Canada GIC for international students
What Is A GIC?
A GIC (Guaranteed Investment Certificate) for international students is the proof of funds required for a student’s Canadian visa/study permit application. The Canadian government needs an assurance that once a student lands in Canada, he/she has sufficient funds (minimum 10,000 CAD) to cover their living expenses for at least one year.
GICs lock in the funds for a predetermined time with a fixed or variable interest rate. The interest rate is directly proportional to the time chosen i.e. the longer the time, the higher the interest rate.
Types of GICs For International Students
There are 2 types of GICs:
- Cashable or Redeemable GICs
In a cashable/redeemable GIC, financial institutions allow the holder to redeem or cash out their principal before maturity. Interest rates are typically lower.
- Non-Cashable GICs
A Non-Cashable GIC cannot be cashed in before the maturity date. The funds are locked in for a specific term. These yield a higher return.
How Does A GIC Work?
A GIC acts as a savings account that offers fixed returns to all eligible candidates over a period of time.
Once a student owns a GIC, the interest is paid out to their savings account at regular intervals or it can be added to the initial investment and paid at maturity.
When the term is over, and the GIC matures, the student can choose to automatically invest in another GIC or have the earnings deposited into his/her savings account.
How Is A GIC Different From A Regular Savings Account?
- Interest rates for a GIC do not fluctuate unless the student has opted for variable interest rate.
- GICs are typically non-redeemable. If he/she decides to break the non-redeemable GIC, they may be charged a penalty.
Benefits Of A GIC For International Students
- Low-risk and predictable returns.
- The principal amount is insured.
- A good option for short or mid-term financial goals.
Quick GIC Facts
- Students need a GIC to qualify for a student visa.
- An advantage of the program is that the student will have access to a Canadian bank account once a student account is set up in his/her name.
- As an alternate option, some universities allow students to submit a copy of:
The receipt for the first year’s tuition fee
An Educational Loan from an Indian Chartered Bank equivalent to CAD 10,000.
GIC For International Students: FAQs
What is the minimum & maximum amount that can be transferred into a GIC account?
Min: CAD 10,000 + 200 (processing fee)
Max: CAD 50,000 + 200 (processing fee)
What will be the monthly disbursed amount?
An equal monthly instalment of principal and interest will be paid from your GIC account into the student’s savings account for 12 months.
What if my VISA gets rejected?
If your VISA gets rejected, the entire amount deposited will be refunded back. However, the student needs to provide valid documents to support it.
What does a student have to do after arriving in Canada?
After reaching Canada, the student must do the in-person verification at the nearest branch of the GIC Account bank. With few banks, the verification can be done at the nearest post office.
Speaking of arrival in Canada, if you’re looking for indirect flight routes from India to Canada, you can find them here.
Can a third-party in India transfer or deposit funds into my GIC Account?
If a prior authorization is given by the student, a third party can transfer money into the student’s GIC account.
GIC For Students: Why GradRight Is A Good Option!
GradRight’s additional services, GradOns has partnered with ICICI Bank to help Canada-bound international students open a GIC Account. But why should you choose GradOns for your GIC?
- ICICI Bank is one of the most popular options for Indian students heading to Canada.
- Receive the Proof of Funds Certificate within 24 hours & if the source account is ICICI, then within 3 hours.
- 24/7 customer support in India and Canada.
- Debit Card delivered at Indian residence before travel.
- Operate the account from India.
- Low rejection ratio.
- Avail Credit card at no annual fee.
- Cashbacks & offers are available.
Click on ‘GradOns’ below to get started with your GIC Account.