The word “Canada GIC” may have been a frequent companion for individuals wishing to study or move to Canada. But what precisely is it, and how can it assist you in achieving your Canadian dreams? This writing aims to demystify the Canada GIC update by fully understanding its purpose, method, and all the necessary information.
About Canada GIC?
A GIC (Guaranteed Investment Certificate) in Canada is a financial instrument to establish proof of money for immigration or study visa applications. It is essentially a fixed-term investment in which you deposit a particular amount of money with a Canadian financial institution for a set time (typically 12 months). In exchange, you will get a set interest rate on your investment.
Importance
Canadian immigration officials require international students and some temporary residents to establish their capacity to sustain themselves financially throughout their stay in Canada. The GIC offers visible proof of easily available cash for living expenditures, demonstrating your financial security and alleviating concerns about prospective dependency on public help.
Canada GICs Types
Canada GICs are classified into two types
Designated Learn GIC: Designed specifically for international students, this GIC allows you to receive a portion of the money (often CAD 2,000) upon arrival in Canada, with the remainder sent in monthly payments throughout your study year.
Regular GIC: Used for immigration purposes, this GIC gives you complete access to your money at maturity or arrival in Canada, depending on the conditions of your investment.
The Process
- Choose a participating financial institution: GIC plans are available from several Canadian banks and other organizations. To discover the best match, compare interest rates, terms, and fees.
- Purchase a GIC: Deposit the needed money into your preferred financial institution. As confirmation of investment, you will receive a GIC certificate.
- Apply for a study permit or an immigrant visa: Include your GIC certificate or letter of attestation as evidence of funds.
- Access your funds: Once accepted, you can access your funds following the rules of your chosen GIC type.
The Benefits
- Peace of mind: Provides certainty that you will be able to sustain yourself financially in Canada.
- Easier visa application: Makes the immigration process easier by demonstrating financial eligibility.
- Earning potential: Earns interest on your invested money.
- Government-approved: Recognized as valid proof of cash by Canadian immigration officials.
Consider the following
- Early withdrawal penalties: Withdrawing money before maturity may result in fees and interest loss.
- Currency fluctuations: Consider probable exchange rate changes while investing in a foreign currency.
- Look around: Before making a selection, compare several GIC possibilities.
Canada GIC Update 2024
Many students from other nations visit Canada each year to further their education. Students can apply for studies in Canada using IRCC’s Student Direct Stream. One of the conditions for applying through the Student Permit is a $10,000 GIC.
Are GIC rates going up in Canada?
According to the Canada GIC update news, IRCC announced a rise in GIC requirements for overseas students on December 7, 2023. This implies that beginning January 1, 2024, students applying for studies through the Student Direct Stream must have a minimum of $20,635 in addition to their first year’s travel and tuition expenditures.
