Guaranteed Investment Certificate Canada is a type of investment that is very often undertaken by a Canadian and issued by trust firms, or banks. This investment assures a fixed return after a specified time period. Guaranteed Investment Certificate Canada definition is that it usually has a low return, because the investor is assured of the return. The investors do not take any risk for this type of investment. The candidates from countries like India, and China, applying for higher studies at a Designated Learning Institute (DLI) will have to deposit a Guaranteed Investment Certificate Canada. There is a certain Guaranteed Investment Certificate Canada rates which is around CAD 10,000 (INR 6,11,787). This is a part of the Student Partnership Program. This article will provide details on what is a Guaranteed Investment Certificate.

Importance of Guaranteed Investment Certificate Canada

GIC is a safe investment option, as it gives a fixed return after some period of time. It does not have any risk, so the investor can freely invest in Guaranteed Investment Certificate Canada. The candidates while joining top universities in Canada can opt for GIC.

Why Purchase a GIC

There are multiple reasons for why an international student should purchase a Guaranteed Investment Certificate TD. They are:

  • A GIC acts as a promise to the Canadian government, that the holder has a sound financial status to bear his living expenditure for a year in Canada.
  • When a person has Canada Guaranteed Investment Certificate, the application process for the Visa will be smooth, and speedy.
  • An Indian student, who wishes to be admitted to a Student Partnership Program college in Canada, must have a 6-month to 1-year GIC. The GIC should accompany by proper documentation of tuition payment.

How a GIC Works

Candidates might ask what is Guaranteed Investment Certificate Canada or how it works. Candidates can check SPP and non-SPP Visa Requirements. Candidates usually get Guaranteed Investment return every month in their account. The process of how to get GIC certificate for Canada is provided below.

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The candidates must not forget that the bank will need to verify their identity before they can take out any funds for their Guaranteed Investment Certificate Canada. Also, it is necessary to make sure that the candidate chooses either a student account or an investment account to hold the GIC. Candidates won't be able to access until they arrive in Canada.

Scotiabank Canada GIC Program

Scotiabank is one of the two biggest banks in Canada. Scotiabank is a part of the Student Partnership Program (SPP) which provides Guaranteed Investment Certificate Canada. The Scotiabank Student GIC Initiative (SSGP) is a unique program, that satisfies Express Entry Canada for immigration. Candidates are allowed to get a Canada Guaranteed Investment Certificate value of CAD 10,000 (INR 6,11,787) from Scotiabank.

Features Of The Scotiabank Student GIC Program (SSGP)

The main function of SSGP is to help international students to get a study permit and make educational plans, by covering their cost of living. The following list of SSGP's main characteristics includes:

  1. When the candidate reaches Canada, they get an added amount of CAD 2000 (INR 1,22,357) besides the interest accumulated in their GIC accounts.
  2. There is a provision for borrowing, where the students are allowed to borrow a part of the deposited amount along with the interest in the following 12 months, in order to cover the cost of living in Canada.
  3. CAD 200 (INR 12,235) needs to be paid for the Scotiabank Student GIC Program. All International students must pay this amount, and they will get the entire amount along with the interest at the end of a year.

SSGP Application Process

Candidates might want to know what is a Guaranteed Investment Certificate. The aspirants of SSGP must follow the below steps for applying for Guaranteed Investment Certificate Canada:

  • The international students must visit the official website of SSGP and fill it up carefully, then submit it.
  • A secure email ID will be obtained after submitting the form.
  • A second mail will be received which will have the information about the wire transfers and their Scotiabank Student GIC Program.
  • The candidates must send CAD 10200 (INR 6,24,022) to their Scotiabank Investment Account. This amount must be transacted from the student’s account. No transaction will be entertained from their guardian’s account.
  • Then the candidates will receive a confirmation mail, which can be used as proof while applying for a Guaranteed Investment Certificate Canada student visa.

