Are you a student looking for smart ways to handle money during your studies in Canada? Well, there is some good news for you. Guaranteed Investment Certificates (GIC) are a great financial tool that can help you save more money and ensure that your future is secure. GIC programs are specifically designed for both international and local students, offering them unique benefits. Let’s explore the world of GICs. These are the investment options that you can take advantage of! Are you ready to uncover this new world of financial opportunities and learn how to best invest your hard-earned money?
How does GIC work?
It's a simple idea; students must deposit some money from their original bank account at the Canadian currency rate into the GIC account in which they receive interest. This is one of the safest investments with little or no risk. Moneyback is guaranteed. The amount of money that students must deposit into this account is fixed, and students will receive interest on that amount every month. This is in line with Canadian government regulations for students coming to study under the Study Direct Stream (SDS) programme. It is an important document or evidence of funding for an applicant to study in Canada.
GIC functions as a savings account under the Student Direct Stream (SDS). It traditionally provides steady returns over speculated time to all international students. People who want to sign up for a course through SDS must first deposit an entire year's living costs in a Canadian bank. A GIC interest rate is not changed unless you select one with an option for variable interest. Typically, GICs are not redeemable or withdrawable.
New GIC for Students in Canada
Canada regularly amends its Immigration Rules so that immigration takes place in a controlled manner. Recently, they have made a new announcement, GIC Increase Canada. Students from all over the world study in Canada, and according to Student Immigration Laws in Canada, they are supposed to pay for a Guaranteed Income Certificate, also known as GIC, while their insurance remains in Canada. This GIC refers to the money that is paid to students while they are studying. He or she can withdraw the GIC amount upon arrival in Canada for their needs like housing, transport, or fees.
As per the new regulations, all students should obtain a GIC (Guaranteed Income Certificate) of $20,635 CAD. This rule will affect millions of students who aspire to obtain the Canadian Study Visa. According to the Minister of Immigration, Canada, this increase has been done so that students can afford the high rate of inflation.
You can also read: List of Documents Required to Study Abroad Application
Is a GIC account mandatory for all international students?
Any Indian student who wants to study in Canada is required, by law, to have a GIC account. It provides an assurance to the Canadian government that Indian students in Canada have sufficient money to cover their living expenses for a year in Canada. It ensures faster processing for a study permit or a Canadian visa. Candidates must offer relevant proof of their bank status. Such candidates or students are required to make the deposit of a prescribed amount of money, which is CAD 20,635 plus a Bank processing fee with one of those Canadian Banks that are duly registered and authorised.
Steps Involved in Opening a GIC account in Canada?
For Indian students, the process to open a GIC account in Canada is simple. The various steps involved are as follows:
- Choosing Authorised Bank: You need to choose an authorised bank wisely to open a GIC account in Canada.
- Submitting Application Online: Once you are done with the process, you need to submit the GIC program application online. In addition, you need to upload a copy of your passport and the documents of the admission letter.
- Deposit Amount: You need to deposit an amount of CAD 20,635 plus a Bank processing fee.
In the end, you will receive your investment balance confirmation and certificate of investment.
Benefits of GICs for students
As a student, managing your finances can be challenging. Balancing tuition fees, textbooks, and living expenses is no easy task. That's where Guaranteed Investment Certificates come into play.
Safety and security for students are two main advantages of GICs. In contrast to high-risk investments like stocks or cryptocurrencies, GICs provide a guaranteed return on your investment. This simply means that you will be at peace knowing that your money is secure and can even increase over time.
GICs are also not risky because they provide a steady flow of income. With a pre-determined interest rate and defined termination date, you can forecast in advance, thus managing your finances. So, whether you're planning to use the funds for next semester's tuition fees or just simply want to save up some money before your trip post-graduation, GICs would let you earn income without having to exert any effort.
Another benefit of the new GIC options is their flexibility. There are many financial institutions that offer different terms, from three months to a number of years, dictating an option that is most suitable for your needs. Furthermore, some banks provide redeemable or "cashable GICs" that allow early withdrawal if needed.
Furthermore, you can open a GIC account, and as a student, you might be provided with special benefits reserved for young savers only. Such benefits could be higher interest rates or no fees for saving accounts as compared to regular ones.
Conclusion
Always do your homework before investing in any specific product or provider. Consult a financial consultant, if necessary, so that you are able to make informed decisions on how to increase your savings during your academic journey in the best way possible. No matter whether you are an international student searching for a means to establish your credit history or a domestic student trying to find financial stability while studying, you may consider the Canadian GIC options developed specifically for students, as it could be undoubtedly rewarding. Invest prudently and strategically in the right kind of GIC plan, and manage your funds carefully enough, so that you can ensure that academic pursuits go as smoothly as planned.
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