The Student Direct Stream (SDC) program allows international students to expedite their study permit applications if eligible.
One of the key requirements of the program is that you must have a $10,000 deposit in a Guaranteed Investment Certificate (GIC) at a Canadian bank or other financial institution accepted by the Canadian government.
HSBC Canada’s International Student GIC Program can help you satisfy the proof of funds application requirements for the SDC.
Read on to learn how it works.
Table of Contents Show
What is the Student Direct Stream Program?
Applications for a study permit under the Student Direct Stream may be processed within 20 calendar days. This is much faster than the average time it takes to process student permits through the regular stream, which can take months.
SDS is only open to residents of Brazil, China, Columbia, Cost Rica, Morocco, India, Pakistan, Philippines, Senegal, Vietnam, Antigua and Barbuda, Morocco, Saint Vincent and the Grenadines, and Trinidad and Tobago.
There are many other requirements you need to meet to be eligible, and you can find them on the Canadian government’s website.
One of the keys is you must show confirmation that you have purchased a $10,000 GIC and hold it in a student bank account or investment account you can’t access until after arriving in Canada.
How the HSBC International Student GIC Program Works
HSBC Canada offers a GIC that meets the criteria for applications through the SDC.
You can open an account while abroad if you reside in a country in which there’s a local HSBC bank that participates in the International Student Program.
You can apply online or call the HSBC Hotline for your home country, such as 1 800 103 4722 or 1 800 266 3456 for India, and +84 28 3724 7257 for Vietnam.
You can apply online. You will need to provide these documents:
- Passport showing your bio-data page and signature page
- Proof of enrollment at an eligible Canadian college or university
- Proof of address, such as a utility bill, bank statement, or driver’s license
A chequing account is opened in your name, and you will need to fund it with CAD $10,300. Of this amount, $10,000 is later deposited in a GIC while the remaining $300 goes to fees ($200 administration fee and $100 for miscellaneous fees).
After funds have been received, HSBC will send you a confirmation letter you can attach to your student visa application.
Here are more details about HSBC chequing accounts in Canada.
After Arriving in Canada
After arriving in Canada, you will need to visit the HSBC Bank Canada branch indicated in your confirmation letter.
Bring along your passport, study permit, and confirmation letter to verify your identity.
Of the $10,000, $8,000 is deposited in a 60-day non-redeemable GIC, which automatically renews at maturity. $2,000 is left in your chequing account, and you can access these funds anytime.
Every 60 days, a $1,333 principal payment is deducted from the GIC and deposited in your chequing account.
These are six payments in total during the first year (12-month period).
Interest earned on the GIC during each 60-day term is also paid out.
Here’s an example of what the $8,000 disbursem*nt could look like:
| Payments | Principal paid to chequing account |
| Payment 1 | $1,333 |
| Payment 2 | $1,333 |
| Payment 3 | $1,333 |
| Payment 4 | $1,333 |
| Payment 5 | $1,333 |
| Payment 6 | $1,333 |
| Total | $8,000 |
This sample payment schedule does not include interest earned by the GIC.
Related: Here is HSBC’s high-interest rate account.
What If Your Student Visa Application is Denied?
If your application for a study permit is denied, you can request a refund of your deposit.
You will need to provide the following documents to HSBC:
- Letter showing your application was denied by Immigration, Refugees, and Citizenship Canada
- A completed Withdrawal Application Form
Once confirmed, HSBC closes your account and refunds the $10,000.
The $200 administration fee is not refunded; however, you will get unused portions of the $100 designated for miscellaneous fees.
To learn more about the HSBC International Student GIC Program, visit their website here.
FAQs
Is HSBC a good bank?
HSBC is one of the largest and best banks in the world. Its Canadian operation, HSBC Bank Canada, was a recent winner of the “Best International Onboarding Experience in Canada” award by Cosmopolitan The Daily.
Can international students buy GICs at HSBC?
International Students can buy GICs through HSBC to meet the proof of funds requirement of the Student Direct Stream program. When in Canada, students can also purchase GICs through HSBC for investment purposes.
Does HSBC offer a no-monthly fee student account?
Yes, you can open a no monthly fee student chequing account with HSBC if you meet the eligibility requirements. It also has promotional offers and perks for newcomers.
What is the GIC interest rate for the HSBC International Student GIC Program?
The interest rate earned by your GIC will be provided when opening the GIC account.
Related:
- HSBC New Account Offers for 2024
- Newcomer To Canada Benefits
