Students from all around the world go to Canada to fulfil their dreams. During their stay in Canada, they need financial support to realise their dreams. They need money to pay rent and utility services. They need cash to go shopping to buy stuff for themselves.
Considering all the problems that an International student faces, Canadian government recommends to buy Guaranteed Investment Certificate also known as GIC. In many of Canadian study programs, it is necessary to get GIC. For example it is mandatory to buy GIC if a student wants to take admission under Student Partnership program (also known as SPP). It also acts as an assurance to Canadian government that the student who wants to study there has enough financial capability to stay there and study.
A Guaranteed Investment Certificate is an investment certificate that provides regular financial return to international students. In other words, before going to Canada for studies, the student buys Guaranteed Investment Certificate, to insure his day to day expenditure. The student gets regular amount every month out of his Guaranteed Investment Certificate.
As per the specifications of Citizenship and Immigration Canada (CIC), students under SPP program need to buy GIC certificate worth 10,000 CAD from approved Canadian banks or trust companies. This investment certificate is very safe and is guaranteed by Canadian Deposit Insurance Corporation (CDIC). Moreover, students also get interest on GIC which is pre-calculated for the specific duration by the financial institution from which they purchase these certificates.
Students have to invest 10,000 CAD in GIC along with processing fees (approx. 200 CAD), both of these amounts may change in future.
Many Canadian banks provide these certificates. Scotiabank is popular among students due to its availability across Canada. It has approximately 1000 branches in Canada. Indian students also buy these certificates from Indian Banks such as ICICI bank, SBI, HDFC etc.
On arrival, the student has to open a deposit accounts with the bank. After that, he gets 2000 CAD as a first instalment. The Canadian government provides this big amount up-front so that the student not face any problem while finding accommodation in Canada. After the first instalment, the student gets approximately 660 CAD for the rest of 11 the months. This amount may change as per interest rate.
One must keep it in mind that it is not tuition fees of the education institution. The tuition fee of university or college is separate and it is generally paid before GIC.
Guaranteed Investment Certificate is a very beneficial initiative taken by the Canadian government. International Students must take advantage of this certificate even in those study programs in which it is not mandatory. Sometimes students do not get part time job and to meet ends, this investment certificate comes handy.
The team of MyForeignStudy works very hard to provide accurate information. For more in depth knowledge about the process and to study abroad please consult our experienced consultants in person. Or you can contact through this website.