“Discover the latest updates on the GIC amount for Canada study visa in 2024. Stay informed about the financial requirements for studying in Canada and plan your education journey accordingly.”
In order to study in Canada, a student must obtain a GIC certificate, which serves as a “proof of funds” for a period of one year. As a requirement for studying in Canada, all overseas students who have applied under the Student Direct Stream or the SDS are required to obtain a Particular GIC Amount for Canada Study Visa.
This is all the information you require about GIC Canada, the banks that offer GICs, and how to open GIC accounts in order to finish the visa application process.
GIC Amount for Canada Study Visa
The Guaranteed Investment Certificate, or GIC, is its full name. All international students must provide “proof of funds” equivalent to one year’s worth of payments into a Canadian bank account in order to be eligible for a study visa in Canada. A GIC is a one-year investment plan appropriate for students who meet the requirements of the SDS program.
Is GIC Required in Canada?
People need a GIC Canada certificate because
- A GIC certificate expedites the processing of a study permit or an investor visa for Canada.
- For it, students must present a legitimate bank statement.
- It ensures to the Canadian government that each person will have sufficient funds to support themselves for a year in Canada.
What is the GIC Amount for Canada Study Visa?
As part of the GIC certificate application process, students need to deposit a minimum amount of money known as “GIC Amount for Canada Study Visa ” with one of the authorized lenders registered with the Canadian embassy. For overseas students applying for a GIC, the deposit amounts vary from CAD 10,000 to 50,000 (about INR 6 lakhs to 30 lakhs). After a predetermined amount of time, students can withdraw the minimal amount plus interest from the non-redeemable account that was created using the balance.
GIC Amount for Canada Study Visa Overview
| Article name | GIC Amount for Canada Study Visa |
| Organization | Canada Revenue Agency |
| Country | Canada |
| Netfiling process mode | Online |
| Eligibility | GIC Amount Beholders |
| Post type | Finance |
| Website | www.canada.ca |
A Non-Redeemable GIC Account
International students can receive a predetermined interest rate by putting specific monies in a non-redeemable GIC account for a predetermined amount of time. Students can withdraw the remaining balance of their GIC as well as the accrued interest after the validity period has elapsed.
Banks That Provide GIC Amount for Canada Study Visas
Students must create a GIC account at least one month before to applying for a visa. They may select one of the following three to get GIC Amount for Canada Study Visa:
- ICICI Bank, Canada
- SBI, Canada
- Scotia Bank, Canada
| Bank | Scotiabank, Canada | ICICI Bank, Canada | SBI, Canada |
| Registration Mode | Online | Online | Online |
| GIC + Processing Fee | CAD 10,200 (Rs. 6,20,542) | CAD 10,150 (Rs. 6,17,500) | CAD 10,150 (Rs. 6,17,500) CAD 10,100 (SBI India) (Rs. 6,08,375) |
| Confirmation Document Name | Investment Directions Confirmation | Investment Balance Confirmation | Investment Declaration Advice |
| Transfer Mode of GIC Amount for Canada | Wire Transfer | Wire Transfer | Wire Transfer |
| Refund Processing Fee of GIC | Mentioned during refund | CAD 10 (Rs. 608.38) | CAD 25 (Rs. 1,520.94) |
| GIC Redeem Period | Minimum 12 Months (Can be extended) | 12 Months | 12 Months |
| Monthly Interest on GIC Amount for Canada | Depends on the chosen program | 1.0% (p.a) | 1.15% |
How can I Open a GIC Account Through Scotiabank?
When it comes to opening a GIC Canada account, Scotiabank is thought to be the best option for international students. A legitimate GIC certificate is given to international students through the Scotia Bank GIC program. The following are the steps involved in establishing an account:
- To join Scotia Bank, complete the online registration process.
- A GIC of CAD 10,000 (6 Lakhs + INR) plus a processing charge of CAD 200 (12,000+ INR) must be deposited.
- Following a successful registration, you will receive instructions about your account number, wire transfer, and login credentials.
- As a confirmation, Scotia Bank will immediately send you a letter titled “Investment Directions Confirmation.”
- When requesting a visa, you have to send the confirmation letter to the embassy.
- In order to cover your living needs, the bank places CAD 8000 (4.86 lakhs INR) of the CAD 10,000 into a non-redeemable account. From this account, you can withdraw a set amount each month.
The following paperwork must be submitted in order to complete the registration process:
- Investment Directions Confirmation letter
- Offer letter
- study permit
- a valid passport
- Enrollment letter from the university
How Can I Open an ICICI/SBI GIC Account?
The process for opening a GIC account at SBI Canada or ICICI is essentially the same as that of Scotia Bank. Among the variations in the steps are
- Create a GIC account with ICICI/SBI.
- You need to upload a copy of your academic transcripts and passport ID page in order to finish the registration process.
- Verify each document by yourself before scanning and submitting any.
The following paperwork must be submitted in order to complete the registration process:
- Permit for Study and
- Investment Declaration Certificate
- A current passport
- Enrollment letter
Canadian Guaranteed Investment Certificate
Upon obtaining guaranteed investment certificates (GICs) from financial institutions in Canada, investors deposit money into the bank for a prearranged duration and get interest on the principal amount of the funds until the investment matures. The certificates are partially insured by the Canadian government due to their guaranteed rate of return and low risk. They’re often purchased by people as retirement planning tools.
