If you are an international student looking to study in Canada, one of the key requirements you need to fulfill is obtaining a GIC (Guaranteed Investment Certificate). It is a mandatory step for students applying for a Canada student visa under the Student Direct Stream (SDS) program. The GIC serves as proof of funds that ensures you have sufficient financial resources to cover your living expenses during your stay in Canada.
In this blog, we will explain everything you need to know about GIC Canada for international students, the amount you need to invest, and how it works to support your visa application.
What is GIC Canada For International Students?
GIC Canada, or the Guaranteed Investment Certificate, is a fixed investment offered by Canadian banks. International students applying for a study permit are required to deposit a certain amount into a GIC account as part of their application under the SDS program. This is a secure investment that guarantees you have enough funds to cover living expenses in Canada for one year. The GIC full form stands for Guaranteed Investment Certificate, and it’s essentially a proof of your financial stability.
Is GIC Mandatory for Canada?
Yes, GIC is mandatory for Canada if you are applying for a study visa under the Student Direct Stream (SDS) program. This is a specific requirement for international students to ensure that they have adequate funds to support themselves while studying in Canada. Without a GIC, your visa application under SDS cannot be processed.
What is the GIC Amount for a Canada Study Visa?
The GIC amount for Canada varies by the bank but is generally CAD 10,000 or more (around INR 6 lakhs). This deposit acts as your living expenses for one year in Canada. After you deposit the required amount, the bank will place a portion of the funds into a non-redeemable account and allow you to access a fixed amount each month to cover your living costs.
The GIC amount for Canada is designed to ensure students can meet their financial obligations without worry during their studies.
What is a Non-Redeemable GIC Account?
A non-redeemable GIC account means that the funds deposited cannot be accessed all at once but are locked in for the term of the GIC (usually 12 months). You’ll receive monthly payments from the account, typically around CAD 667 per month, to cover your living expenses. This system helps students manage their finances in Canada while ensuring that the full amount is only accessible at the end of the term, with interest added.
Banks Offering GIC for Canada Study Visa
Students can open a GIC account at several Canadian banks, which offer specific programs for international students. Some of the most popular banks for this service include:
- Scotiabank
- ICICI Bank
- SBI Canada
| Bank | Scotiabank, Canada | ICICI Bank,
Canada |
SBI,
Canada |
| Registration Mode | Online | Online | Online |
| GIC + Processing Fee | CAD 10,200 (Rs. 6,20,542) | CAD 10,150 (Rs. 6,17,500) | CAD 10,150 (Rs. 6,17,500) CAD 10,100 (SBI India) (Rs. 6,08,375) |
| Confirmation Document Name | Investment Directions Confirmation | Investment Balance Confirmation | Investment Declaration Advice |
| Transfer Mode of GIC Amount | Wire Transfer | Wire Transfer | Wire Transfer |
| Refund Processing Fee of GIC | Mentioned during refund | CAD 10 (Rs. 608.38) | CAD 25 (Rs. 1,520.94) |
| GIC Redeem Period | Minimum 12 Months (Can be extended) | 12 Months | 12 Months |
| Monthly Interest on GIC Amount | Depends on the chosen program | 1.0% (p.a) | 1.15% |
Each bank provides different terms for the GIC, but all of them are accepted by the Canadian government as proof of financial stability for students.
How to Open a GIC Account Through Scotiabank?
Scotiabank is one of the most trusted banks for international students seeking a GIC in Canada. Here’s a simple guide to open a GIC account:
- Register online with Scotiabank.
- Deposit the required CAD 10,000 (plus processing fees).
- Once the deposit is made, you will receive login credentials and account information.
- The bank will send an Investment Directions Confirmation letter, which is required for your visa application.
The bank will hold a portion of your deposit in a non-redeemable GIC account, and you will receive a fixed monthly allowance, which helps you manage your living expenses in Canada.
How to Open a GIC Account Through SBI/ICICI Bank?
The process of opening a GIC account with SBI or ICICI Bank is similar to the one with Scotiabank. Here’s a breakdown:
- Complete the registration online, upload necessary documents like your study permit, offer letter, and passport.
- You will receive an Investment Declaration Certificate from the bank.
- Once your payment is processed, the bank will deposit the funds into a non-redeemable account and provide the account details.
These banks also provide secure and reliable options for international students to meet the GIC mandatory requirement for their Canada student visa.
What Is a Canadian Guaranteed Investment Certificate?
A Guaranteed Investment Certificate (GIC) in Canada is a low-risk investment product offered by Canadian banks. It allows students to deposit a fixed amount of money for a predetermined period, typically one year. During this period, the bank offers interest on the GIC, and at the end of the term, the student can access the full amount, plus any interest accrued.
Understanding Canadian Guaranteed Investment Certificates
With GICs, you deposit cash into a bank and receive interest. The required deposit period is fixed, and the interest rate depends on the commitment’s length. In essence, when you get a GIC, you are lending your money to the bank and receiving interest in return.
Since the banking firms that sell GICs are required by law to repay investors’ principal and interest, they are regarded as safe investments. Investors are covered up to CAD 100,000 by the Canadian Deposit Insurance Corporation even if the bank fails.
How do Banks Profit from Guaranteed Investment Certificates?
Banks profit from GICs by lending out the deposited funds at a higher interest rate than they pay on the GIC. For example, if a bank lends money at 8% interest but offers a GIC at 5%, the bank earns the difference, which helps them generate income.
Conclusion
The GIC for Canada student visa is an essential step for international students applying through the Student Direct Stream program, ensuring that they meet the financial requirements for living in Canada. The GIC amount, typically CAD 10,000, is held in a secure account, providing monthly installments to cover living expenses. This investment also offers a guaranteed return, making it a reliable and safe option for students. Understanding the process and eligibility for GIC is crucial for a smooth visa application. By meeting these requirements, students can focus on their studies while ensuring their financial security in Canada.
For any inquiries or assistance, feel free to reach out to us at Croyez immigration. Our team is here to help you with all your questions and provide the support you need.
Frequently Asked Questions about GIC for Canada Study Visa.
1. Is GIC mandatory for Canada student visa?
Yes, GIC is mandatory for Canada as part of the application for a study visa under the Student Direct Stream (SDS) program.
2. What is GIC Canada for international students?
GIC Canada is a fixed investment account that international students use to meet the financial requirements of the Canada student visa. It helps demonstrate proof of funds to cover living expenses for one year in Canada.
3. What is the GIC amount for Canada student visa?
The GIC amount for Canada generally ranges between CAD 10,000 and CAD 50,000, depending on the bank. This is used as proof of funds for your living expenses.
4. How much GIC you get every month?
Students can typically withdraw CAD 667 per month from their GIC account. This amount helps them cover their living expenses during their stay in Canada.
5. Is GIC compulsory for Canada?
Yes, GIC is compulsory for Canada student visa applicants, especially those applying under the Student Direct Stream program.
6. What is the full form of GIC for a student visa?
The full form of GIC is Guaranteed Investment Certificate. It is a type of secure investment used by international students as proof of funds for their Canada student visa application.
7. Can GIC be paid from a parent’s account?
Yes, you can pay the GIC from a parent’s account, but you will need to provide proper documentation to show that the funds are genuinely for your education and living expenses in Canada.
