Latest Updated Guide for GIC in Canada 2024 with Gradding.com

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Know Everything About Latest Updates on GIC in Canada 2024

Moving to Canada can be an exciting yet challenging experience. As, it is crucial to have a solid financial plan, regardless of your period of stay.The good news is that Canada offers a plethora of financial products to help you achieve your financial goals. One such product is GIC in Canada: Guaranteed Investment Certificates (GIC’s), which offer a range of savings accounts and investment opportunities to fit every budget. So, are you ready to take advantage of the world of GICs, so let’s get started. 

Overview of GIC in Canada

Recently Canadian government made an important announcement in 2024 : they've put a temporary limit on the number of student visas they're giving out for undergraduates. Plus, get ready for a bit of a shock—living expenses for international students is double from 10,000 to 20,000 CADs!

As an Indian student, if you're planning to study in Canada, you can apply for a study permit through the Student Direct Stream (SDS) program. This program helps speed up the process of getting your study permit. To qualify for SDS, you need to meet certain requirements, including having an acceptance letter from a Designated Learning Institution (DLI) in Canada, which is the university you've chosen to attend. Another requirement for SDS is having a Guaranteed Investment Certificate (GIC).

The GIC in Canada, Guaranteed Investment Certificate the proof of your financial stability as a student can seem daunting at first. But with correct knowledge, you can complete the process easily. In this blog, we'll delve into what GIC entails, its significance for Canadian study visas, the best banks offering GIC services, and essential considerations for prospective students, particularly those from India. Let's explore what GIC Canada is all about.

Understanding GIC in Canada in Detail

GIC full form is Guaranteed Investment Certificate. In Canada, GIC serves a dual purpose: it acts as a savings account and fulfills a requirement for international students applying for a Canadian study visa. Essentially, it demonstrates financial stability and readiness to cover living expenses while studying in Canada.

Why GIC Is Needed?

Canadian immigration authorities require international students to deposit a specific amount into a GIC account as proof of financial capacity. 

GIC Amount in Canada?

As of recent guidelines, international students need to deposit CAD $20,000 into their GIC account. The maximum can go up to CAD$ 1,00,000. Although deposits can be made both in USD or CAD$. 

How GIC Account Works?

Upon opening a GIC account with a designated Canadian financial institution, the deposited funds are locked for a predetermined period, typically up to 12 months. During this period, students cannot access the funds, ensuring they remain intact for living expenses upon arrival in Canada. After maturity, the principal GIC amount in Canada along with interest is released to the student.
Also candidate receive some funds every month for living expenses. This was a brief about GIC, moving ahead to explore the related terms for the same.

What Is GIC and Related Terminology by Gradding.com

A GIC, or Guaranteed Investment Certificate, is a type of investment ideal for students considering studying in Canada. It's a low-risk option where you give a specific amount of money to a bank for a fixed period. In return, the bank promises to give you back your money along with some extra cash as interest when the term ends.
Here are some important terms to remember when thinking about getting a Canada GIC:

1. Low Risk Investment: 

GICs are known for their low-risk nature. They ensure the safety of your investment, providing a secure option for students looking to grow their savings without taking on significant risks.

2. Fixed Term:

When you invest in a GIC, you agree to keep your money with the bank for a set period, known as the term. This duration can vary, typically ranging from a few months to several years, depending on the specific GIC Canada terms.

3. Interest Rates:

GIC interest rate determines the additional money you'll earn on top of your initial investment. Generally, longer-term GICs offer higher interest rates, providing an opportunity for students to maximize their returns over time.

4. GIC Ladder Strategy: 

This strategy involves diversifying GIC investments across different terms. For instance, students may invest in GICs with terms of one, two, three, four, and five years. As each GIC matures, the funds are reinvested into a new GIC with the longest term, creating a steady stream of income while still earning competitive interest rates.

