Unlocking the Essentials of GIC for Canadian Studies: A guide for Indian students heading to Canada.
As documents go, the Guaranteed Investment Certificate (GIC) is among the most important ones for students from India to move to Canada. This is a prerequisite to obtaining a study permit for those who wish to gain a Canadian education. Students are expected to deposit a sum in their bank accounts to cover at least a year’s worth of expenses. Banks cover this amount by issuing a GIC.
According to the Indian Express, on December 8th “Mark Miller, Minister of Immigration, Refugees, and Citizenship, said beginning January 1, 2024, the minimum cost of living financial requirement for students will be raised from the current 10,000 Canadian dollars to 20,635 Canadian dollars. He said this is being done to ensure that students don’t face any financial hardship in the country”.
Having a GIC account allows students to access the funds upon arrival in Canada, providing them with financial support as they transition into a new country. SBI, Scotiabank, and ICICI bank are among the big entities that offer convenient and reliable options for Indian students to open GIC accounts and fulfill the requirements for studying in Canada.
What is a GIC in Canada?
A GIC, or Guaranteed Investment Certificate, in Canada, is a secure investment product offered by financial institutions. The purpose of a GIC is to provide a guaranteed return on the invested amount over a fixed period of time.
International students studying in Canada are required to obtain a GIC as part of their financial support for their studies. This is a significant requirement for their visa application, as it demonstrates that they have access to a minimum amount of funds to cover their living expenses while studying in Canada.
To obtain a GIC, international students must open a GIC account with a participating Canadian financial institution and deposit a specified amount of money, usually around $10,000 CAD, which may go up to $20,635 CAD from January.
Benefits of opening a GIC account for students
Opening a GIC account for international students offers several benefits.
Save money: It helps them save money for their tuition and living expenses while studying abroad. GIC accounts provide a guaranteed return on investment, ensuring that students have a secure source of funding.
Credit history: having a GIC account can help students establish a credit history in their host country, which may be useful for future financial endeavors.
The process of opening a GIC account is relatively simple. International students typically need to apply for a study permit and provide proof of acceptance to a designated learning institution in order to be eligible for a GIC account. They then need to deposit a specified amount of funds into the account, which is held for a fixed period of time.
Documents required to open GIC Account in Canada
To open a GIC Account in Canada as an international student, you will need to provide the following documents: a passport copy, admission letter from the Canadian university or a designated learning institution, and proof of funds for living expenses. Additionally, there may be processing fees associated with opening the GIC account.
What is the recommended GIC amount for Canada?
The minimum recommended GIC amount for international students studying in Canada has been $10,000 CAD which may soon be doubled
The process for depositing the GIC amount for a Canada student visa involves first selecting a participating Canadian financial institution and opening a student GIC account with them. Once the account is opened, the student must deposit the required GIC amount, and then receive a certificate confirming the investment.
There are several financial institutions that are registered and recognized by the Canadian embassy for depositing the GIC amount, including Scotiabank, ICICI Bank, SBI Canada Bank, and HSBC Bank Canada.
Designated GIC banks in India
The designated GIC (Guaranteed Investment Certificate) banks in India that are approved to offer GIC for Canada are State Bank of India (SBI), Scotiabank, and ICICI Bank. These banks are registered with the Canadian government to provide GICs for students applying for a study permit under the Student Direct Stream (SDS) program.
To open a GIC for Canada in SBI, Scotiabank, or ICICI Bank, the applicant must meet the eligibility criteria set by the respective bank, which typically includes being a student visa holder for Canada and having the necessary funds to fulfill the GIC requirements. The process for obtaining a GIC involves submitting the required documents and funds to the bank, after which the bank issues the GIC certificate.
How to open GIC Account?
A Guaranteed Investment Certificate (GIC) is a low-risk savings option that offers a guaranteed return on your investment. Opening a GIC account can be a smart way to save and grow your money over a fixed period of time.
1. The Scotiabank
Upon arrival in Canada, to activate a Scotiabank GIC account, you will need to visit your nearest Scotiabank branch. You will need to bring your passport, a study permit, and any other immigration documents. You will also need your offer letter from a designated learning institution. At the branch, you will fill out the necessary forms and provide the required documents to open your GIC account.
Registration process: The bank charges $200 CAD to process the online registration. As of today, the student will need to deposit $10,200 as the GIC amount. After successful registration and GIC account login creation, students receive Scotiabank Investment account number and wire transfer details. Once the GIC account is activated an “Investment Directions Confirmation’ letter is furnished which has to be then submitted by the students to the embassy at the time of the VISA process.
Students are allowed to withdraw fixed amounts every month to manage their finances and support themselves. At the end of the stipulated time frame, students can encash the GIC amount if they choose to discontinue their stay in Canada.
Upon their arrival in Canada, students must submit the investment directions confirmation letter, a valid foreign passport, the letter of enrollment from their respective universities, the study permit, and welcome letter to the nearest Scotiabank branch.
