Everything about GIC Account in Canada for Indian Students

If you are a student wanting to invest before your stay in Canada, GICs or Guaranteed Investment Certificates can be a wise alternative for you! Now, you might wonder, what is a GIC and why should Indian students in Canada have a GIC account. We, Thomas Cook, are here to efface your perplexity.

What is a GIC in Canada?

A Guaranteed Investment Certificate or GIC is a Canadian short-term liquid investment scheme provided by the Canadian Government. It guarantees international students a fixed rate of return within a stipulated period of time. It stands out as a secure way of investing and getting returns to pay for your studies and accommodation expenses in Canada.

A GIC is basically an investment account. They are a common investment choice among international students since they generally offer guaranteed returns. Even while those returns are normally insufficient to make GICs someone’s principal investment vehicle, they might appear more alluring when interest rates and economic uncertainty, both, are rising.

Understanding how GICs function is essential if you intend to invest in one so that you can determine how they could fit into your overall financial strategy. Let’s have a look at how it works!

How does GIC work?

The idea is very simple; students have to deposit a sum of money, from their original account in the Canadian currency rate, to the GIC account on which they receive interest. It is one of the safest investments with little or no risk. Moneyback is guaranteed. The amount of money that students must deposit into this account is set and students receive interest on this amount every month. This is in accordance with the Canadian government’s regulations for students who travel there to pursue their studies under the Study Direct Stream (SDS) Program. It is an essential document or a symbol of availability of funds by the applicant to study in Canada.

Under the Student Direct Stream (SDS), GIC operates as a savings account. Traditionally, it supplies all suitable candidates with steady returns over speculated time. The deposit of one year’s worth of living costs into a Canadian bank is a prerequisite for people who intend to enrol in a course through SDS. A GICs interest rate does not change unless you choose one with variable interest. Usually, GICs cannot be redeemed or cashed out.

Prior to applying for the GIC, you must choose your reliable bank account first and then sign up for a Secure Mail account. You may do this by submitting a copy of your passport and your Canadian enrolment documentation. You will be given an account number for your Canadian GIC account after that has been done. Then, for a single application, you will need to wire the equivalent of $10,000 CAD to the Canadian account in a single transaction or as necessary for you. However, keep an eye out for transfer fees and exchange currency rate  charges that might drive up the cost of your sizable transaction.

Why is a GIC Account Mandatory?

A GIC account in Canada is mandatory for any Indian student aspiring to study in Canada. It serves as a guarantee to the Canadian government that Indian students in Canada have enough money to cover their living expenses for a year in Canada. It guarantees speedier processing of a study permit or a Canadian visa. Candidates must provide pertinent verification of their bank statements. These candidates/students are expected to deposit a predetermined amount of money, which usually is, CAD 10,000 + CAD 200 which equals to CAD 10,200, with one of the registered and authorised Canadian embassies.

The remaining fund is transferred to a non-redeemable GIC account. This account enables the students to invest a particular amount for a specific period through which they can acquire benefits from a fixed rate of interest.

 4 Easy Steps to Open a GIC Account in Canada:

• First Step:Wisely choose an appropriate and authorised bank to open a GIC account in Canada. Register for the Email account.
• Second Step:Submit the GIC programme application online. You’ll be required to upload your passport copy and the documents of the admission letter.
• Third Step:  Deposit a minimum of CAD 10,000 in your account along with a processing fee of CAD 150 to CAD 200.
• Fourth Step: Receive your Investment Balance Confirmation and Certificate of Investment.

Every international student in Canada must deposit their expenses for up to one year in a Canadian Bank to qualify for a student visa. Indian students in Canada need not submit any other additional financial documents to Immigration, Refugees and Citizenship Canada (IRCC) – the department of the Government of Canada, as proof of their currency that covers their living expenses.

Crucial Details – GIC

• International students applying under the SPP Visa category in Canada must invest CAD 10,000 in the form of a GIC with a Canadian bank.

• Both Canadian Dollars (CAD) and U.S Dollars (USD)  are accepted for GICs.

• Every month for the first 12 months, you’ll receive a portion of the deposited amount.

• GICs are available in the form of cashable/redeemable or non-redeemable GICs. If you have a cashable or redeemable GIC, you can receive your money back without incurring any fees. However, with a non-redeemable GIC, you cannot get your money back without incurring a fee.

• The Total deposited amount and interest on the investment will be credited to you at the end of the term.

• Opening a GIC is beneficial as a GIC certificate acts as a support system. It guarantees the Canadian Government that you have sufficient funds to manage your accommodation for at least a year in Canada.

•  It’s also a crucial requirement for getting a student visa under the direct student stream and expedites the application and its processing.

Not to worry! Your money will be secured under the Canada Deposit Insurance Company (CDIC).

How to send money to a GIC account from India? 

A GIC is a secure investment option for international students, and how does GIC work in Canada? It allows you to earn interest on your deposit while providing proof of funds for your study permit application. Sending money to a GIC (Guaranteed Investment Certificate) account from India is straightforward, and here is a straightforward guide to help you through the GIC process. Here’s what you need to know about how to open a GIC account in Canada from India and the necessary steps to fund it.

• Choose Your GIC Provider: First, you need to select a Canadian bank or financial institution offering GIC accounts to international students. Popular choices include TD Canada Trust, Scotiabank, and CIBC. Research their terms and conditions carefully before making the decision.
• Gather Required Documents: To open a GIC account you will need the following-
• Your passport
• Acceptance letter from a Canadian educational institution
• Proof of funds (bank statements)
• Complete the Application: Follow the online application process of your chosen bank. This involves filling out your personal information and selecting the amount you wish to invest.
• Transfer Funds: Now, let’s talk about how to send money to a GIC account. You can use:
• Wire Transfers: This is a reliable option, all you need to do is contact your local bank in India for their international transfer process. Make sure you have the bank details of your GIC provider.
• Forex Services: You can consider services from Thomas Cook, which can provide competitive exchange rates and help with the transfer. They often offer guidance on paperwork too.

• Obtain Your GIC Certificate: 

You might wonder, how to get GIC certificate? Once your funds are successfully transferred and you have deposited the processing fee of CAD 150–200, you’ll receive the GIC certificate. Keep in mind that this document is essential as it confirms your investment and is required for visa processing.

• Final Steps: 

Finally, ensure you have kept a record of all transactions and confirmations. This will help you when you’re completing your visa application.

Knowing how to open GIC account in Canada from India simplifies your transition and if you need more assistance, Thomas Cook is here to help you with each step!

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