5. Tax Implications: 

It's important to be aware that the interest earned on GICs is considered taxable income. As such, students need to report it on their tax returns. Depending on their tax bracket and other sources of income, they may owe taxes on the interest earned from their GIC investments.
Understanding these terms can help students make informed decisions about their finances and GICs. Movinag ahead to discover the perks of inventing in the GIC.

Benefits of Investing in GIC Canada

Benefits of investing in GIC by Gradding.com

GIC is considered more of a levy than ease but, investing in a Guaranteed Investment Certificate (GIC) offers several benefits, including:

1. Guaranteed Returns:

GICs provide a guaranteed rate of return on your investment, ensuring that you receive back your initial principal amount along with interest at the end of the term.

2. Compound Interest:

 Many GICs offer compound interest, allowing your earnings to grow not only on your starting amount, but also on the interest earned over time. It provide you accelerated growth of your investment after the course. Long term GIC provide better returns than low term GIC.

3. Low Risk: 

GICs are considered low-risk investments because they are typically issued by banks or credit unions and are insured by government deposit insurance programs. So, you don't have to worry much about losing your money.

In Canada, if you invest in a GIC, your money is protected by Canada Deposit Insurance Corporation (CDIC). This means that if something happens to the bank or financial institution where you put your money, you can get back up to $100,000 per person, for each type of account you have.

4. Flexibility: 

GICs offer various terms ranging from months to years, allowing you to choose the term ( from 30 days to 10 years )that best fits your financial goals and liquidity needs with nominal fees. 

5. Competitive Interest Rates: 

GICs often provide competitive interest rates compared to other low-risk investments. Which means you can make more money with GIC without taking big risks.

6. Securing Visa:

Having a GIC is one of the essential things while applying for a Canada visa. So, if you are thinking, “how the GIC can help with your Canadian Student Visa” it will assure the government that you have sufficient funds to survive in the nation. 

However, there is no specific eligibility criteria for GIC account Canada other than Letter of Acceptance from preferred Canadian university, so explore the documents required in the upcoming section.

Also read: Study in Canada: IRCC Update in 2024 and Application Process

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Documents Required for GIC in Canada:

The specific documents required may vary slightly depending on the bank, but generally, you'll need to provide the following:

1. Passport: A copy of your passport, including the identification page with your photo and personal information.

2. Letter of Acceptance: A copy of your letter of acceptance from a Canadian educational institution, confirming your enrolment as a student.

The process of obtaining a GIC for the Canadian Study Visa is very simple consists of only 4 steps that can be done online. Read the following section to uncover the steps.

4 Easy Steps to Open GIC Account in Canada:

 How to open a GIC account in Canada by Gradding.com

First Step: Register with Bank:

Wisely choose a suitable and authorised bank to open a GIC account in Canada. Register for the account. Consider factors such as interest rates, fees, and customer service reputation.

Second Step: Submit Application 

Submit the GIC programme application online. You’ll be required to upload your passport copy and the documents of the admission letter. Fill out the online application form with your personal details, including your name, contact information, and passport number.

Third Step:  Deposit the Fund

Deposit a minimum of CAD 20,000 in your account along with a processing fee of CAD 150 to CAD 200.

Fourth Step: Receive GIC:

Receive your Investment Balance Confirmation and Certificate of Investment.

Eligibility Criteria:

  • To be eligible for a student visa, every overseas student in Canada must deposit their expenditures in a Canadian bank for up to a year. 
  • Indian students in Canada do not need to present any further financial documentation to Immigration, Refugees and Citizenship Canada (IRCC), a department of the Government of Canada, as proof of their currency that supports their living expenses.
  • Upon arrival in Canada, you'll need to visit the bank in person to complete any remaining formalities and activate your GIC account.
     So, it is important to choose the best suited, but how?, check the key factors below.

Also read: How to Apply for Canada Student Visa in 2024?

Which Bank to Choose for GIC Canada As Indian Student?