The Scotiabank GIC refund policy allows for a full refund if your study permit application is denied. To request a refund, you will need to provide a copy of the study permit denial letter, a letter from the designated learning institution confirming the denial, and a written refund request. These documents can be submitted online through the Scotiabank website.
After submitting the required information, the refund process typically may take around four weeks at most. Once approved, the refund will be issued in the same manner in which the original GIC amount was funded.
2. SBI Canada
To open a GIC account with SBI Canada, start by visiting their website and completing the registration process. Upon completing the registration on the online portal, you will need to upload necessary documents such as a valid passport, study permit, and proof of funds. Review the application process carefully and ensure all required information is provided accurately.
The registration process requires uploading scanned copies of the following documents:
A copy of the passport ID page.
A copy of the college/university offer letter.
The investment account established by SBI for depositing the Canada GIC amount is termed a super saver/chequing account. Subsequent steps in the process mirror those of the Scotiabank registration process.
Application Review Process: An additional step in the SBI Canada GIC process involves a thorough review of the application. After students submit their duly filled application form and relevant documents on the portal, SBI Canada takes five days to review the application.
Once confirmed, candidates receive a letter of confirmation or the Investment Declaration Advice, along with their Canada GIC account details and wire transfer information. Subsequently, students can deposit the Canada GIC amount into their super saver account.
Candidates can submit the Investment Declaration Advice when applying for a Canada study permit/student visa.
How should you transfer the Canada GIC Amount to SBI Canada?
- SBI Canada imposes additional fees for its GIC account services. The charges are CAD 150 if candidates send their GIC amount of CAD 10,000 through any lender other than the State Bank of India. For those using SBI’s Indian branches, the processing fees are CAD 150.
- When depositing their GIC Canada amount, students must add the applicable processing fees to the minimum amount of CAD 10,000 before sending this total through a wire transfer to SBI Canada.
- It’s important to note that SBI Canada does not accept wire transfers of the GIC Canada amount through service providers like money exchange houses, money transfer services, money services businesses, or any third-party services (such as parents, relatives, or friends).
Arrival Procedures for SBI Canada GIC Account Holders: Upon arriving in Canada, candidates who have opened GIC accounts with SBI Canada must take the following actions:
- Visit the nearest SBI Canada branch and submit the following documents to activate their accounts:
- Original passport.
- Original study permit (i.e., IMM 1442) issued by the Canadian High Commission.
- Original letter of enrollment issued OR Student ID card issued by their Canadian educational institution.
- A printout of the Investment Declaration Advice issued by SBIC.
- If candidates cannot locate the nearest SBI Canada branch, they have the option to visit any Canada Post locations in their vicinity. Details can be found on the official SBI Canada website.
SBI GIC Canada Amount Refund Policy: SBI Canada will refund the entire GIC amount under the circumstances outlined in the paragraph describing the various scenarios in which students may apply for a refund in the Canada GIC process. The SBI Canada GIC refund process is expected to take approximately 6 to 8 weeks to be completed.
3. ICICI Canada
To open a GIC account with ICICI Canada, you can register either online or by visiting a branch. Once the deposit is made, a confirmation document will be provided as proof of the GIC purchase. The mode of transfer for the deposit can be done through online banking, wire transfer, or in-person at a branch.
The lock-in period for the GIC varies based on the chosen term, ranging from 1 to 5 years. If a refund is requested before the maturity date, a processing fee may apply. As for interest benefits, ICICI Canada offers competitive interest rates. Additionally, interest can be paid out annually, semi-annually, or compounded.
How does the GIC work?
The process of obtaining a GIC for studying in Canada involves first choosing a participating Canadian financial institution and investing a minimum amount of CAD $10,000. Access to the funds is restricted, with $2,000 being released upon arrival in Canada and the remainder being released in monthly installments or payments over a period of two years. Documentation needed from the bank includes a GIC certificate and a letter of acknowledgment.
In the context of the Student Direct Stream (SDS) program, the GIC serves as proof of funds for a Canadian Visa, demonstrating that the student has sufficient funds to cover living expenses while studying in Canada.
Overall, the GIC provides a secure investment option for international students while ensuring they have the necessary funds to support themselves during their studies in Canada.
Why is a GIC Account Mandatory?
A GIC account is mandatory for Indian students studying in Canada for several reasons. Firstly, the purpose of the GIC is to ensure that international students have sufficient money to support themselves while studying in Canada.
Secondly, it is a requirement for obtaining Canadian visas and study permits, as it demonstrates financial stability and the ability to cover living expenses.
Indian students can purchase a GIC through designated Canadian financial institutions approved by the Immigration, Refugees, and Citizenship Canada (IRCC). The GIC application process involves registering for a secure email service, submitting the GIC application form, funding the GIC account with the required amount, applying for a study permit or visa, and completing documentation formalities in Canada.
In order to fund the GIC account, students can transfer the required funds from their home country to their GIC provider in Canada. Once the GIC is purchased, students can use the certificate as proof of funds when applying for their study permit or visa. Overall, a GIC account is a crucial step in the process for Indian students to study in Canada.
