For international students with dreams of studying in Canada, navigating the application process can feel overwhelming. One requirement that often sparks confusion is the Guaranteed Investment Certificate (GIC). This blog post, brought to you by MSM Unify, aims to demystify the GIC Canada and answer the burning question: how much money do international students receive monthly from a GIC?
What is a GIC?
A GIC, short for Guaranteed Investment Certificate, is a financial product offered by Canadian banks. It essentially functions as a locked-in investment for a predetermined period, typically one year. International students applying for a study permit often need to show proof of a GIC to demonstrate they have sufficient funds to support themselves while studying in Canada.
Why do international students need a GIC?
The GIC requirement serves two purposes:
Financial security: It assures the Canadian government that international students have access to funds to cover living expenses for their first year of study. This helps reduce the strain on social services and demonstrates a student's ability to financially support themselves.
Streamlined application process: For students applying through the Student Direct Stream (SDS), having a GIC can expedite the study permit application process.
GIC minimum amounts and disbursement
The minimum GIC amount required for a study permit in Canada varies depending on the province you'll be studying in. Here's a breakdown:
For all provinces except Quebec: The minimum GIC amount is currently CAD 20,635.
For Quebec: Students need to meet the specific minimum financial requirements set by the province of Quebec. You can find this information on the official Quebec government website.
Important to note: The GIC amount represents the total investment, not the monthly amount you receive. Let's delve deeper into how you access your funds.
How do International students receive money from their GIC?
Most Canadian financial institutions offering GICs for international students follow a similar disbursement structure:
Initial release: Upon arrival in Canada and opening a student bank account, you'll typically receive an initial disbursement of around CAD 2,000 from your GIC. This amount is intended to help cover immediate living expenses upon arrival.
Monthly payments: The remaining balance of your GIC, usually around CAD 18,635 (after the initial release), will be divided into equal installments and deposited into your student bank account monthly for the duration of your GIC term (typically 12 months).
Here's an example to illustrate:
Imagine you invest the minimum required GIC amount of CAD 20,635. After receiving the initial release of CAD 2,000, the remaining balance for monthly disbursements would be CAD 18,635.
Dividing this amount by 12 months (the typical GIC term) would result in a monthly payout of approximately CAD 1,553.
Factors affecting your monthly GIC amount
It's important to remember that the exact monthly amount you receive can vary depending on a few factors:
GIC interest rate: The interest rate offered on your GIC will slightly increase the total amount you receive upon maturity. However, current GIC interest rates in Canada are generally low, so the impact on your monthly payout might be minimal.
Financial institution: Different banks may offer slightly different GIC terms and interest rates. It's crucial to compare options and choose the one that aligns best with your financial needs.
The role of overseas education consultants
Navigating the complexities of studying abroad can be daunting. This is where overseas education consultants like MSM Unify come in. We offer a comprehensive range of services to support international students throughout the application process, including:
Understanding GIC requirements: We can clarify the specific GIC requirements for your chosen province in Canada and guide you in selecting a suitable GIC product.
Financial planning: We can help you assess your financial needs and plan your budget effectively to make the most of your GIC funds.
Streamlining your application: We can assist you in gathering the necessary documents and meeting all GIC requirements to ensure a smooth application process.
By partnering with an experienced overseas education consultant, you can approach your study abroad journey with confidence, knowing you have expert guidance on your side.
Conclusion
Understanding the GIC requirement and how you access your funds is a crucial step for international students aiming to study in Canada. While the GIC doesn't necessarily provide a substantial monthly income, it demonstrates financial stability and helps you manage your living expenses during your first year.
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