It is marketed as a GIC certificate in Canada and is comparable to American certificates of deposit.
Comprehending GIC Amount for Canada Study Visa
GICs allow you to deposit money into a bank and earn interest. The length of the commitment determines the interest rate, and the needed deposit period is set. Essentially, obtaining a GIC entails giving your money to the bank in exchange for interest.
GICs are thought to be secure investments since the financial companies that offer them are obligated by law to reimburse investors’ principal and interest. Even in the event that the bank collapses, investors are protected by the Canadian Deposit Insurance Corporation up to CAD 100,000.
How Does Banks Makes Margin from Guaranteed Investment Certificates?
The differential between a bank’s lending rate and its rate on GICs is what the banks make money on. The bank stands to gain by 3% if the mortgage interest rate is 8% and the GIC rate is 5%.
Because they yield a larger return than Treasury bills, GICs are an excellent option for diversifying a stream of liquid, safe securities in a portfolio. In Canada, a number of banks and trust companies provide GICs. Even though it does not control the assets of its clients, a reliable company may assert a certain amount of legal obligation to care for them. Then, trust corporations act as agents, fiduciaries, or trustees on behalf of an individual or organization.
They have a duty to safeguard the funds as custodians and only make investments that profit third parties.
Bonds that generate income include
- GICs are
- Treasury bonds
- T-notes
- T-bonds
These are excellent choices since they produce revenue streams, are usually liquid, and are safe. This is particularly valid for elderly investors, many of whom may be retired and without a steady source of income.
Summary on GIC Amount for Canada Study Visa
International students aspiring to study in Canada are required to obtain a GIC Amount for Canada Study Visa as proof of funds for one year, especially if they have applied under the Student Direct Stream (SDS) program. The GIC ensures that students have adequate financial resources to cover their living expenses in Canada.
The GIC amount for Canada study visa ranges from CAD 10,000 to 50,000, deposited with approved lenders listed by the Canadian embassy. Banks such as Scotiabank, ICICI Bank Canada, and SBI Canada offer GIC accounts for students. The GIC is typically non-redeemable for a minimum period of 12 months, and interest rates vary depending on the chosen program. GICs are a safe investment option and play a crucial role in diversifying investment portfolios for students and investors alike.
FAQs on GIC Amount for Canada Study Visa in 2024:
What is a GIC Amount, and why is it required for international students studying in Canada?
Answer: A GIC Amount, or Guaranteed Investment Certificate Amount, is necessary as proof of funds for one year for international students applying to study in Canada. It assures the Canadian government that students have enough money to cover their living expenses.
Is a GIC mandatory for all international students applying for a study visa in Canada?
Answer: Yes, a GIC is compulsory, especially for students applying under the SDS program, as it expedites visa processing and ensures financial stability during the study period.
What is the minimum and maximum amount required for a GIC for Canada study visa applicants?
Answer: The GIC amount for Canada ranges from CAD 10,000 to 50,000, varying depending on the student’s financial situation and the specific program chosen.
Which banks offer GIC accounts for Canada study visas, and what are the registration procedures?
Answer: Banks like Scotiabank, ICICI Bank Canada, and SBI Canada provide GIC accounts for students. The registration is typically done online, and specific documentation is required.
What is a non-redeemable GIC account, and how does it work?
Answer: A non-redeemable GIC account allows students to deposit funds for a fixed period and earn interest, with withdrawal options available after the maturity period.
What documents are needed to open a GIC account through Scotiabank for a Canada study visa?
Answer: Documents required include the Investment Directions Confirmation letter, study permit, passport, and university’s letter of enrollment.
How does opening a GIC account through SBI/ICICI Bank differ from Scotiabank’s process?
Answer: While the process is similar, differences may include documentation requirements and specific registration procedures for each bank.
What are the benefits of GICs for investors in Canada?
Answer: GICs offer a fixed rate of return and are considered safe investments due to partial insurance by the Canadian government, making them ideal for retirement planning.
How do banks profit from selling Guaranteed Investment Certificates (GICs)?
Answer: Banks profit from the difference between their lending rate and the rate offered on GICs, known as the interest rate spread.
Are GICs recommended for diversifying an investment portfolio?
Answer: Yes, GICs provide stability and diversification in investment portfolios, especially for older investors or those seeking safe investment options.
What role do trust corporations play in managing assets like GICs in Canada?
Answer: Trust corporations act as custodians, protecting clients’ assets such as GICs and ensuring that investments benefit the client.
Is there a government insurance scheme for GICs in Canada?
Answer: Yes, the Canadian Deposit Insurance Corporation covers investors up to CAD 100,000 in case of bank failure.
Can international students access their GIC funds before the maturity period?
Answer: Generally, GIC funds cannot be accessed before the maturity period, as they are locked in for a specified time.
What are some examples of income-producing bonds similar to GICs in Canada?
Answer: Treasury bonds, T-bills, and T-bonds are examples of income-producing bonds similar to GICs in Canada.
Where can prospective international students obtain more information about GIC certificates and the visa application process for Canada?
Answer: Prospective students can seek guidance from immigration consultants or reputable Canadian immigration services for assistance with GIC certificates and the visa application process.