As an Indian student studying in Canada, choosing the best bank for GIC in Canada for international students is crucial. Here are some considerations to help you make an informed decision:

1. Indian Student-Friendly Banks: Look for banks that specifically cater to international students, including those from India. Banks like ICICI Bank Canada and State Bank of India (SBI) Canada often offer tailored GIC packages designed to meet the needs of Indian students.

2. Competitive Interest Rates: Compare the interest rates offered by different banks for GIC Canada. Choose a bank that offers competitive rates to maximize your returns on investment.

3. Low Fees and Charges: Pay attention to any fees or charges associated with opening and maintaining a GIC account. Look for banks that offer low or no fees to minimize your expenses.

4. Ease of Application: Consider the ease of the application process when choosing a bank for your GIC. Opt for banks that offer convenient online application options and streamlined procedures to save time and hassle.

5. Reputation and Stability: Choose a bank with a solid reputation and financial stability. Look for banks that are well-established and reputable in Canada to ensure the safety and security of your investment.

6. Customer Service: Consider the level of customer service provided by each bank. Look for banks with responsive customer support and convenient online and in-person banking services to assist you throughout the GIC process.

Explore which bank to choose as an Indian student with Gradding.com

Based on these factors, banks like ICICI Bank Canada, Scotiabank and State Bank of India (SBI) Canada are popular choices among Indian students studying in Canada. However, it's essential to research and compare the offerings of different banks to find which bank is best for GIC in Canada that best suits your individual needs and preferences as an international student or a future working professional in Canada. For more information, you can also get in touch with our Overseas Education Consultants in Chennai or any other city. 

Conclusion:

Now you know that, as an Indian Student, studying in Canada, Guaranteed Investment Certificate (GIC) is not just a compulsion. It serves as a valuable financial tool. GIC offers stability, security, and competitive returns. By carefully evaluating factors such as interest rates, terms, and fees, you can make informed financial decisions, while studying in Canada. Furthermore, if you require professional guidance reaching out to an expert from Gradding.com can simplify the process. Their assistance extends beyond GICs to cover various aspects of how to plan your study abroad journey.

Frequently Asked Questions About GIC

Is GIC Refundable?

Yes, GIC (Guaranteed Investment Certificate) is refundable under certain circumstances. If your Canadian study visa application is denied, or if you decide not to pursue your studies in Canada for any reason, you can request a refund of your GIC. However, the process and conditions for obtaining a refund may vary depending on the bank and the specific terms of the GIC agreement.

What Happens to GIC if the Visa Gets Refused?

If your Canadian study visa application is refused, you can request a refund of your GIC from the bank where you purchased it. Typically, you would need to provide proof of visa refusal, such as the official refusal letter from the Canadian immigration authorities. Once the bank verifies the refusal, the bank will initiate the refund process.

Can I Withdraw My Student GIC?

No, in most cases, you cannot withdraw your student GIC until you arrive in Canada and fulfil the conditions of the GIC agreement. The purpose of the GIC is to demonstrate your financial capacity to support yourself during your studies in Canada, and the funds are typically locked for a specific period, usually up to 12 months. Once you arrive in Canada and begin your studies, you can access the funds from your GIC account to cover your living expenses. After the maturity period, which varies depending on the terms of your GIC agreement, you can withdraw the principal amount along with any accrued interest.

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View all comments
Mitaksh Bose

This write-up helped me to gather all the documents required for GIC in Canada. 

Roshni Gupta

Can you provide some other reasons to choose an ideal bank for GIC for an Indian student?

gradding

Of course! When choosing a bank for your GIC, take into account elements like benefits for currency conversion, unique student packages, strong student support services, interaction with study abroad platforms, and chances to earn credit. Being an Indian student studying in Canada can be made better by taking into account these particular factors.

Rohan Ahuja

Can you help me in the process of getting a GIC in Canada?

Shivani Joshi

Reading the blog helped me clear many of my doubts about the improtance of GIC.

Manju Sharma

I got an clear idea of what GIC in Canada actually is. This blog is really helpful.

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