When you plan to study in Canada as an international student, you must show that you are financially capable of supporting yourself while you are in Canada. Along with the cost of tuition, you must also demonstrate that you have assets of at least $22,895 Canadian dollars before arriving in Canada. One way to meet this requirement is to purchase a Guaranteed Investment Certificate (GIC) from an approved Canadian financial institution
What is Guaranteed Investment Certificate (GIC)
Guaranteed Investment Certificates are investment accounts that have a guaranteed rate of interest over a predetermined period. GIC holders are required to leave their funds in the account for a specified period of time before they can withdraw the money. During that time, there will be a guaranteed interest rate earned. It serves as a proof that you have sufficient funds to cover your living expenses during the course of your studies in Canada.
Why is GIC needed?
GIC is required for the following purposes
The money serves as a surety or guarantee to the Canadian government that you will be able to pay your living expenses each month in Canada for a year.
Application and processing of Canadian visas/study permits are made easier with it. Students must submit proof of sufficient funds to obtain a Canadian study permit. For a Canadian study permit or visa, a GIC of $22,895 Canadian dollars from an approved Canadian bank is required.
