How To Choose A GIC For Study Permits In Canada

Guaranteed Investment Certificate, also known as GIC, is a banking system that provides a safe investment product and other financial institutions in Canada.

If you have been admitted to a designated Canadian educational institution, naturally, you should apply for a study permit.

To be eligible for a Student Direct Stream (SDS) study permit in Canada, you need a Certified Investment Certificate (GIC) from a Canadian financial institution to prove that you can support yourself financially in Canada.

However, as an international student, GIC may be more critical than your application for a study permit.

Therefore, we will consider how GICs work and why you need them and share tips on choosing the right GIC for your study permits in Canada.

How To Get Your Money Back After Arriving In Canada

The first step in accessing your funds is to visit your bank branch to verify your identity, verify the personal account details into which you want to deposit your GIC payments, and provide deposit payment instructions.

Then, if you do not already have a test account, you can open a student account at your favorite bank.

For example, if you have a GIC with RBC, having a student account with RBC will make it easier to transfer your monthly payments into your account.

Once you have verified this information, RBC will use your initial GIC at its total value, including your primary investment and accrued interest.

The initial payment of $2,000 will be credited to your deposit account, and the remaining funds will be invested in the new GIC.

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Types Of GICs For Study Permits In Canada

There are only three GICs in Canada and each method of calculating returns or earnings:

Interest-Related GICs

Interest-Related GICs provide a flexible interest rate(unlike Guaranteed Return GIC) linked to a bank. Your principal is guaranteed, but your benefits may vary over your period, depending on interest rate fluctuations at the moment.

Guaranteed Return GIC

These GICs offer a fixed interest rate and guarantee principal and interest.

Equity-Linked GICs

In this type, you are assured of your principal but offer a flexible interest rate based on the stock portfolio’s performance in which you are invested.

Royal Bank of Canada (RBC) offers GIC-connected equity. Which guarantees a low rate of return with the potential to earn a considerable profit.

How Does GIC For International Students Work?

After receiving a letter of acceptance from a Canadian institution of study, you need a Guaranteed Investment Certificate to apply for a study permit in a Direct Student Program.

GICs for international GIC-certified international students earn a fixed amount of interest determined in advance at the time of purchase.

International students must purchase a GIC minimum of $10,000 (or $11,000 if they plan to study in Quebec) for one year to qualify for the SDS program.

As soon as you send money to a financial institution and purchase the appropriate GIC, you will receive an Investment Certificate or a GIC donation details document.

Why Does An International Student In Canada Need GIC?

There are many reasons why an International student needs GIC. Some of those reasons include:

Earn A Monthly Income While You Study

As an international GIC student, you get a portion of your investment as a monthly salary instead of all the money to plan your budget and manage your finances better as you settle into your new school and life in Canada.

Show Proof Of SDS Financial Support

Suppose you are applying for a Student Direct Stream study permit. In that case, you need a Guaranteed Investment Certificate (GIC) and a participating financial institution to prove that you have enough money to support yourself and your family in Canada during your study period.

For example, if you plan to study in Quebec, you need a GIC of $11,000, while other states require a GIC of $10,000.

Your study permit may be eligible for immediate consideration via Student Direct Stream (SDS)

Easy Access To Your Finances And The Opportunity To Earn Interest

Unlocking GIC can make it easier to access your finances when you arrive in Canada and allows you to earn interest on your money.

Even if you do not qualify for the SDS program, you still need to provide proof of financial support for your study permit application.

Cover The Cost Of Living In Canada

GIC can, to a reasonable degree, cover some or all of your living expenses, including accommodation, utilities, groceries, telephone, and entertainment costs. However, it is essential to note that your GIC is not intended to cover your tuition fees.

As an international student, the cost of living in Canada is very high, but you should know that your GIC is not intended to cover your tuition costs.

How To Earn Monthly From Your GIC

According to the GIC policy, the principal amount in the new GIC is always shared into 12 equal payouts, plus interest earned, which you will receive monthly for one year.

This secure investment will allow you to make interest and earn a fixed monthly income to cover some or all of your living expenses in Canada while you study.

How To Apply For Your SDS Study Permit

When you start applying for an SDS study permit, you need to attach a bank GIC Investment Certificate as proof of finance.

In addition, you must provide proof of your residency in the SDS country, your letter of acceptance from a post-secondary study institution in Canada, proof of tuition fee for the first year of your study program, and results from eligible.

Language test (English IELTS or French TEF). You may need to get a medical examination and a police certificate to apply for a study permit.

How To Apply For RBC GIC

To apply for RBC GIC, you need to set your schedule and visit the RBC branch to verify your identity and set up your GIC redemption payments. In addition, you must bring the following documents to be nominated:

  • Your passport
  • Your study permit

You may also open a test account with RBC to act as your deposit account at your appointment.

Students from eligible countries can apply for GIC via RBC online. First, complete the application on the RBC secure portal and upload your documents.

Once your documents have been reviewed, RBC will open your investment account within three business days and send you instructions on how to send money to purchase RBC GIC.

In addition, you will receive an Investment Certificate or GIC Contribution Details Document within a few days of receiving your funds.

Choosing The Right GIC For Study Permits In Canada As An International Student

  • Check The Student Bank Accounts

Acquiring GIC is just the beginning of your banking relationship with a Canadian financial institution.

Opening a checking account at the same bank can make your purchase more accessible and help you consolidate your finances.

In addition, some banks, such as RBC, have specialized student banking products to meet your financial needs better.

  • Compare GIC Fees

Banks usually charge a hosting fee to open GIC for international students. This amount which is usually a few hundred dollars should be added to your bank account when you open your GIC.

  • GIC Processing Time

If your study permit application has a fixed deadline or if you start the process late, banks that offer instant processing sessions may be a better decision.

Important Note

GIC is more than just financial proof. It gives you a steady income to reduce some of your living expenses during your study time.

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