Scotiabank GIC Account Activation

Before moving to Canada, international candidates must activate their Scotiabank account. The following documents are needed to activate the same:

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

On submitting these documents, the student will receive CAD 2000 (INR 1,22,357) in their Scotiabank GIC account along with the interest earned. If the study permit gets rejected, the candidate will get the security amount of CAD 10,000 (CAD 6,11,787) on a refund request.

ICICI Bank Canada GIC Program

ICICI Bank is the second largest bank in India that supports financially for those who wish to go to Canada to study. In order to earn some interest while studying in Canada, international students can apply for the Guaranteed Investment Certificate Canada. International students who wish to study in Canada through the SDS new student visa program can apply for the ICICI Bank Canada Student GIC Program (SDS). The ICICI Bank Canada GIC Program has the following characteristics:

  • ICICI Bank Canada GIC Program will give CAD 2000 (INR 1,22,357), plus the interest that has accumulated in their account.
  • The students will get a portion of the deposited money every month for one year.
  • The students are expected to spend this money on living expenses or cost of studying in Canada.
  • A $150 non-refundable fee must be paid by the international students.

ICICI Bank GIC Program Application Process

To apply for the ICICI Bank GIC program, international students must follow the following steps:

  • Visit the official website of ICICI Bank Canada and select the "Student GIC Program" tab.
  • Fill in with names, usernames, and email IDs.
  • A confirmation mail will be sent, the candidate must click on it to activate the link.
  • Wire transfers into an investment account. This transfer includes CAD 175 (INR 10,706), out of which, CAD 150 (INR 9,177) is the participation fee which is non-refundable, and CAD 2 (INR 122) is the associated bank fee.
  • Once the student transfers this amount, they will get another email with the investment balance via the secure mailbox,
  • This Investment Balance Confirmation along with the visa or study permit must be received at the Canadian Visa Office.

Guaranteed Investment Certificate Canada is a trusted source for candidates for monthly income. Candidates receive a confirmation by email to their personal email ID. There are two banks which provide Guaranteed Investment Certificate for Canada.

FAQs

Ques. What is GIC in Canada?

Ans. GIC is a short-term investment scheme provided to international students for a period of 1 year. It is recommended for students who decide to study in Canada under the SDS program, as there is no risk in this investment. A fixed amount of return is determined, at the time of investment.

Ques. Why is GIC needed?

Ans. GIC becomes very useful if he wants to earn some interest while doing his studies in Canada. It is needed to qualify students for a student visa to study in Canadian universities. It has become a mandatory requirement.

Ques. Are the fees of GIC refundable?

Ans. All paid fees including the processing fee are non-refundable.

Ques. What happens to GIC if the visa gets refused?

Ans. If the visa gets rejected, the bank will refund the amount available in the bank account of GIC, after deducting a stipulated amount.

Ques. How do GICs work?

Ans. When you buy a GIC, you deposit money with a financial institution and agree to leave it there for a certain period of time. The financial institution then invests your money and pays you interest on it. The interest rate you earn will depend on the maturity period of the GIC and the current market conditions.

Ques. Are GICs safe?

Ans. GICs are considered to be a safe investment because your principal investment is guaranteed by the Canada Deposit Insurance Corporation (CDIC). The CDIC insures all GICs up to $100,000 per depositor per financial institution.

Ques. Where can I buy a GIC?

Ans. GICs are available from most banks, credit unions, and other financial institutions in Canada. You can also buy GICs online.

Ques. How do I redeem a GIC?

Ans. To redeem a GIC, you simply contact the financial institution where you bought it and request a withdrawal. You will usually have to give them a few days' notice.

Ques. What are the fees associated with GICs?

Ans. There are typically no fees associated with buying or redeeming a GIC. However, some financial institutions may charge a processing fee.

Ques. What are the tax implications of GICs?

Ans. The interest earned on GICs is taxable income. You will need to report it on your tax return.

Ques. What are the pros and cons of GICs?

Ans. Pros are Guaranteed principal investment, Fixed interest rate, Low risk, Convenient. The Cons are Low interest rates, Lack of liquidity, Not suitable for long-term growth