If you’re an international student who set up a GIC Canada account for your studies, you might wonder what happens to your funds after you graduate. A Guaranteed Investment Certificate (GIC) is a financial requirement for many students studying in Canada. It provides a reliable monthly income during your first year, helping you cover essential expenses. But after graduation, when your monthly disbursements are no longer required, what are your options with any remaining funds?
This blog explores what you can do with your GIC after graduation, ensuring you make the most of your finances as you transition into post-graduate life.
1. Understanding Your GIC Balance After Graduation
Typically, a GIC account is set up for one year to distribute your funds monthly, helping you manage living expenses during your first year. After this period, the account often becomes accessible for full withdrawal. If you still have money left in the GIC after receiving the monthly disbursements throughout the year, you’re usually free to access this remaining balance.
It’s essential to review your bank’s terms and conditions on closing or withdrawing from the GIC account. Each bank has specific policies regarding GIC disbursement and closure, so understanding these details will help you plan your next steps.
2. Options for Your GIC Funds After Graduation
Once you’ve completed your studies, there are several choices for handling your remaining GIC funds:
Withdraw and Use for Living Expenses: Many graduates choose to withdraw their GIC balance to cover immediate living expenses, especially if they are staying in Canada temporarily to seek employment or while they await their Post-Graduation Work Permit (PGWP). This provides essential financial support during the transition period from student life to working life.
Transfer Funds to a Canadian Bank Account: If you’re planning to continue living in Canada for work or further studies, transferring your remaining GIC funds to a regular savings or checking account might be beneficial. This gives you easier access to your money for daily expenses, savings, or future investments.
Convert to Another Investment: Some students consider keeping their funds in a Canadian bank as an investment option, which can be especially helpful if you’re thinking about staying long-term. Speak to a bank advisor to explore investment accounts, such as a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP), which could help you grow your money.
3. Staying in Canada After Graduation
If you’re choosing to study in Canada as a pathway to a long-term career, you may want to consider using your GIC funds as part of your financial plan for staying in Canada after graduation. Canada’s post-graduation work options, such as the PGWP, provide a great opportunity to gain Canadian work experience and potentially qualify for permanent residency later. Having leftover GIC funds can help support you during this transition, covering rent, groceries, and other basic expenses while you look for a job.
Canada’s strong job market, welcoming environment, and favorable immigration policies make it a highly attractive choice for international graduates. By strategically managing your remaining GIC funds, you can more comfortably transition into this new chapter of life.
4. Getting Support with Your Post-Graduation Plans
Navigating life after graduation in a new country can be challenging, especially when it comes to managing finances. Working with an overseas education consultancy can help simplify the process. These consultants can guide you through everything from closing your GIC account to understanding visa requirements, such as the PGWP. They can also offer valuable career advice, networking tips, and other resources to help you establish yourself in Canada.
Final Thoughts
Deciding what to do with your GIC funds after graduation can be straightforward if you’re clear on your goals. Whether you choose to withdraw, invest, or transfer your funds, planning ahead will ensure that you make the most of your resources. Staying informed on your options and reaching out to advisors or consultants can make your transition smoother as you start your career journey in Canada.
Your GIC funds can play an essential role in supporting your goals after graduation, making it easier to take that next step in your Canadian experience.
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