Are you an international student planning to study in Canada? If so, you should know that as part of your study permit application, you鈥檒l have to prove to immigration officials you have enough money to support yourself during your studies. This requirement is often known as 鈥�proof of financial support鈥� or 鈥減roof of funds.鈥�
Even if you plan to work part-time while studying, your salary usually won鈥檛 be enough to cover both tuition and living costs. That鈥檚 why it鈥檚 important to have access to enough funds before you start your studies abroad. One of the best ways to strengthen your study permit application and prove you meet proof of funds requirements is with a GIC.
Below, we鈥檒l explain what a GIC is and how it can boost your Canadian study abroad application.
Curious about part-time job ideas for international students? Here鈥檚 our top-ten list.
What is a GIC?
A is a type of secured investment, similar to a in the United States. GICs are most commonly offered by Canadian banks and financial institutions. If you鈥檙e an international student, this is a popular and secure way to show proof of financial support.
GICs offer you a fixed interest rate for money that鈥檚 invested over a specific length of time. The shortest time you鈥檒l see is usually around six months, but most last one to three years. There are even some GICs that have a five-year term. You won鈥檛 be able to withdraw or use the money during that time. In exchange for leaving your money in a GIC, the bank will ensure that at the end of the term you choose, you鈥檒l get the amount you deposited back (which is why it鈥檚 called a 鈥淕uaranteed Investment鈥�).
Want to know how much rent, utilities, groceries, and more might cost while studying in Canada? Find out in our updated Canadian cost of living blog.
GIC Benefits
When buying a GIC, you鈥檒l on the amount you deposited. The rate of interest you鈥檒l get is often set, or fixed, when you deposit your money. That way, even if the market goes down, and interest rates drop everywhere else, you鈥檒l still receive the interest you were promised.
Often, the longer you keep your money in a GIC, the better the interest rate will be. That means if you won鈥檛 need the money for a while, consider a longer-term GIC to maximize your gains!
GIC interest rates are usually better than what you鈥檇 get in a savings account. Also, there鈥檚 no risk of losing your initial investment the way you might if you invested in stocks or mutual funds. So in many ways, GICs are a good approach for students new to the Canadian banking system.
Preparing to study abroad? These five money-saving tips can help you maximize your budget.
What Do I Need to Know When Buying a GIC?
Check Out Different Options
Before you commit to one GIC, it鈥檚 smart to look around. See what different interest rates are offered and what the time limits or terms look like. Sometimes, there are special GIC opportunities for international students which offer different timeframes and conditions. You can also check with your college or university to see if they have any GIC recommendations.
Ask Questions
While the Government of Canada actually , we get it鈥攂anking terms can be confusing. Never be afraid to ask questions to the financial representative you鈥檙e talking to. They鈥檙e there to help you.
Also, remember you鈥檝e got .
Also, remember you鈥檝e got .
The information you have a right to includes:
- The term of the GIC (one year, three years, etc.)
- How and when the interest is to be paid (yearly, or at the end of the term)
- If the annual interest rate is fixed, what it is
- If the interest rate is variable (changes), how it鈥檚 calculated, which rate they use to calculate your rate, the actual interest rate at your time of purchase, and how you can learn what the interest rate is during your investment
- Any charges that apply
- If and how you can cash in your GIC before the investment end date, if there are any penalties for doing so, and how that impacts the interest you get
If any info is missing, you have the right to ask for and get it from the financial institution.
Prepare your Application
While a GIC is not required for a study permit application, it is one of the strongest proof of funds you can provide. Please check the Government of Canada鈥檚 website for the .
Once you purchase your GIC, you鈥檒l need one of the following to show as proof:
- A letter of attestation
- A GIC certificate
- An Investment Directions Confirmation
- An Investment Balance Confirmation
Can 星空影视Help Me Get a GIC?
While we鈥檙e not a financial institution ourselves, we鈥檝e partnered with two of Canada’s largest and most trusted banks: the Royal Bank of Canada (RBC) and TD Bank, to make it easier for international students like you to provide proof of financial support.
Here鈥檚 how you can set up a GIC quickly and easily:
- Once you have a letter of acceptance (LOA) from an eligible Canadian college or university, you can apply for a GIC with RBC or TD through ApplyBoard.
- Once you鈥檙e approved, complete and submit your application, then set up your investment account.
- After your account is created, deposit funds in your GIC account.
- When you submit your study permit application, include your GIC certificate in your study permit application to make it even stronger.
- Once you arrive in Canada, visit any RBC or TD branch to set up your GIC payments.
Ready to apply for an RBC or TD GIC with ApplyBoard? Start your application now!
We hope that this post has helped you understand what GICs are, how to get one, and how they can strengthen your study permit application.
Ready to find study abroad programs in Canada? Use our free 星空影视platform to find the right fit for you!
