GIC for International Students in Canada

International students pursuing their education in Canada often encounter various financial requirements during their application process. One essential aspect is having a Guaranteed Investment Certificate (GIC) of at least $10,000 CAD, mandated by the Government of Canada's Student Direct Stream Program. This article explores the significance of obtaining a GIC for international students and how it facilitates their educational journey in Canada.

What is the Guaranteed Investment Certificate (GIC)?

A Guaranteed Investment Certificate (GIC) is a secure financial instrument offered through the RBC International Student GIC Program. It serves as both an investment and proof of financial stability to the Canadian government. GIC funds are protected by the Canada Deposit Insurance Corporation (CDIC). It accrues interest at a fixed rate over a predetermined period.

Purpose of Guaranteed Investment Certificate (GIC)

The Guaranteed Investment Certificate (GIC) assists international students in covering their educational and living expenses in Canada. It demonstrates to the Canadian government that students have sufficient funds to support themselves during their studies.

The Process of Obtaining a GIC

Step 1: Pre-arrival Preparation

Applicants should open an RBC Investment Account and purchase the GIC before departing for Canada. A wire transfer of $10,250 CAD is required to secure the GIC. The GIC confirmation is necessary to support the Student Direct Stream Program application with the Canadian government.

Step 2: Setting Up GIC Redemption Payments

Upon arriving in Canada, students are advised to visit an RBC Royal Bank branch to establish GIC redemption payments.

Monthly Disbursements

Throughout the GIC's term, 1/12th of the remaining principal amount (plus interest) is transferred to the student's designated personal deposit account.

Completion of GIC Term

After 12 months, the full GIC amount (plus accrued interest) will have been deposited into the student's personal deposit account.

Conclusion

Obtaining a Guaranteed Investment Certificate (GIC) is a crucial step for international students planning to study in Canada. It not only fulfills the financial requirements of the Student Direct Stream Program but also ensures students have a secure and guaranteed source of funds for their educational and living expenses. This financial instrument offers peace of mind and financial stability throughout their academic journey in Canada.