Exploring the World of International Student GICs is crucial for those who would like to pursue their studies in Canada through the Student Direct Stream Program. The GIC is the Guaranteed Investment Scheme essential for international students because they will eventually need a Study Visa. This implies that you have to demonstrate your ability to show fund proofs of one year through a Canadian bank account.
Exploring the World of International Student GICs – Why is GIC requirement necessary?
A GIC of $10,000 CAD value is mandatory for those who require a study permit under the Student Direct Stream. The international students must be able to showcase that they can financially assist themselves. GICs provide a fixed interest rate through the investment over a certain duration. GICs have a term of six months to three years. A few GICs also consist of a five-year period. This time period implies that individuals can’t withdraw their money during a specific length. The amount invested into the bank account will surely come back to you. However, only after the term ends.
Benefits of GIC
The following benefits of GIC are crucial for all international students seeking to obtain education and access a study permit in Canada:
Opening a GIC is convenient
You will simply have to search for banks in Canada and understand their requirement. This means whether they will open your GIC in person or through electronic procedure. The digital process hardly takes twenty minutes or so. Transferring funds from your savings account to GIC will be simple.
GIC will get you enhanced interest rates
Guaranteed Investment Certificates will get the better of you in terms of interest rates compared to traditional savings accounts. This is especially true for online banks offering GIC.
Guaranteed Investment Certificates have fixed rates
As far as financial markets are concerned, they undergo too many changes, including the real estate, bond, and stock markets. When choosing a fixed interest rate, GIC will lock your interest rate and offer the same throughout the term, up to five years. Now, the market fluctuations don’t impact the interest rate during the fixed period and will be constant.
You can anticipate the returns
Investors can easily anticipate their returns as GICs have a low-risk factor. The overall payment will determine your fixed interest rate, and your bank can’t reduce your returns for the entire tenure. Hence, you will know precisely when you will receive the returns and the amount you will get. This also indicates investment without risk.
Banks offering GIC for a Canadian study permit or visa
International students must make it a point to apply for a GIC before one month of applying for a study visa. The three chief Canadian banks offering GIC are:
- ICICI Bank, Canada
- Scotia Bank, Canada
- SBI, Canada
Exploring the World of International Student GICs – tips to consider before purchasing a GIC
Consider different alternatives
Look around for different options of GIC and carefully analyze the terms and limits. The idea is to not miss out on specific opportunities framed for international students. These could be appropriate timeframes and conditions suitable for them. Do ask your college or university if they can suggest some GIC institutions.
Gain clarity
When you consult a financial representative, you must ask what is unclear to you regarding the GIC terms and conditions. Remember that certain clauses or terms of banks could be complex, and it is vital to understand them fully before deciding anything.
Make sure you know about the following GIC things as it is your right:
- GIC term indicates the years, such as one year or maybe three years.
- When should the interest payment be paid. It could be annually or maybe toward the end of the term.
- What will be the interest rate in the case of a fixed interest rate?
- Understand the calculation of interest rates in case of any changes. Also, know the actual interest rate at the time of purchase. Moreover, learned about the investment period’s interest rate and how to calculate it.
- Ask them if any other additional charges apply.
- Know the GIC withdrawal before the expiry of the investment date. Will you face any penalties for this? What will be the impact of this on the overall interest rate that you will receive?
Student Direct Stream – Get your application ready
Ensure you purchase a GIC that fits the Student Direct Stream eligibility criteria. It is vital to check out the Canadian government’s website to know the eligible list of financial firms for GICs.
Make sure you can demonstrate any one of the following as part of your GIC purchase:
- An attestation letter;
- An Investment Balance Confirmation
- GIC certificate
- Investment Directions Confirmation
