Get complete information on GIC Canada. Check what is GIC Canada, full form, meaning, what it sands for and its importance for international students.
GIC Canada for international students is a Canadian investment which promises a guaranteed rate of return for a fixed period of time. Full form of GIC is Guaranteed Investment Certificate. It is a proof that the student has sufficient funds (at least $10,000) to cover his/ her living expenses in Canada for a year.
GIC is offered by several Canadian banks as a short-term liquid investment option. Currently, ICICI Bank Canada and Scotiabank are the only two Canadian financial institutions participating in the SPP and offering students GIC. A student can invest anywhere between $10,000 - $50,000 in the Scotiabank Student GIC Program.
Table of Contents
- What is GIC Canada?
- Importance of GIC Canada for International Students
- List of Financial Institutions that Provide GICs
- Criteria for Banks that offer Guaranteed Investment Certificate (GIC)
- Scotiabank Canada GIC Program
- ICICI Bank Canada GIC Program
What is a GIC Canada?
Guaranteed Investment Certificate (GIC) is a Canadian account deposit mandatory for international students from India and China applying for admission in a registered Designated Learning Institute (DLI) under the Student Partnership Program (SPP). Given below are the details about GIC:
- GIC worth $10,000 or more is required by students every year to pay for their living expenses (excluding tuition fees)
- Students applying for admission without SPP are also advised to open a GIC account
- GIC is available in the form of cashable/ redeemable and non-cashable GIC for international students
- Students can get their money back at any time without any penalty in case of cashable/ redeemable GICs
- Students cannot get their money back at any time without paying a penalty in case of non-cashable GICs
- The GIC interest rate is directly proportional to the term of the deposit. The longer the term of the deposit, the higher is the interest rate
- Students can avail of a portion of the deposited amount along with interest every month for the next 12 months
- The total amount of deposit along with the interest amount will be given back to the student at the end of the academic year
Importance of GIC Canada for International Students
GIC is a secure investment option that guarantees the full deposit amount in addition to the interest amount that is pre-determined for the duration of the deposit. Some of the reasons to purchase a Guaranteed Investment Certificate (GIC) are as follows:
- GIC serves as a guarantee to the Canadian government that one has sufficient funds to take care of their living expenses for a period of one year in Canada.
- GIC is needed for the Canadian visa application process and helps in easy and quick visa/study permit application and processing.
- Indian students who aspire to study in the SPP colleges in Canada require a GIC for a term duration of 6 months- 10 years along with proof of payment of tuition fees.
List of Financial Institutions that Provide GICs
The Canadian Deposit Insurance Company website lists all of the financial institutions that offer GICs. Some of the financial institutions that offer GICs are listed below:
- Bank of Beijing
- Bank of China
- Bank of Montreal (BMO)
- Bank of Xian Co. Ltd.
- Canadian Imperial Bank of Commerce (CIBC)
- Habib Canadian Bank
- HSBC Bank of Canada
- ICICI Bank
- Industrial and Commercial Bank of China
- RBC Royal Bank
- SBI Canada Bank
- Simplii Financial
- TD Canada Trust
Criteria for Banks that offer Guaranteed Investment Certificate (GIC)
The bank that gives you the GIC must fulfill the following requirements:
- The bank must provide one of the following documents to confirm that you bought a GIC:
- A letter of attestation
- A GIC certificate
- An Investment Directions Confirmation or
- An Investment Balance Confirmation
- The GIC must be held by the bank in either an investment account or a student account that you are not permitted to access until you arrive in Canada
- Prior to releasing any funds, the bank must verify your identity
- The funds must be released by the bank by providing:
- The first lump sum amount, once you arrive in Canada and identify yourself
- Rest of the funds, over 10 to 12 months in monthly or bi-monthly installments
Scotiabank Canada GIC Program
Scotiabank is one of the largest banks in Canada and is one of only two banks participating in the Student Partnership Program (SPP). The Scotiabank Student GIC Program (SSGP) is a special program for international students to meet the requirements of Citizenship and Immigration Canada. Students can also purchase GICs worth $10,000 from Scotiabank.
