What is the full form of GIC

GIC: Guaranteed Investment Certificate

GIC Stands for Guaranteed Investment Certificate. A Canadian investment known as a guaranteed investment certificate, which is most frequently issued by trust firms or banks, promises a guaranteed rate of return over a set period. The return is typically lower than that of other investments like equities, bonds, or mutual funds because of its low-risk profile.

International students from China and India who are applying for admission to a Designated Learning Institute (DLI) have to deposit a Guaranteed Investment Certificate (GIC) to their Canadian accounts as part of the Student Partnership Program (SPP).

The following details are about GIC:

1. Every year, students must have a GIC worth at least $10,000 to cover their living expenses (excluding tuition fees)
2. Opening a GIC account is also encouraged for students applying for admission without SPP.
3. For international students, GIC is offered in cashable/redeemable and non-cashable GIC.
4. In the scenario of cashable or redeemable GICs, students can get back their money at any time without incurring any fees.
5. In the scenario of non-cashable GICs, students are not allowed to request their money back at any point without incurring a fee.
6. The deposit directly affects the GIC interest rate. The interest rate increases with the length of the warranty.
7. For the next 12 months, students can receive interest on a portion of the deposited funds each month.
8. At the end of the college year, the student will receive the total amount of the deposit with the interest amount.

Importance Of GIC For International Students

The total deposit amount with interest that is pre-decided for the period of the deposit is guaranteed by GICs, making them a safe investment option.

Following are some justifications for purchasing a Guaranteed Investment Certificate (GIC).

1. A GIC is a promise to the Canadian government that the holder has enough money to cover living expenses for a year in Canada.
2. GIC is required for the Canadian visa application procedure and facilitates simple and speedy processing of visa/study permit applications.
3. A GIC for six months to ten years is required of Indian students who wish to enroll at SPP colleges in Canada, along with documentation of tuition payment.

List Of Banks That Provide GIC

All banks that provide GICs are listed on the Canadian Deposit Insurance Company website.

The following are several financial organizations that offer GICs:

1. Canadian Imperial Bank of Commerce (CIBC),
2. Bank of Xian Co. Ltd.,
3. Bank of Beijing,
4. Bank of China,
5. Bank of Montreal (BMO),
6. DesjardinsFootnote1,
7. Habib Canadian Bank,
8. HSBC Bank of Canada,
9. ICICI Bank,
10. Industrial and Commercial Bank of China,
11. RBC Royal Bank,
12. SBI Canada Bank,
13. Scotiabank, Sympli Financial,
14. TD Canada Trust

Criteria For Banks That Offer Guaranteed Investment Certificate (GIC)

The bank that issues you the GIC needs to meet the following requirements:

These are the following documents provided by the bank must attest to your purchase of a GIC:

1. An investment balance confirmation,
2. An investment direction confirmation,
3. A letter of attestation,
4. A GIC certificate

The bank must authenticate your identity before releasing any money. The GIC should be held in one of two accounts-either a student account or an investment account-that you cannot touch until you arrive in Canada.

The bank must release the money in the following way-

1. The initial lump sum payment after entering Canada and identifying oneself
2. The remaining money will be distributed in10 to 12 months.

Scotiabank Canada GIC Program

One of Canada's two banks and one of the biggest banks, Scotiabank, is a participant in the Student Partnership Program (SPP). For international students, the Scotiabank Student GIC Initiative (SSGP) is a unique program that satisfies Citizenship and Immigration Canada standards. Students can also acquire GICs from Scotiabank valued at $10,000.

Features Of The Scotiabank Student GIC Program (SSGP)

The Scotiabank Student GIC Program (SSGP) assists overseas students in obtaining a study permit and making educational plans by covering living expenses.

The following list of SSGP's main characteristics includes:

1. Upon arrival in Canada, students get $2,000 in addition to the interest accumulated in their accounts.
2. Students can borrow a portion of the total deposited amount plus interest each month for the following 12 months to cover living expenses while studying in Canada.
3. International students must pay $200 fees for the Scotiabank Student GIC Program. At the end of a year, students will get the total amount placed as well as the interest amount (SSGP)

SSGP Application Process

On Scotiabank's official website, international students can obtain the SSGP application form online. Before submitting the application form, the students are requested to go through the applicable disclosure statement's terms and conditions very carefully. Following are the details of the SSGP application procedure:

1. International students must complete and submit the SSGP application form online.
2. The students will obtain a secure email ID after submitting the form successfully, which they can use to access Scotiabank Secure Email Service.
3. The application is processed immediately, and the students receive a second secure email, including information about wire transfers and their Scotiabank Investment Account number.
4. Students are requested to send $10,200 to Scotiabank for their Scotiabank Investment Account. Included in this are $200 in program Fees.
5. The money must be sent from the student's bank account in their native nation. Third-party cash transfers from a parent or other charges will be declined into Scotia Bank.
6. The student will receive an email titled "Investment Directions Confirmation" upon successfully transferring the funds, which could take up to 5 business days. This Confirmation can be used as evidence when requesting a Canadian student visa.

Scotiabank GIC Account Activation

When moving to Canada, international students must activate their Scotiabank GIC accounts. The students should schedule an appointment to open a personal deposit account using their identity at any Scotiabank location.

The following is the list of paperwork required to start a personal deposit account:

1. Letter of Enrolment from a Canadian Educational Institution (or a student ID card)
2. Study Permit
3. Valid Passport
4. Investment Directions Confirmation
5. Welcome Letter

The student's account will receive a deposit from their Scotia Investment Account for $2,000 plus any interest earned.

The entire $10,000 investment will be returned to the student by Scotia Bank if the study permit is rejected or declined for any reason. It can take up to 4 weeks for the students to receive their security after processing the refund request.

ICICI Bank Canada GIC Program

ICICI bank is the second largest bank in India that provide financial support. To get a percentage of their investment and interest for the following twelve months while studying in Canada, international students who want to learn in Canada under SPP can apply for a GIC account at ICICI Bank Canada.

Features of the ICICI Bank Canada GIC Program

For international students who want to study in Canada via the Student Direct Stream, there is the ICICI Bank Canada Student GIC Program (SDS).

Following are the main characteristics of the ICICI Bank Canada GIC Program:

1. Upon arriving in Canada, students receive $2,000 plus any interest accumulated in their accounts.
2. In addition to interest, the students will get a portion of the total deposited money each month for the following 12 months until they have received the entire sum deposited.
3. You can spend this money to cover your living expenses in Canada.
4. For the ICICI Student GIC program, international students must pay a $150 non-refundable participation fee.

ICICI Bank GIC Program Application Process

On the official ICICI Bank Canada website, international students must first register for the ICICI Bank GIC Program.

The following details the application procedure for the ICICI Bank Canada GIC Program:

1. To register for this specific program, the applicant has to go to the official ICICI Bank Canada website and select the "Student GIC Program" tab.
2. To complete the registration process, the applicant must submit their name, username, and email address.
3. Once done, the applicant will receive a confirmation email with the activation link.
4. The applicant must click the activation link to complete their registration.
5. Wire transfers into an investment account. This includes a $150 participation fee and $25 to cover any associated bank fees. Once the funds are received, the students will get an email with the investment balance via the secure mailbox.
6. The Canadian Visa office in India must receive this Investment Balance Confirmation with the visa or study permit application.