GIC Increase in Canada: $10,000 to $20,635, Pros & Cons Explained

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Canadian Government Student Direct Stream Program - GIC Increase

GIC Increase in Canada

News: Canada’s Student Direct Stream Program, overseen by the government, facilitates international students’ pursuit of education in the country. To obtain a visa, students must possess a Guaranteed Income Certificate (GIC), offered by the Canadian Government.

GIC Increase in Canada

The GIC serves to financially assist students during their stay in Canada, covering essential expenses or enabling withdrawals. Notably, on December 8, 2023, the Canadian Immigration Minister revealed an elevation in the GIC sum, raising it from $10,000 CAD to $20,635 CAD.

Implications of the GIC Increase

The adjustment in the GIC regulation will affect students intending to commence their studies in Canada for the January 2024 session. To grasp the ramifications of this rise, referencing the Canada Student GIC (GIC Increase in Canada) Rate Increase Table becomes crucial.

Furthermore, it’s advisable to evaluate the advantages and disadvantages of the Guaranteed Income Certificate (GIC) to gauge its potential benefits or drawbacks for students in Canada.

GIC Increase in Canada For individuals planning relocation to Canada next year or in future admissions, utilizing the Student GIC Calculator 2024 is recommended to ascertain the payable amount in their respective currencies.

Pros of the Guaranteed Income Certificate (GIC)

  1. Financial Support: The GIC provides students with the ability to withdraw funds for housing and transportation expenses upon their arrival in Canada.
  2. Reduced Financial Burden: By receiving monthly payments for their living expenses, students can lessen the financial reliance on their parents.
  3. Security: The GIC acts as a safety net, ensuring that students do not encounter any unexpected hardships during their time in Canada.

Cons of the Guaranteed Income Certificate (GIC)

  1. Financial Challenge: Some students find it difficult to afford such a substantial investment for their education abroad.
  2. Different Educational Systems: Many countries offer quality education without the requirement of a GIC or similar financial investment.
  3. Payment Structure: The 12-month payment method may not be viewed favorably by some students.

Requirements for Opening a Student GIC Account

GIC Increase in Canada

  1. Overseas Branch: The bank must have an overseas branch and be registered with the Canadian Government.
  2. Verification: The bank should be liable for verification during the payout of the GIC once students arrive in Canada.
  3. Currency Compatibility: It is crucial to have an appropriate GIC amount in the student’s currency for it to be deposited into the bank.
  4. Withdrawal Process: The GIC Canada Amount can be withdrawn from the nearest branch once it has been deposited.

Key Points Regarding the GIC Canada Increase

  • The GIC Canada Amount has been raised to $20,635 CAD.
  • Previously, the Guaranteed Income Certificate cost was $10,000 CAD.
  • The GIC Canada Increase Rule will be implemented starting from January 1, 2024.
  • According to this rule, all international students must secure an investment of $20,635 CAD.

To recap, the GIC Increase in Canada announcement made on December 8 signifies a surge in the GIC amount from $10,000 to $20,635 CAD, effective from January 1, 2024. Upon arriving in Canada, students can withdraw a lump sum from the GIC, while the remaining balance will be disbursed through 12 monthly installments.

FAQs

Q: What is the new GIC amount for international students studying in Canada?

A: The new GIC amount is $20,635 CAD.

Q: When will the GIC Canada Increase Rule be implemented?

A: The GIC Canada Increase Rule will be implemented starting from January 1, 2024.

Q: Can students withdraw the entire GIC amount upon their arrival in Canada?

A: Yes, students can withdraw a lump sum amount from the GIC upon their arrival in Canada.

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