Once you land in Canada on a Canadian student visa, you need to have enough funds to manage your living cost for at least one year of your stay. International students must purchase a Guaranteed Investment Certificate (GIC) as a compulsory requirement to study under the Student Direct Stream Program. GIC serves as proof of funds for students Applying for a Canada Study Visa.
Most Study Abroad Consultants have a thorough knowledge of GIC account procedures. If you are unsure about doing it yourself, you can always Contact an Expert Study Abroad Consultant.
What is GIC for Canada?
All international students must deposit one year’s living costs to the Canadian Bank to support themselves while studying in Canada. The guaranteed Investment Scheme is a short-term investment scheme offered to international students. To be eligible for a Canada Student Visa under the SDS program, students must have a GIC account.
Why is GIC Mandatory for Canada Student Visa?
Canada Immigration demands GIC for the following reasons:
- It serves as a security to the Canada Government that you have sufficient money in a Canadian bank to support yourself financially during your stay.
- It ensures prompt Processing of the Canada Study Visa. Candidates must submit proof of bank statements and the application for immediate results.
What is the Minimum GIC Amount for International Students?
The minimum GIC amount, as suggested by Canada Immigration, is CAD 10,000 for Canada Student Visa. All candidates must deposit this amount with the Canadian embassy’s registered and recognised lenders. Students can deposit from CAD 10,000 to CAD 50,000 in their respective savings accounts. The remaining amount is used to open a non-redeemable GIC account from which students may receive a nominal amount plus interest for a fixed period.
What is a Non-Redeemable Account?
A non-redeemable account allows students to deposit a fixed amount for a specific period and receive a fixed interest rate. Students can withdraw the remaining amount and the interest receivable after the validity expires.
How to Apply for a GIC Account?
Students need to apply for a GIC account at least a month before Applying for a Student Visa.
Three principal Canadian lenders are available for international students to open a GIC account:
- Scotia Bank, Canada
- SBI, Canada
- The ICICI Bank, Canada
Registration Process for Scotia Bank, Canada
Scotia Bank is one of the leading banks in Canada, and most international students prefer Scotia Bank to open a GIC account for Canada Study Visa.
The registration process for opening a GIC account in Scotia Bank involves the following steps:
- Register with Scotia Bank through an online form.
- Deposit a GIC of CAD 10000 (approx. 6 Lac rupees) and processing fees of $200(12,000 rupees) CAD for using Scotiabank services.
- You will receive your account number and wire transfer details after a successful registration.
- You will receive a confirmation letter from Scotia Bank titled “Investment Directions Confirmation. Candidates have to submit this letter to the embassy while Applying for a Student Visa.
- Scotia Bank will deposit CAD 8000 (≈ 4.75 Lac) out of the $10,000 (≈ 6 Lac) into a non-redeemable account. Students can withdraw a fixed amount every month to support their everyday expenses such as house rent, transportation costs, groceries, etc.
Documents Required During the Registration Process
- Investment Directions confirmation letter
- Valid passport
- Letter of enrollment from previous university/College
- Offer letter and study permit
Documents Required During Refund from Scotia Bank
- Scotiabank Investment account number
- Wire return bank account details
- Original case number and application letter stating the reason for refund.
Once all the above documents are submitted and verified, Scotia Bank will start the refund process. The process may take up to 4 weeks.
Registration Process for SBI, Canada
SBI, Canada has offered to open a GIC account for Students Migrating from India to Canada. While Scotia Bank has provided GIC service for many years, SBI Canada has introduced a GIC program recently to benefit Indian students.
The steps involved in the registration process for a GIC account in SBI bank is as explained below:
Step 1: Create an account in SBI bank.
Step 2: Upload a copy of the passport ID page and a copy of the offer letter from the college/university to complete the registration process.
Step 3: An investment account is created in SBI bank for GIC. After this step, the procedure is the same as the Scotia Bank registration process.
Please note that SBI bank will charge a non-refundable administration fee of CAD 150.
| GIC offering Banks in Canada | Scotia Bank | SBI, Canada | ICICI Bank, Canada |
| Mode of Registration | Online | Online | Online |
| GIC + Processing fees | $10,200 CAD | $10,150 CAD (6,13,319 INR) $10,100 CAD (if depositing through India) | $10,150 CAD (6,13,319 INR) |
| Name of Confirmation Letter | Investment Directions Confirmation | Investment Declaration Advice | Investment Balance Confirmation |
| GIC Refund Processing Fees | Disclosed at the time of refund | $25 | $10 |
| GIC Redeem Period | Minimum 12 months (Can be extended) | 12 months | 12 months |
| The monthly interest on GIC amount | Depends on the program | 1.15% | 1.0%(P.A.) |
Benefits of GIC for International Students
- Low-risk and predictable returns
- Short or Mid-term financial investment option
- The principal amount is secured
Conclusion
GIC is one of the simplest ways to show proof of funds for Getting a Canada Study Visa. Students will benefit from the yearly interest on the fixed amount and will also get a monthly amount to spend on daily expenses. A GIC account is not only used to secure a Canada Student Visa, but it can also serve as a wise option to earn profit from the short-term investment while studying. Our Study Abroad Consultants give you complete guidance on the process involved in securing a Canada Student Visa.
