What is GIC in Canada?

What is GIC in Canada? GIC stands for Guaranteed Investment Certificate. In the context of Canada, a GIC is a financial product that is offered by Canadian banks as a way for international students to prove they have sufficient funds to support themselves during their studies in Canada.

As part of the Canadian study permit application process, international students are required to demonstrate that they have enough money to cover their tuition fees and living expenses while studying in Canada. One way to do this is by purchasing a GIC from a participating Canadian financial institution, which guarantees a certain amount of money will be available to the student each month for a specified period of time (usually 10 months).

The GIC amount  for Canada varies depending on the institution and the location of study, however as per the latest update the new update GIC amount is CAD 20,635. The funds from the Canada GIC amount can be used to cover living expenses such as accommodation, food, transportation, and other expenses associated with studying in Canada.

The GIC account Canada program is designed to ensure that international students have enough funds to support themselves during their stay in Canada and helps to reduce the financial burden on their families back home.

Steps Involved to Open a GIC account in Canada?

It is a very simple process to open a GIC account in Canada for Indian students. The various steps involved are:

• Choosing Authorized Bank: You need to wisely choose an authorized bank  to open a GIC account in Canada.

• Submitting Application Online: Once you are done with the process you need to submit  the GIC programme application online. In addition you need to upload your passport copy and the documents of the admission letter.

• Deposit Amount: You need to deposit a amount of CAD $20,635 amount along with the processing fee of CAD 150 to CAD 200.
• In the last you receive your investment balance confirmation and certificate of investment.

In conclusion every international student in Canada must deposit their expenses for up to one year in a Canadian Bank to qualify for a student visa. Indian students in Canada need not submit any other additional financial documents to Immigration, Refugees and Citizenship Canada (IRCC) – the department of the Government of Canada, as proof of their currency that covers their living expenses.

Challenges Faced for GIC in Canada

The various challenges faced by International students in Canada when investing in GIC are:

1. Limited access: Some GIC providers may require Canadian citizenship or permanent residency status, which could limit access for international students.
2. Higher deposit requirements: Some GIC providers may require higher deposit amounts for international students, which can be a challenge for those on a tight budget.
3. Currency exchange rates: International students who have applied for GIC may be subject to currency exchange rates when depositing and withdrawing funds, which could impact their overall returns.
4. Limited knowledge: Since there are many International students who apply for GIC, many Indians have limited knowledge of the Canadian investment landscape and regulations, which could make it challenging for them to make informed investment decisions.
5. Short-term investment horizon: GICs typically require a fixed investment horizon, which may not align with the short-term needs of international students who may have to return to their home country after completing their studies.
6. Limited flexibility: Once the funds are deposited, GICs typically offer limited flexibility for withdrawals or early termination, which could be a challenge for international students who may need the funds for unexpected expenses.

GIC Vs Other Investment Options

For all the international students the choice between GICs and other investment option may depend upon several factors such as their financial situation, investment goals, and residency status, etc. Here are some factors to consider:

1. Resident Status: International students in Canada may have limited investment options, as some investment products may only be available to Canadian residents or citizens. GICs are a popular investment option for international students, as they are available to non-residents and can be opened easily at a Canadian bank or credit union.
2. Low Risk Tolerance: GICs are investments of low risk tolerance while there are many other investment options like stocks and mutual funds which are high risk and high return options. If you want a steady return on your investment, GICs are a better option.
3. Investment timeline: International students may have a shorter investment timeline due to the temporary nature of their stay in Canada. GICs are a good option for short-term investments, typically ranging from 30 days to 5 years.

Apart from GIC being a popular investment option for international students in Canada, it is important for students to consider their individual investment goals and consult with a financial advisor before making any financial decisions. In addition to this it is compulsory for Indian students applying for a Canadian visa to get their GIC beforehand.

Conclusion

In conclusion, a Guaranteed Investment Certificate (GIC) is a low-risk investment option offered by Canadian financial institutions such as banks and credit unions. It is a type of investment where an investor deposits a certain amount of money for a fixed period of time, usually ranging from 30 days to 5 years. In return, the financial institution guarantees a fixed rate of interest for the term of the investment. GICs are a popular investment option for individuals who want to earn a guaranteed return on their savings without taking on significant investment risk. They are especially attractive to international students in Canada as they are low-risk, easy to open, and available to non-residents. When choosing between GICs and other investment options, it is important to consider factors such as risk, return, liquidity, and investment timeline based on individual investment goals and risk tolerance. It is recommended to consult with a financial advisor to determine the best investment options for one’s personal situation.

FAQ’s

How to pay GIC Canada from India?

There are a number of financial institutions in India which provide GIC for Canada from India. You can verify the trusted list of GIC providers for Canada through Global Opportunities by calling on +91 8282828215.

What is the GIC amount in Canada for international students?

The GIC amount required for Indian students in Canada varies depending on the financial institution and the educational program. Generally, the GIC requirement for Indian students in Canada is CAD $20,635 or Rs 1269977.69. This amount is held in a GIC account for the duration of the student’s stay in Canada, and is intended to cover living expenses and other costs.

Which bank is best for GIC in Canada?

There are many financial institutions providing GIC in Canada for International students. Some of these banks are Scotibank, ICICI Bank, CIBC, RBC and TD bank, etc. It is very important to compare rates, terms and features of each institution to find the best fit for your individual needs and preferences. It’s also recommended to consult with a financial advisor to ensure that you make an informed decision.

What does GIC stand for?

GIC stands for Guaranteed Investment Certificate. In the context of Canada, it is a financial product offered by Canadian banks, commonly used by international students to prove they have sufficient funds to support themselves during their studies in Canada.