all of your living expenditures, such as housing, utilities, groceries, phone, and entertainment.

It’s vital to remember that your GIC isn’t intended to cover your tuition costs. You must separately present documentation of paying tuition for your first year of study.

While You Study, You Can Earn A Monthly Income

With an international student GIC, rather than receiving the entire amount as a lump sum, you get a percentage of your investment as income each month, allowing you to better budget and manage your money as you adjust to your new school and life in Canada.

You’ll Have Easy Access To Your Money And The Chance To Earn Interest.

Even if you do not qualify for the SDS program, you must still provide proof of financial support when applying for a study permit.

You don’t require a GIC from a participating Canadian financial institution in this scenario; you can also present documentation of a student loan, scholarship, or other kinds of support, proof of tuition and housing expenses paid, or paperwork demonstrating sufficient funds in your bank account (s).

Opening a GIC, on the other hand, can make it easier to access your savings once you are in Canada while also allowing you to receive interest.

Read also:  How To Choose A GIC For Study Permits In Canada

Tips On Choosing The Right GIC As An International Student To Study In Canada 

  • Ensure that the bank you select has a strong presence in Canada: Some international students open GICs with a bank based in their home country that has a subsidiary or partner bank in Canada.

While this may appear to be easier at the time of application, it can make accessing your cash more difficult once you are in Canada. In an ideal world, you’d pick a bank with a strong presence in your province in Canada, so you can find a branch close to your home.

  • Check to see if the bank in your country offers GICs: GICs are only available to international students in a few geographic areas at most Canadian banks. In India, China, Antigua and Barbuda, Brazil, Colombia, Costa Rica, Peru, Saint Vincent, the Grenadines, and Trinidad and Tobago, for example, RBC offers foreign student GICs.

  • Examine the bank’s student banking accounts: GICs are just the beginning of your banking relationship with a Canadian financial institution. To collect funds from your GIC each month, you’ll also need a checking account.

Opening a checking account with the same bank will help you consolidate your funds and make transactions more simple. To help fulfill your financial needs, some banks, such as RBC, provide specialist student banking packages. To choose the best bank account, look into other financial goods, such as credit cards, and compare banking costs and offers.

  • Examine how the funds will be sent to you: For international student GICs, Canadian banks may offer various payment schedules. With an RBC GIC, for example, you’ll get a $2,000 initial deposit, followed by 12 equal monthly installments from the remaining principal and interest.

Receiving a greater first payment as an overseas student is advantageous because you will need funds to set up your place of residence and purchase the necessary equipment.

  • Ease of obtaining a refund: As an international student, there is a potential that your study visa application may be denied or that you will choose not to study in Canada. You’ll need to get your GIC investment repaid in such circumstances. Make sure the bank you chose offers a simple and convenient foreign student GIC refund process.

  • Application procedure: Convenience is essential in any financial relationship. For international student GICs, banks such as RBC offer a straightforward online application process. You can schedule an appointment to visit your nearest RBC bank and begin receiving funds once you arrive in Canada.

  • GIC processing time: If you have a tight deadline for your study permit application or if you started the procedure late, banks with speedier processing periods may be a better option.

Note:

You can’t just go to any bank and buy a GIC. It’s best to keep to the list of Indian banks that have been permitted to offer GICs in Canada. These are some of them:

  • ICICI bank
  • Canadian Imperial Bank of Commerce (CIBC)
  • SBI Canada
  • Scotiabank
  • HSBC Bank of Canada

Conclusion 

We hope this answers all of your questions about how and why a GIC is required for your Canadian education.

A GIC is one of the simplest ways to show that you have enough money to apply for a Canadian visa.

It’s also one of the wisest financial decisions you can make as a first-year student in Canada.

We wish you every success in your academic and professional endeavors in Canada. Simply contact IDPs foreign education consultants with any questions.

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