In the pursuit of higher education in Canada, international students often find themselves navigating the requirements for a student visa, including the necessity of opening a Guaranteed Investment Certificate (GIC). This financial instrument serves as proof of ample funds to cover living expenses during their academic journey. In this comprehensive guide, we’ll explore the best bank for Student GIC in Canada in 2024, comparing their features and recommending the best choices.
Table of Contents
Understanding Student GIC Programs in Canada
Student GIC programs cater specifically to international students applying for a study permit in Canada. These programs entail depositing a predetermined amount into a GIC account, which is then released in installments to cover living expenses during their stay. After program completion, students can access the remaining balance.
To be eligible for a study permit through the SDS program, a Guaranteed Investment Certificate (GIC) valued at CAD 10,000, or the amount stipulated by Immigration, Refugees & Citizenship Canada (IRCC), is required.
Additional benefits, including a free student account.
GIC amount: $10,000 CAD to $20,000 CAD.
2. Simplii Financial Student GIC Program
Open to international students from select countries.
Competitive interest rates.
No monthly fees.
GIC amount: $10,000 CAD.
3. RBC Student GIC Program
Established reputation.
Additional banking benefits for students.
Higher minimum balance requirement for the student bank account.
Not available for students of all countries.
A 250 CAD fee for opening Student GIC.
4. Scotiabank Student GIC Program
Accepts students from multiple countries.
Competitive interest rates.
Wide range of banking services.
A 200 CAD fee for opening Student GIC.
5. ICICI Bank Canada Student GIC Program
Available for students from eligible countries.
Competitive interest rates.
Trusted international banking brand.
A 150 CAD fee for opening Student GIC.
6. SBI Canada Student GIC Program
Open to students from select countries.
Competitive interest rates.
Established international banking presence.
A 150 CAD fee for opening Student GIC.
Comparative Analysis
Bank
Eligible Countries
Interest Rates
Additional Benefits
Fees
CIBC
Multiple
Competitive
Free student account + Sign up bonus
No fee
Simplii Financial
Multiple
Competitive
Free student account + Sign up bonus
No fee
RBC
Selected
Competitive
Free student account
250 CAD
Scotiabank
Multiple
Competitive
Free student account
200 CAD
ICICI Bank Canada
Selected
Competitive
N/A
150 CAD
SBI Canada
India only
Competitive
N/A
150 CAD
Best Bank for Student GIC in Canada: Recommendations
After analyzing the top banks for GIC in Canada, the top three recommended Student GIC programs are:
CIBC Student GIC:Competitive interest rates, a free student account, a credit card, and a flexible withdrawal process make CIBC a comprehensive choice.
Simplii Financial Student GIC: A strong option for students seeking online banking with competitive interest rates and no monthly fees.
Scotia Bank GIC: With a well-established reputation and additional benefits like a free student account, Scotiabank is a reliable choice.
Step by Step process to apply for CIBC Student GIC 2024
Student GIC in Canada Explained
How to Choose Best Bank for Student GIC in Canada?
To make an informed decision, consider factors such as interest rates, additional banking services, and branch availability. Visit the official websites of the banks to learn more about their Student GIC programs and application processes.
Earn Upto CAD 50 With CIBC GIC And Simplii Financial GIC
To get a sign-up bonus, enter the email address [email protected]in the Referral Details section while filling the GIC application form. The sign-up bonus will be automatically deposited into your bank account.
Best Bank for Student GIC in Canada in 2024: Conclusion
Choosing the best bank for Student GIC in Canada in 2024 is a crucial step for international students preparing for their educational journey. Consider the features, pros, and cons of each program to make an informed decision aligned with your financial needs. Keep in mind that the information provided is subject to change, and it’s advisable to visit the official websites of the banks for the most up-to-date details on their Student GIC programs.
Based on our analysis, the CIBC Student GIC Program is the best option with the best GIC rates in Canada for international students applying for a study permit through the Student Direct Stream.
From January 1, 2024, the new GIC amount for international students is CAD 20,635 (INR 12,71,619 Approx). Earlier, the required GIC amount for Canada was CAD 10,000 (INR 616,244). Raising living expenses in the country and the increasing inflation rate are the reasons behind this decision.
What is the highest paying GIC rate in Canada? As of February 2024, the highest paying GIC rate in Canada is 5.50% interest on a 1-year term at EQ Bank. For GICs with a 5-year term, Hubert Financial and Ideal Savings currently offer the highest rate at 4.75%.
TORONTO, April 2, 2024 /CNW/ - Scotiabank has been named the 2024 Best Bank in Canada by Global Finance magazine. The Best Bank Awards recognize financial institutions that offer the broadest range of services, long-term reliability, and technological innovation.
If you are low on time and need to immediately open a GIC account, then go for CIBC or Simplii. They offer a lot of student-friendly features. BMO can also be considered. If you don't have any time constraints and would like to put in a huge amount in your GIC account, go for Scotiabank.
With the first rate drop expected as soon as the second quarter of 2024, GIC rates are likely to remain stable in the short term, but may start to decrease following the Bank of Canada's adjustments.
As of 30 April 2024, international students in Canada can no longer work more than 20 hours per week off campus while studying. 8 in 10 international students do currently work more than 20 hours per week according to Canadian government research.
Guaranteed investment certificates are sold by Canadian banks, credit unions and other financial institutions and can be insured by the Canadian Deposit Insurance Corporation (CDIC). People in the U.S. may be able to buy GICs if they have an account through a Canadian bank.
How much GIC is required for Canada? Students need a GIC worth one year-long living expenses. It ranges from CAD 10,000 to 50,000 (about six lakhs to 30 lakhs INR).
If you are low on time and need to immediately open a GIC account, then go for CIBC or Simplii. They offer a lot of student-friendly features. BMO can also be considered. If you don't have any time constraints and would like to put in a huge amount in your GIC account, go for Scotiabank.
Cons: Low return – GICs are low-risk investments, which means they offer lower returns as opposed to stocks or mutual funds. Limited liquidity – Other than cashable GICs, your money is locked in for a set timeframe, which means you're unable to access your funds should you need them.
Introduction: My name is Allyn Kozey, I am a outstanding, colorful, adventurous, encouraging, zealous, tender, helpful person who loves writing and wants to share my knowledge and understanding with you.
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