What is a GIC in Canada... Everything About it
Aug 24, 2021 0
While Germany is popular for its Blocked Account, Canada has its norms. If you aspire to study abroad in Canada, familiarize yourself with a GIC. It is a mandate for most international students. So what is it and how will it affect you? Let’s find out.
What is a GIC in Canada?
GIC stands for Guaranteed Investment Certificate. It is an investment scheme for international students who want to study in Canada. It acts as a savings account where students deposit one years’ cost of living into a Canadian bank and get returns over that period. It is mandatory for those who plan to pursue any course under the Student Direct Scheme (SDS).
Do you require a GIC for a Canadian student visa?
Yes, GIC is a mandate to qualify for a Canadian student visa. An application without a GIC isn’t usually considered.
How to Open a GIC Account?
You need to open a GIC account at least a month before applying for a student visa. You can register online for a GIC account with any of the following three banks:
The ICICI Bank, Canada
Once your GIC login is ready, the bank will send you the investment account number and wire transfer details via email. You can then transfer the GIC amount via wire transfer (Remitout will assist you with the best Forex rates) to the respective bank account. The entire process may take approximately 10-12 days. Your bank will charge a service fee for the GIC service. The final amount given to the candidates includes this fee. So you have to transfer a minimum of 10,000 CAD + the bank fee. From this 2000 CAD will be given to you for initial set-up. The remaining 8000 CAD will be deposited into the investment account. You will receive approximately 667 CAD monthly + any interest to support your expenses. Once the banks receive the payment, you will receive a confirmation letter via email. You can submit this letter while applying for your student visa.
What Should You Do When You Reach Canada?
Once you reach Canada you have to visit the bank branch where you have opened the GIC account. You will have to carry some documents for the final verification and activation of the account.
Post this a personal deposit account will be created and the set-up amount of 2000 CAD will be transferred to this account. The remaining will be deposited in a non-redeemable GIC account. Once you exhaust the set-up money, you can withdraw the monthly allowance from the non-redeemable GIC account.
That majorly covers the definition of GIC and how it works. So if you aspire to study in Canada. Go ahead and start your application process. Remitout is here to support you with the best money transfer services.