What is GIC Canada for International Students - A Brief Guide

Guaranteed Investment Certificate (GIC) is a mandatory financial requirement for international students applying under the Student Direct Stream (SDS) in Canada. Students must deposit a minimum of CAD 20,635 in a Canadian bank, ensuring they have sufficient funds for living expenses. This amount is gradually disbursed over 12 months to help cover daily costs.

Understanding the GIC process is crucial for securing a Canadian study permit and managing finances effectively. Several banks, such as Scotiabank and ICICI Canada offer GIC programs tailored for international students. This blog will guide you through what is GIC Canada for international students, its benefits, and how to apply for it.

What is GIC Canada for International Students?

A Guaranteed Investment Certificate (GIC) is a vital financial requirement for international students pursuing education in Canada under the Student Direct Stream (SDS). By depositing at least CAD 20,635 in a participating Canadian bank, students can demonstrate their ability to cover living expenses during their first year of study. This amount is then distributed monthly to help students manage their costs effectively.

GIC not only fulfills visa requirements but also provides financial security by ensuring a steady cash flow for essential expenses. Major banks like Scotiabank, ICICI Bank Canada, and CIBC offer GIC programs specifically designed for international students.

Due to rising living costs and inflation, the required GIC amount has increased from CAD 10,000 to CAD 20,635 in 2024. This adjustment ensures students have adequate financial support throughout their studies in Canada. Choosing the right GIC plan can help in better financial planning and a smoother transition to student life.

Types of GIC Canada for International Students

International students in Canada can choose from different types of GICs based on their financial needs and visa requirements. These options vary in terms of accessibility, returns, and lock-in periods.

• Non-Cashable GIC - Ideal for students who can keep their funds locked for a fixed period. This type offers the highest return rates, but the money remains inaccessible until the GIC matures.

• Cashable GIC - A flexible option with no lock-in period, allowing students to withdraw funds anytime. It is suitable for short-term investments, though withdrawals may be subject to a monthly limit.

• Equity-Linked GIC (Market Growth GIC) - In this GIC, returns are tied to market performance, providing both a guaranteed minimum return and a potential bonus based on market growth. This option balances security with the possibility of higher earnings.

Explore this article on the benefits of studying in Canada

Benefits of GIC Canada for International Students

A GIC is more than just a visa requirement - it offers financial stability and structured fund management for international students. Below are some key advantages of having a GIC account in Canada.

• Proof of Funds: A GIC account meets the Canadian government’s financial requirements, demonstrating that students have sufficient funds for their first year by depositing the mandated amount.

• Ensures Financial Stability: The funds are disbursed in monthly installments, ensuring students have a steady income for essential expenses like rent, food, and transportation.

• Flexibility in Fund Access: Although the initial deposit is locked, funds become available in monthly installments upon arrival in Canada, making budgeting easier for students.

• Interest Earnings: GICs come with a fixed interest rate, allowing students to earn additional income on their investment over time, depending on the financial institution and type of GIC chosen.

Learn about the best courses in Canada for PR in this blog.

Step-by-Step Application Process for a Guaranteed Investment Certificate (GIC)

Applying for a GIC is a crucial step for international students planning to study in Canada under the Student Direct Stream (SDS). The process involves selecting a bank, opening an account, and depositing the required amount. Following the correct steps ensures a smooth application and timely access to funds.

Step 1: Register for Bank-secured Email Service

In order to apply for a GIC, you would need to register with an authorized Canadian bank to get secured email services. This service allows the individual to securely transmit documents and personal information to the bank.

Step 2: Submit the Student GIC Program Application

Once you have registered for the bank's secure email service, you will receive an email for Student GIC Program Application. You would need to fill in all the necessary information in the form including your contact details, education and employment history, and financial situation. You can fill out this form either online or offline. To fill out the form offline, you need to download the form from the registered email address and take a printout of the form.

Note: The application process can take up to 5 business days.

Step 3: Fund your account

After submitting the Student GIC Program Application, you will get an “investment account number” with funding details in your secured email. You would need to fund your account with at least CAD 20,635 plus the transaction fees (if any). This can be done by transferring money from your personal savings account or joint savings account.

Step 4: Apply for the Study Permit/Visa

Once you have funded your account, you can apply for a Study Permit/Visa. You can apply for it from the Canadian office in your respective country. You would also need to submit an investment account number for a student permit/visa.

You can get all the details about the Canada Student Visa, its requirements, and its process here.

Step 5: Complete the documentation formalities

After arriving in Canada, visit any of the branches of the bank with which you have opened your GIC account and complete all the documentation formalities. For this, you would need to bring: a valid Passport, Study Permit, investment Balance Confirmation, and a letter of admission from the Canadian university.

Once these steps have been completed, then you will be enrolled in the GIC program and you can start investing your funds in the GIC.

Note: In case your study permit/visa is declined, you will get a refund of the amount in your source account. To get the refund, you would need to give proof of cancellation of your study permit and withdrawal of enrollment from the Canadian education institution or declined admission application from a Canadian educational institution.

Explore the average cost of studying in Canada for Indian students here!

Financial Institutions That Offer GIC

Just understanding what is GIC Canada for international students is not enough, you will need to know which financial institutes are authorized to provide GIC. You can get a GIC account from any of the banks that are authorized by the Canadian government. Also, make sure that the financial institution you choose offers GIC and fulfills all the criteria for the Student Direct Stream.

Below are the three popular banks where you can open a GIC account as an international student.

Explore the available scholarships for Indian students in Canada here.

How to Select the Best GIC for Studying in Canada

Choosing the right GIC is essential for managing your finances effectively while studying in Canada. Consider the following factors to make an informed decision.

• Bank Reputation and Services: Opt for a well-known bank with a strong reputation and student-friendly services to ensure a smooth experience.

• Interest Rates and Returns: Compare interest rates across banks to maximize your earnings and choose a GIC that offers the best return on your investment.

• Withdrawal Flexibility: If you need access to funds sooner, consider a cashable GIC, as it allows early withdrawals with certain conditions.

• Processing Time and Fees: Some banks have quicker processing times and lower fees, helping you complete the GIC setup without unnecessary delays or extra costs.

• Student Support and Accessibility: Look for banks that provide dedicated student support, easy online application options, and accessible branch locations in Canada.

Navigate the Complexities of Studying Abroad With GetGIS

GIC is a safe and secure investment option for international students in Canada. With guaranteed returns and easy accessibility, it is a great way to save money while studying in Canada and also help in meeting the financial requirements of the student visa application. It is essential to always consider the terms and conditions of a GIC before investing and to compare rates of return offered by different banks.

At GetGIS, we understand the challenges and complexities of studying abroad as an international student. Our experts are well-equipped and provide end-to-end assistance with all your immigration needs.

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