All you need to know about GIC account in Canada for Indian Students

Last Updated On: 16 Jan 2024

Canada is the hottest study abroad destination among Indian students now. 

The main reason for this being the easy immigration process to Canada, a friendly native population and government. 

Also after studying in Canada, there are plenty of job opportunities to pursue a prosperous career in a highly developed country. 

That being said, if you are a student aspiring to study in Canada, then you should be knowing everything about GIC Account. Especially what it is and how to send money to it from India.

So buckle up and get ready to know all that there is to know about GIC account in Canada.

What is a GIC account in Canada for International students?

GIC means Guaranteed Investment Certificate.

A GIC is an investment account.

There are many different types of GIC accounts but here we will be specifically speaking about GIC account for international students in Canada.

Students would have to deposit a fixed amount of money in this account (CAD 20,635 + CAD 200 = CAD 20,835). This account is offered by a Canadian Bank.

(Checkout Canadian Dollar rate in India Today)

This money is treated as proof of funds and would be released to the student every month for 12 months for their study abroad and maintenance expenses along with interest.

This is as per the rule of the Canadian government for students coming there to study through the Study Direct Stream (SDS) Program.

What is the Study Direct Stream Program?

There are 2 different ways of applying to Canadian Colleges;

1. Study Direct Stream Program (SDS)
2. General Application (College Wise) (Non-SDS)

Study Direct Stream is a program developed by the Canadian Government and the Association of Canadian Community Colleges (ACCC) for students from India, China, Morocco, Pakistan, the Philippines, Senegal or Vietnam. It is a replacement for the Student Partner Program (SPP) for Indian and Chinese students.

This program allows easy application to Canadian universities and visa processing.

Under this program, all the Universities in Canada which have been categorised as a Designated Learning Institution (DLI), have been roped in. The students applying under SDS have more choice of colleges (in the DLI network) and courses than General Applications.

When going through the General Applications route, A student first identifies a particular college and then a particular course and then applies for it.

Here, unlike in SDS, you have to make separate applications for each college. 

The eligibility criteria for SDS application is;

1. 50% of marks in the 12th grade, degree or diploma.
2. IELTS – Minimum band score 6.0
3. Medical Examination
4. Guaranteed Investment Certificate ($20,635 CAD)
5. Police Certificate

If a student is pursuing an education in Canada under SDS, a GIC account is mandatory. Only then will they get a study permit in Canada. 

How To Open a GIC Account?

Opening a GIC Account is a pretty simple process.

1. The first step is to choose the bank where you would like to have your Guaranteed Investment Certificate (GIC) Account. For deciding this you need to consider if the bank you choose has a wide network of branches and ATMs in Canada, especially in the region where you are going to stay.
   
   Open GIC Account in Canadian Banks via ExTravelMoney. Compare and select the best bank.
   
2. Most banks have an online process to Register a GIC account. Use that to complete and submit the application online. Your documents such as Passport Copy and/or Proof of Enrollment (if available) etc would be required.
   
3. You’ll receive your Account Number and the payment instructions by email. Transfer the funds via “Wire Transfer” to the GIC Account.
   
4. An Investment Balance Confirmation will be sent to you via email once funds are credited to your GIC Account. Using this document, you can apply for a Canadian Study Permit.
   
5. Finally, once you land in Canada, you must visit your bank branch where you hold GIC account for in-person verification. With this step, your GIC account would be activated.

Documents required for opening a GIC Account;

1. Passport Copy (first and last page) 
2. Copy of acceptance letter from Canadian University/College

How Does a GIC Account work?

Here we explain the working of a GIC Account in Canada;

1. A student aspiring to study in Canada through the SDS route opens a GIC account with one of the banks in Canada. Wire Transfer CA $20,835 to the account. $200 is fees.
   
2. After you arrive in Canada, CA $4,127 (Scotiabank) to $6,190.5 (CIBC Bank) will be transferred into your student bank account from your GIC account.
   
3. From the remaining amount in your GIC Account, you’ll receive a monthly sum of approximately CA $1,204 (CIBC Bank) to $1376 (Scotiabank) + any interest amount for 12 months. These funds are released to ensure you have sufficient money for your maintenance and study expenses in Canada.
   
4. After 12 months, you would have received your CA $20,635 back with interest.

How to send money to a GIC account in Canada from India?

There are two ways to do this;

1. Through your bank – Approach your bank in India where you hold a savings bank account. Place a request for “Money Transfer” to GIC Account abroad. Submit KYC document copies. Initiate fund transfer. But the exchange rate you have to pay is non-negotiable and fixed by your bank.
   
   Hint: Usually it’s way more than the rate you see in Google.
   
