A Guaranteed Investment Certificate (GIC) for international students is a financial product that serves as proof of financial support for those applying for a Canadian study permit. It is a requirement set by the Canadian government to ensure that international students have sufficient funds to cover their living expenses while studying in Canada.
Key features of the GIC for international students include:
- Purpose:
- The primary purpose of the GIC is to demonstrate to Canadian immigration authorities that the student has access to a specific amount of funds to cover living expenses during the initial period of their studies in Canada.
- Minimum Deposit:
- The GIC program typically requires international students to deposit a minimum specified amount into the GIC account. This amount is predetermined and serves as a financial guarantee. Prior to January 1, 2024 the GIC amount used to be $10,000 but it has been revised to $20,635 since then.
- Term and Installments:
- The GIC amount is often held in an investment account for a specific term, such as 12 months. The funds are released to the student in installments to cover living expenses over the duration of their study program.
- Authorized Financial Institutions:
- The GIC program is offered by specific Canadian financial institutions that have been authorized by the Canadian government. These institutions collaborate with Canadian educational institutions to facilitate the GIC process.
- Proof of Funds:
- The GIC, along with other financial documents, is submitted as proof of funds when applying for a Canadian study permit. It assures the Canadian immigration authorities that the student has access to the necessary financial resources.
- Financial Institutions Offering GICs:
- Several Canadian banks, such as Scotiabank, ICICI Bank, SBI Canada Bank, and others, offer GIC programs for international students. Each financial institution may have its own terms and conditions.
- Interest and Fees:
- The GIC typically earns a modest amount of interest during the investment term. However, it’s important to note that some fees may be associated with the GIC program, so students should be aware of the terms and conditions.
It’s crucial for international students to carefully review the specific requirements and conditions of the GIC program offered by the authorized financial institution of their choice. This ensures compliance with the Canadian immigration regulations and a smooth application process for the study permit.
As regulations and programs may change, students should refer to the official website of Immigration, Refugees and Citizenship Canada (IRCC) and the specific financial institution for the most up-to-date information on GICs for international students.
