What is a GIC Account & How to Open One for Studying Abroad

What is a GIC Account and How to Open One for Studying Abroad

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What is a GIC Account?

A Guaranteed Investment Certificate (GIC) is a secure and low-risk investment option offered by Canadian banks. It serves as proof of funds for international students planning to study in Canada under the Student Direct Stream (SDS) program.

By investing in a GIC, you demonstrate to the Canadian government that you have sufficient funds to cover your tuition fees and living expenses for the first year of your study program.

How Does a GIC Work?

To obtain a guaranteed investment certificate, you must make a short-term liquid investment with a Canadian bank, typically for a period of up to one year. The recommended amount for this investment is CAD 10,000. However, you can deposit anywhere between CAD 10,000 to CAD 50,000 in your savings account with a recognized lender registered by the Canadian embassy.

Once your GIC account is set up, the bank will disburse the funds in instalments over your first year in Canada. It’s important to note that you can only access these funds once you arrive in Canada.

How to Open a GIC Investment Account

Three major Canadian banks offer GIC services to international students: Scotiabank, SBI Canada, and ICICI Bank Canada. We will explore the process for each of these banks in detail.

Opening a GIC Account with Scotiabank

Scotiabank is a popular choice among Indian students for opening a GIC investment account. The registration process is conducted online and involves a registration fee of CAD 200. Once you complete the registration, Scotiabank will provide you with an investment account number and wire transfer details.

Upon arriving in Canada, you will need to activate your Scotiabank GIC account by visiting the nearest branch and submitting the necessary documents, including your investment directions confirmation letter, valid foreign passport, letter of enrollment from your university, study permit, and welcome letter.

Opening a GIC Account with SBI Canada

SBI Canada also offers GIC services for Indian students planning to study in Canada. To open a GIC investment account with SBI Canada, you need to register on their website and upload scanned copies of your passport ID page and college/university offer letter. The registration process is straightforward, and once your application is reviewed and confirmed, you will receive an investment declaration advice document along with your GIC account details.

Upon arrival in Canada, you must visit the nearest SBI Canada branch and provide them with your original passport, study permit, letter of enrollment, and a printout of the issued investment declaration advice.

Opening a GIC Account with ICICI Bank Canada

ICICI Bank Canada also offers guaranteed investment certificate services for Indian students. To start the application process, register for the ICICI Bank Canada Student GIC Program online. Once registered, complete the application form and submit it along with a scanned copy of your passport and proof of enrollment (if available). An account number will be generated instantly. Do note that CAD 150 is charged to cover the student account processing fee.

After depositing your funds, ICICI Bank will send you an Investment Balance Confirmation via email. This confirmation serves as proof of your investment and should be retained for future reference.

Comparing Guaranteed Investment Certificate Rates

When choosing a bank for your GIC account, it’s essential to compare the interest rates offered by different lenders. Here is a table comparing the current guaranteed investment certificate rates offered by Scotiabank, SBI Canada, and ICICI Bank Canada:

Please note that guaranteed investment certificate rates may vary over time, so make sure to check with the respective banks for the most up-to-date information.

Following your guaranteed investment certificate account setup in Canada, enjoy the convenience of the Niyo card as an international student. This card ensures seamless transactions while studying abroad, allowing you to load money in your home currency and use it in any country.

Key Takeaways

• A guaranteed investment certificate account is a requirement for Indian students planning to study in Canada under the SDS program.
• Opening a guaranteed investment certificate account provides proof of funds and financial stability during your initial year in Canada.
• Scotiabank, SBI Canada, and ICICI Bank Canada offer GIC services for Indian students.
• Compare guaranteed investment certificate rates offered by different banks before making a decision.

Opening a GIC investment account is an important step in fulfilling visa requirements and ensuring financial stability while studying abroad. By following the step-by-step process outlined in this guide, you’ll be well-prepared to embark on your international education journey with confidence.

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