Key Features of the Scotiabank Student GIC Program (SSGP)
The Scotiabank Student GIC Program (SSGP) helps international students get their study permit and also helps them to plan their education by paying for living expenses. Some of the key features of SSGP are shown below:
- Students receive $2,000 along with accrued interest in their personal accounts at the time of their arrival in Canada
- Students can avail of parts of the total deposited amount along with interest every month for the next 12 months which can be used to pay for living expenses while in Canada
- Students will have received the total amount deposited along with the interest amount at the end of 12 months
- International students are required to pay $200 as fees towards the Scotiabank Student GIC Program (SSGP)
SSGP Application Process
International students can access the SSGP application form online on the official website of Scotiabank. The students are advised to read the terms and conditions carefully in the Application Disclosure Statement before proceeding with the application form. The SSGP application process is given below:
- International students should fill the SSGP application form online and submit it
- Upon successful submission of the form, the students will receive a secure email ID that can be used to access Scotiabank Secure Email Service
- The application is processed instantly and the students receive another secure email consisting of their Scotiabank Investment Account number and wire transfer details.
- Students should then remit an amount of $10,200 to Scotiabank for their Scotiabank Investment Account. This includes $200 as the program fees
- The amount should be transferred from the student’s own bank account in their home country. Funds transferred into Scotia Bank from third parties like parent’s/ other accounts will be rejected.
- The fund transfer may take up to 5 business days and upon successful transfer, the student will receive a confirmation mail namely “Investment Directions Confirmation”. This confirmation can be shown as proof while applying for a Student Visa for Canada.
Scotiabank GIC Account Activation
International students are required to activate their Scotiabank GIC account on moving to Canada. The students should make an appointment to visit any branch of Scotiabank and open a personal deposit account using their identification/ documentation. The documents needed to open a personal deposit account are listed below:
- Investment Directions Confirmation
- Valid Passport
- Letter of Enrolment from a Canadian Educational Institution (or a student ID card)
- Study Permit
- Welcome Letter
An amount of $2,000 plus any accrued interest will be deposited to the student’s personal account from their Scotia Investment Account. The pending $8,000 will be set aside for a non-redeemable GIC that provides fixed monthly payments in the Student Banking Advantage Plan account.
In the case of the study permit getting rejected or declined because of any reason, the entire amount of investment i.e $10,000 will be refunded back to the student by Scotia Bank. Once the refund is approved, it may take up to 4 weeks for the students to receive their refund.
ICICI Bank Canada GIC Program
ICICI Bank is the second-largest bank in India and is a wholly-owned subsidiary of ICICI Bank Limited. International students planning to study in Canada under SPP can apply for a GIC account at ICICI Bank Canada under which they receive a portion of their investment along with the interest for the next 12 months while in Canada.
Key Features of the ICICI Bank Canada GIC Program
ICICI Bank Canada Student GIC Program is for international students willing to study in Canada under the Student Direct Stream (SDS). Some of the key features of the ICICI Bank Canada GIC Program are as follows:
- Students receive an amount of $2,000 along with the accrued interest in their personal account at the time of their arrival in Canada
- The students will receive parts of the total deposited amount along with interest every month for the next 12 months.
- At the end of 12 months, students will have received the total amount deposited
- The amount can be used to bear the living expenses in Canada
- International students are required to pay a non-refundable participation fee of $150 for the ICICI Student GIC program
ICICI Bank GIC Program Application Process
International students should first register for the ICICI Bank GIC Program on the official website of ICICI Bank Canada. The step-wise ICICI Bank Canada GIC Program application process is given below:
- The applicant should visit the official website of ICICI Bank Canada and click on the ‘Student GIC Program’ tab to register for the program
- The students are required to fill in their name, username, and email address to complete the registration process
- Once done, the students will receive a confirmation mail having the activation link to complete the registration
- The student needs to click on the activation link to confirm their registration
- Students are required to deposit a minimum of $10,175 in their Student Investment Account via wire transfer. This includes a participating fee of $150 and $25 to cover any corresponding bank charges
- The entire amount should be deposited in a single transaction to the Investment account
- Once the funds are deposited in the Investment account, the students will receive a mail regarding Investment Balance Confirmation via the secure mailbox
- This Investment Balance Confirmation should be attached to the Visa/ study permit application to the Canadian Visa office in India.