How to open GIC Account and What is the process

How to open a GIC account and Transfer funds to GIC Account

For students, Canada is one of the most desirable locations due to its high educational standards and high quality of life. Canada's universities are among the greatest in the world, providing globally recognized education that is admired throughout the globe. A large number of international students migrate to Canada for higher education each year because of its vibrant cities, greater employment possibilities, scenic beauty, ethnic variety, and outstanding quality of life.

The cost of living and the fee you pay for education is comparatively lower than most countries that have the same infrastructure and features. The features said here are of world-class standards and have fulfilled many students' dreams. These features give you the freedom to research various domains which is part of your learning curve. It also allows you to work during your course time, thus making you financially independent even before you become a working professional. So, the first step to such a country starts with creating a GIC account in Canada.


What is a GIC Account and why is it required?

The Guaranteed Investment Certificate, or GIC, is an investment program that is suggested for overseas students who intend to study in Canada under the SDS (student direct stream) program. In order to be eligible for a student visa to start your studies in Canada, all overseas students must deposit one year's living costs into a Canadian bank. GIC accounts, as the name implies, are savings accounts that pay fixed returns to all qualifying applicants over a certain period. This is a must-to-follow procedure that all students must meet if they choose to pursue a course through the student direct stream. So how to open it?


How to Open a GIC Account

The first step is to decide which bank you want to open your Guaranteed Investment Certificate (GIC) account with. Consider if the bank you choose has a large network of branches and ATMs throughout Canada, particularly in the region where you will be staying. To open a GIC account, most banks offer an online registration process. Use it to fill out the application and submit it online. Your documentation, such as a copy of your passport, a government-issued ID card, and/or proof of enrollment, will be needed to create it successfully.

After that, you will be allotted an account number and other details will be shared with you. You will be asked to transfer the funds to that account through a wire transfer.

Once the transaction is completed and the account is credited with your funds, you will get a confirmation of the same. You can now use that confirmation to apply for the Canadian study permit.

You can activate the GIC account by visiting the bank where you have created the GIC account once you land in Canada to fulfill your invaluable dreams.


Required documents

As said earlier, you need to submit some documents to create a GIC account successfully. They are listed below

  • Passport
  • The letter of confirmation of enrollment from the university in which you are joining.

Different banks that offer GIC accounts in Canada for Indian Students

When it comes to opening a GIC account with a bank, you have got three options to select from. They are ICICI, Scotia Bank, and CIBC. Let's discuss them.


Scotia bank:

It's one of the biggest banks you can find in Canada with 1100+ branches and 4000+ ATMs across Canada. It makes it an ideal choice for any student who wishes to create a GIC account.

The next thing is, you can deposit nearly CAD 50000 in one, go here. This is a useful option for students who desire to invest a large sum of money in their GIC. CAD 50,000 may easily last for two to three years, and moving such a huge sum has one advantage. Every year, the exchange rate of the Indian rupee against currencies such as the Canadian dollar, the United States dollar, and the Australian dollar rises. As a result, moving a large sum of money at once can save a lot of money.

The cons here are very high processing fees and a very strict application process which makes the success rate comparatively low since the slightest error can delay or cancel the whole process.


CIBC:

Another prominent bank in Canada that provides a GIC program to Indian students is the Canadian Imperial Bank of Commerce. They are especially well-known for their expedited application processing, lower application fees, and greater approval rates. You may also receive a Student Credit Card with no annual fees and loads of rewards and travel incentives when you create a student account with them.

 The cons here are the higher exchange rates which will reduce the value of money and the number of pay-out installments. While all banks provide 12 pay-out installments, CIBC offers 8 pay-out installments, with the period between payouts as 45 days.


ICICI:

The first thing to say here is that it is different from the ICICI bank in India. Though, both are part of the same organization. 

Since it is a known name among the students, most of them prefer to open an account with them. But it has to be noted that the whole process is the same for all irrespective of the banks.

With ICICI you get to have access to their mobile app, which makes the task of payments easier.

The cons here are, though they have tie-ups with the Canada Post and are accessible from 6000+ locations, they have only 7 branches in Canada. This comes as an issue when you have to travel to a branch to solve any payment issues or any banking needs.


Comparison sheet of the best bank to open GIC account
CIBC Scotia Bank ICICI
GIC application fee 150 200 150
Account opening time 2-4 days 2-4 days 10 days
Number of branches in Canada 1200 1100+ 7

How does GIC Account Work and How to send money to a GIC Account from India?

Let us explain it to you,

A student who wishes to study in Canada under the SDS program creates a GIC account with one of Canada's banks. Make a wire transfer to the account in the amount of CAD$10,200. The fees are $200.

From your GIC account, 2000 CA$ will be deposited to your student bank account once you arrive in Canada.

For the next 12 months, you'll get a monthly payment of around 667 CA$ plus any interest earned on the remaining 8000 CA$ in your GIC Account. These funds are distributed to guarantee that you have enough money to cover your living and study costs while in Canada.

You will receive your $10,000 CA$ back with interest after 12 months.

You can send money from India to a GIC account in two ways.


Sending Money to GIC Account through Bank

Almost all banks make GIC payments to Canada so, you would only need to visit the bank branch in which you have a savings account and then request the service you are in need. They will initiate the process and you will be asked to submit the required documents like the passport and the enrolment form issued by the university. Once they are verified, you will then be asked to make the payments. Though they assist you at all times, the exchange rate would be expensive and thus you will be losing some money here and there till you complete the process.


Sending Money to GIC Account through Orient Exchange

The next option through which you can make payment to a GIC account in Canada is the money changers or the forex dealers. Since we do money transfers to Canada from India regularly, we have a better understanding of the market. We have experts who keep track of the exchange rates to give you the best rates in the market. You can search for the Canadian dollar rate for today and then compare it with the rates provided by us to believe in our best services. Since our primary area of focus is a forex, we provide some discounts on fees and exchange rates that will gift you with some extra cash at the end of the day. And the most notable part is that we provide online services enabling you to send and make payments right from your home.

Once you have opted for the way and have created a GIC account successfully, you will then have to visit the bank to create a Canada student account. It will be linked with the GIC account and thus the amount will be credited to the student account at regular intervals to cover the living expenses while you are in Canada.


FAQ

A Guaranteed Investment Certificate (GIC) is a type of investment account. A Canadian bank provides this account. There are several various sorts of GIC accounts, and one of them is a GIC account for overseas students in Canada.

This account would require students to deposit a set amount of money. This money is used as evidence of funds, and it will be released to the student every month for the next 12 months to cover their study abroad and living expenses, with interest.

Choose the bank in which you have to create the GIC account and then fill in their registration form. Submit the documents that you are asked to verify. Once the account is created you will be given the details of the account to which you have to transfer the funds.

The minimum amount is 10000 Canadian dollars and the maximum will be 50000 Canadian dollars.

You need to create a Canada student account after reaching Canada. First, a sum of $2000 will be given from the GIC account for your expenses in Canada, and then the rest will be given out at regular intervals at a fixed amount based on the amount deposited.