Canada is one of the world’s top destinations for studying abroad. With many top universities situated in the country, Canada is one of the most in-demand countries for international students. Studying in Canada can be very rewarding as it allows you to experience a large variety of courses, as you live and study in a very diverse country.

If you're going to study in Canada, then you must apply for a GIC. A GIC or a Guaranteed Investment Certificate is a safe and secure investment that comes with very little risk. A GIC works like a savings account in a bank; you deposit money into it and earn interest on that money. The difference between a normal savings account and a GIC is that you need to leave your money in a GIC account for a specified period of time, before withdrawing it.

When you purchase a GIC, you make an agreement with the bank or the financial institution to lend your money for a specific period of time. In exchange, you will earn interest on your money and the longer this period of time, the more interest you will earn. At the end of the term, you will get the entire amount you deposited returned to you along with the interest you earned.

GIC for International Students

If you are an international student applying to universities in Canada under the Student Direct Stream (SDS), the GIC is a mandatory requirement. The minimum recommended amount for a GIC is CAD $10,000. All applicants must deposit this minimum amount to a GIC account while applying for the Student Direct Stream to study in Canada.

Having a GIC of at least CAD $10,000 CAD is a mandatory requirement from the Student Direct Scheme in Canada, in order to get the application process for your study permit expedited.

GICs can have many different benefits for international students. These include:

• As stated previously, GICs are a low-risk investment. The rate of interest is guaranteed and students will not have to worry about losing their principal investment. This makes it a perfect investment for international students.
• Once you reach Canada, you will have a guaranteed source of funds to help cover your educational and living expenses while studying here.
• One of the Canadian government’s requirements for a student visa is proof of funds to cover study and living expenses for at least one year. This GIC will act as an assurance to the Canadian government that you have sufficient funds to meet your living expenses in Canada for at least one year.
• GICs are highly liquid investments; that is, students can easily access these investments without any issues. Some GICs can be accessed before the end of the investment period with a penalty, while others require waiting till maturity.

Applying for a GIC

You can get a GIC from a financial institution listed on the Canadian Deposit Insurance Company website. Make sure the financial institution you choose offers a GIC and meets the criteria for the Student Direct Stream.

The bank that gives you the GIC must:

1. confirm that you bought a GIC by giving you 1 of the following:

• a letter of attestation
• a GIC certificate
• an Investment Directions Confirmation or
• An investment Balance Confirmation

2. hold the GIC in an investment account or a student account that you can’t access until you arrive in Canada

3. make you confirm your identity before they release any funds to you release the funds to you by providing:

• an initial lump sum once you identify yourself upon arrival in Canada
• the remainder of the funds in monthly or bi-monthly instalments over 10 to 12 months

The following financial institutions offer GICs that meet the criteria:

• Bank of Beijing
• Bank of China
• Bank of Montreal (BMO)
• Bank of Xian Co. Ltd.
• Canadian Imperial Bank of Commerce (CIBC)
• China Everbright Bank
• Desjardins
• Habib Canadian Bank
• HSBC Bank of Canada
• ICICI Bank
• Industrial and Commercial Bank of China
• RBC Royal Bank
• SBI Canada Bank
• Scotiabank
• Simplii Financial
• TD Canada Trust

Global Reach is partnered with ICICI Bank and can provide you with guidance when it comes to applying for a GIC.

To be eligible to apply for a GIC under the Student Direct Stream, you must be a legal resident of one of the following countries: Antigua and Barbuda, Brazil, China, Colombia, Costa Rica, India, Morocco, Pakistan, Peru, Philippines, Senegal, Saint Vincent and the Grenadines, Trinidad and Tobago, Vietnam.

Steps to apply for a GIC

Step 1: Locate the GIC portal on your bank’s website and log in

Step 2: Before submitting your application, ensure that you are reading the instructions very carefully.

Step 3: Fill out all your details; your name as per your passport; a current and valid phone number and email address

Step 4: After the step above, you will be logged into the application portal and will have to create your application. There will be a set of instructions there, please read those very carefully

Step 5: If you are applying with a referral code, there will be an option to enter that in your application

Step 6: Enter all your details as per your passport and ensure that you also enter the correct address

Step 7: Add a name for the transaction. Here, you should ensure that you enter the student name only, even in the case of a joint account

Step 8: Review your application carefully and go through it, making any changes if need be.

Step 9: Read the terms and conditions, disclosures and interest rates carefully before submitting

Step 10: Upload a copy of your passport onto the portal

Step 11: Submit

Step 12: You can check the approval status on the bank portal and if any changes are required, you will be sent a message

Step 13: Download your Wire Transfer details, and send them directly to the student's email address

Step 14: In Canada, visit the bank branch or the office of the Canada Post to get your GIC activated

Conclusion

While the process for applying for a GIC may seem quite daunting, Global Reach’s partnership with ICICI provides a simple, easy and stress-free application process for a GIC. With a GIC in hand, you are ready to commence your studies in Canada.

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