GIC Canada for Indian Students | Benefits, Amounts & More 2025

Are you getting ready to take your dream flight to Canada? But, stuck at the proof of funds that you need to show to get the Canada visa. However, you would get that visa if you knew about the Guaranteed Investment Certificate (GIC). This blog will help you learn about the type, process, and providers of the GICs. So, you don’t need to search “What is GIC Canada for international students?” ever again.

Latest Update: The minimum GIC amount for international students applying for a Canadian study visa in 2025 is CAD 20,635. This amount was increased from CAD 10,000 on January 1, 2024, due to rising living expenses and inflation.

What is a Guaranteed Investment Certificate?

A Guaranteed Investment Certificate (GIC) in Canada is a document that guarantees a return over a fixed period. This ensures that you will get an assured return on your principal amount after the term ends. This highlights the safety and reliability of students heading to Canada for studies. Many students consider it similar to saving accounts and Term Deposits however, it is different. Following are the differences between a regular savings account and a GIC:

Safety & Return:

Like your regular savings accounts where interest rates can fluctuate, GIC provides a fixed or variable interest rate over the term to ensure a predetermined return. 

Investment Term:

GIC can provide a flexible and higher interest rate for longer tenure however, for the visa you are required to have the GIC for at least a year. 

Financial Security:

GIC is insured by CAD 100,000 by the Canada Deposit Insurance Corporation (CDIC) therefore, making your investment more secure.

Importance of GIC for Indian Students in Canada

For Indian students, a GIC Canada is not just an investment but, also it is a mandatory document for the visa. The following are the reasons that make it an important document for the visa application:

Proof of Financial Support:

This GIC ensures that you have the financial capacity to sustain your stay during the duration of your stay. There are other proofs of funds that you need to prepare while getting other documents to study in Canada.

Living Expenses:

The amount that a student is required to invest in the GIC is equal to the one-year living expenses. This ensures that student has funds to support the one-year stay in Canada and this also prevents the early dropouts from the universities. 

Security & Stability:

The GIC allows a certain amount to be withdrawn every month hence, helps students adapt the Canadian life. However, this also gives the student security and time to concentrate on their education. 

Canadian Banking:

While opening the GIC account you get to know a lot about the Canadian banks hence, making you familiar with the system. This helps you get familiar with the formalities that might cause issues while opening a new bank account.

Types of GICs for Indian Students

There are three types of GIC that an Indian student can get, however, you can choose the type of GIC based on your study visa:

Non-Cashable GIC:

In this, the GIC is locked for a certain period just like your fixed deposit (FD). This GIC provides the highest return on investment. However, you can’t access the funds till they mature. 

Cashable GICs:

These GICs are not locked and can be withdrawn anytime based on the requirement. It is the best investment for Indian students as they can withdraw a certain amount with a monthly limit. 

Equity Linked GIC or Market Growth GICs:

This GIC offers returns as per the market growth. You will get the minimum guaranteed return and bonus based on the market performance. 

Eligibility for Canadian Guaranteed Investment Certificate

When you are applying for the GIC, you are required to follow some eligibility requirements:

• 
  Students must be permanent residents of the following countries such as India, China, Morocco, Pakistan, the Philippines, Brazil, Colombia, Senegal, Vietnam, Peru, Costa Rica, Antigua and Barbuda, Saint Vincent and the Grenadines, or Trinidad and Tobago.
• 
  An offer letter from the Designated Learning Institute.
• 
  English Language Tests like IELTS, TOEFL, and PTE with a minimum score of 6.0.

Requirements for the Guaranteed Investment Certificate

To apply for the GIC you are required to arrange some documents and funds which are mentioned below:

• 
  Personal Documents like PAN card, passport.
• 
  Immediate funds of CAD 20,635 which includes one-year living expenses. 
• 
  For Quebec, the GIC amount decreased to CAD 15,078 matching Quebec's living expenses.

How to Purchase a GIC for Study in Canada?

Indian students often purchase the GIC using the online portals which often leads them to frauds. Thus, you should know about the purchase process and the portals, where you can purchase the authentic GIC without much issue.

• 
  Visit the GIC page of different banks, such as ICICI Bank Canada and SBI Canada.
• 
  Register as a new user by filling in the requested information.
• 
  Activate your account and fill out the application form.
• 
  Receive an acknowledgment mail through the bank.
• 
  After verification, you will get an account credentials.
• 
  Now, you can deposit the GIC amount for Canada in the account.

You can go for other banks, credit unions, and trust companies offering GIC products. You can also make the purchase online, in person, or over the phone, with interest paid out at regular intervals or compounded and paid at maturity.

Also Read: GIC Refund Policy And Time

Top Banks to Offer GIC Canada in India

Selecting the right financial institution is crucial for opening a GIC account. Prominent banks offering GICs to international students include:

• 
  Scotiabank
• 
  SBI Canada
• 
  ICICI Bank Canada
• 
  Canadian Imperial Bank of Commerce

Each of these banks offers specific GIC products tailored for international students, ensuring competitive interest rates and easy online application processes.

Note: The above table provides a general comparison and is subject to change based on current bank policies and offers.

 How to Manage and Withdraw a GIC?

Managing and withdrawing your GIC account is key to ensuring financial stability in Canada. Here are some tips:

Withdrawal Rules:

Understand the conditions under which you can withdraw funds from your GIC, especially if you have a non-redeemable GIC.

Accessing funds:

Banks typically disburse living expenses from the GIC to the student's account in monthly or quarterly installments.

Disadvantage of Canadian Guaranteed Investment Certificate

GICs are important for the visa application process but, they also have considerable risks related to them. Knowing about these risks will help you make better financial decisions:

Low Interest Rates:

GICs offer the lowest return on the investment as compared to other investment options like mutual funds, and stocks. But, this also ensures that your principal amount is safe and you might not lose any money if the market is in degrowth. 

Lack of Liquidity:

Usually, GIC comes with a restriction in terms of time which implies that you cannot use the funds for that certain period. This might affect your financial capability for unforeseen reasons. 

Inflation Risk:

The inflation rate might increase but, that would not affect the interest rate on your saved amount. Hence, affecting the financial capability in the long run. 

Taxable Income:

GIC are considered under the taxable income thus, if you have fallen into the residency and tax bracket. You have to pay the revenues of your investment as the tax charges. 

Currency Risk:

The currency value of the home country affects your investment value so, ensure that you convert the home currency for better results.

Now, you know that “What is GIC amount in Canada for international students?” which might help you decrease the terror that you might experience during the application process. However, going through this process is also crucial and is mandatory to get a student visa.

But, we can make your daunting process a little easier by helping you with the pre-visa disbursement options. Just Check your eligibility with GyanDhan and connect with the lender that offers pre-visa disbursement, potentially smoothing the way for your GIC and, by extension, your journey to Canada. Don't let the finances hold you back and take a step closer to your abroad dream with GyanDhan.

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