2. Through ExTravelMoney – We have tie-ups with both banks and RBI-licenced money changers. Compare exchange rates near you and choose the best rate. 100% of the time, you can find a better rate in our online portal. We have the same process as above but online.
   
   Check us out!
   
   Send Money To GIC Account In Canada From India – ExTravelMoney
   
   We facilitate money transfer to Canada from India for other purposes too.

GIC Account Opening Letter Sample

The GIC account opening letter contains the instructions from the bank to the student.

The list of instructions cover various points such as who can fund the GIC account, the minimum and maximum amount that can be sent, and what to expect after sending the funds etc.

Here is a sample below from CIBC Bank;

Frequently Asked Questions – GIC Account

1. When is the best time to open a GIC Account for studying in Canada?

After giving your IELTS exam, and applying for admission to a Canadian University/College and receiving Confirmation of Enrollment.

Before applying for a Canadian Study Permit.

The in-between time period is the best time to apply for a GIC Account in Canada.

2. Can ExTravelMoney transfer money to GIC account in Canada from India?

Yes, ExTravelMoney can transfer money from Indian bank account to GIC account in Canada.

We regularly facilitate such transactions for Indian students going to study abroad in Canada and are well versed with GIC Account transfers.

3. Is it possible to initiate the first transfer to a GIC/blocked account through ExTravelMoney?

When you receive an account opening letter for a GIC/blocked account there will be a clause given.

If it’s mentioned that the first transfer should be directly from the student’s account or that parents or 3rd party transfers are not allowed to transfer, then the transfer should happen from the student’s bank itself (even in such cases, we’d be able to help most of the times).

However, after the first transaction, we would be able to make a transfer to a GIC/Blocked account.

This varies according to the rules provided by the bank where you are having your GIC/blocked account.

4. What are the different banks for Indian students which offer GIC Account in Canada?

1. Bank of Montreal – GIC
2. HSBC Bank of Canada – GIC
3. Scotiabank – GIC
4. SBI Canada Bank – GIC
5. ICICI Bank Canada – GIC
6. Royal Bank of Canada – GIC

But before you choose a bank to open your GIC account with, check if they have ample branches in Canada, particularly where you are going. 

ICICI Bank, for example, has a very limited number of branches in Canada. 

After going to Canada, you’ll have to do verification from a bank branch closest to you. So make sure to choose a bank with plenty of branches and ample coverage across Canada.

5. Can we open a GIC Account in Canada from India itself?

Technically, we can’t open a GIC account in Canada from India.

Why?

Because GIC account is opened only after doing in-person verification at the bank in Canada.

But what you can do is apply for a GIC account in Canada from India.
The process can be done online or offline at Indian banks which have branches in Canada ( SBI, ICICI Bank)

6. Can we start a GIC Account in Canada online?

Yes, many banks provide the provision of applying for a GIC Account online.

Check out the links provided in question number 4 of the FAQ.

7. What are the minimum and maximum amount of money we can put in a GIC Account?

The minimum amount in a GIC account is CA$ 20,635 and $200 Processing Fee.

You can deposit more funds than the indicated CA$ 20,635 into your GIC Account.

The more money you put into your GIC account, the more payout you will receive each month to manage your expenses in Canada.

The maximum amount in a GIC account is CA$ 1,00,000.

8. How can we withdraw funds from a GIC Account?

After reaching Canada, do the in-person verification at the nearest branch of the GIC Account bank.

Then to utilise the funds of your GIC Account, open a bank account there.

Initially, CA $4,127 (Scotiabank) to $6,190.5 (CIBC Bank) will be released for your expenses in Canada.

Then every month $1,204 (CIBC Bank) to $1376 (Scotiabank) + interest amount will be deposited in your bank account from the GIC account.

Your bank account will have an ATM card or cheque book etc through which you can withdraw these funds for use in Canada.

9. What happens to the funds in my GIC Account if my Canadian Study Permit application is rejected?

Your Canadian Study Permit could get rejected for any number of reasons. It is unfortunate but sometimes it happens.

Whatever the reason, in such a circumstance, you can request a refund of the funds in your GIC account.

All of you have to do is prove any one of the following;

Your Canadian Study Permit/Visa has been cancelled or rejected.
The Canadian University/College that you applied to is no longer inviting you to study there.
You are not a student anymore at the Canadian University/College because you have withdrawn your application.

Get in touch with your GIC bank for the refund. It may take up to 4 weeks to get back the funds.

10. Can a third-party in India transfer or deposit funds into my GIC Account?

Yes, third party transfers to GIC accounts are possible from India. However, for a 3rd party to deposit funds into the GIC Account, prior authorization from the student must be submitted to the Bank.

Have any doubts?
Feel free to address in the comments below and we’ll get back to you as soon as possible!

Also Read: A-Z Guide To Indian Students For Canadian University Admissions

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