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Managing Finances as a Student in Canada: A Guide to Guaranteed Investment Certificates (GICs)

Are you a student seeking effective financial strategies for managing your expenses during your studies in Canada? Well, there’s positive news for you. **Guaranteed Investment Certificates (GIC)** serve as a valuable financial tool, aiding you in saving money and securing your future. Tailored for both international and local students, GIC programs offer unique benefits. Let’s delve into the realm of GICs and explore the investment options available to you. Are you ready to uncover a new world of financial opportunities and discover the optimal ways to invest your hard-earned money?

Understanding GICs

The concept is straightforward: students deposit a specific amount from their original bank account at the current Canadian currency rate into a GIC account, earning interest on the sum. This low-risk investment ensures a guaranteed return, and the deposited amount remains fixed. Monthly interest accrues in compliance with Canadian government regulations, particularly under the Study Direct Stream (SDS) program, serving as vital proof of funding for studying in Canada.

Functioning as a savings account under the Student Direct Stream (SDS), GICs traditionally yield steady returns over a specified period for international students. Those opting for SDS-enrolled courses must deposit a full year’s living costs in a Canadian bank, with GIC interest rates remaining constant unless a variable interest option is chosen. Generally, GICs are not redeemable or withdrawable.

New GIC Regulations for Students in Canada

Canada periodically updates its Immigration Rules to regulate immigration. A recent development is the **GIC Increase Canada**, impacting students globally. As per the Minister of Immigration, Canada, this increase aims to help students cope with the high rate of inflation. The new regulation mandates all students to obtain a Guaranteed Income Certificate (GIC) of $20,200 CAD, affecting those aspiring to secure a Canadian Study Visa.

Mandatory GIC Account for International Students

Indian students intending to study in Canada are legally obligated to hold a GIC account. This requirement assures the Canadian government that these students have sufficient funds to cover living expenses for a year in Canada. It expedites the processing of study permits or Canadian visas, necessitating candidates to provide proof of their financial status. The deposit amount, usually CAD 20,000 plus a CAD 200 processing fee, totals CAD 20,200 and must be made at registered and authorized Canadian embassies.

Opening a GIC Account in Canada – Steps for Indian Students

1. Choosing Authorized Bank: Select a recognized bank to open a GIC account in Canada.
2. Submitting Online Application: Complete the GIC program application online, including uploading your passport and admission letter documents.
3. Deposit Amount: Deposit CAD 10,000 along with a processing fee of CAD 150 to CAD 200.
4. Confirmation: Receive confirmation of your investment balance and a certificate of investment.

Benefits of GICs for Students

Managing finances as a student can be challenging, balancing tuition fees, textbooks, and living expenses. GICs offer safety, security, and steady returns, providing a guaranteed and predictable income. The flexibility of GIC options allows students to choose terms that suit their needs, and some institutions offer redeemable GICs for early withdrawal if required. Additionally, students may enjoy special benefits such as higher interest rates or fee exemptions.

Conclusion

Before investing, conduct thorough research and, if necessary, consult a financial consultant to make informed decisions. Whether you’re an international student building credit history or a domestic student seeking financial stability, consider Canadian GIC options tailored for students. Invest wisely in the right GIC plan, manage your funds carefully, and ensure a smooth academic journey.

Aarav Vidhyarthi

Aarav is the student success manager at Edusphere Overseas. Writes frequently about study aboard, and new updates from the education industry. Loves Messi, and plays football in his free time.
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