Canada has consistently been one of the top study-abroad destinations for international students and the reasons are abundant. With the best universities and courses, a safe and vibrant environment, and most importantly an easy and friendly immigration process, the country is a haven for aspiring students. Canada provides abundant opportunities to students worldwide. If you are aspiring to study in Canada as an international student, you might have heard about GIC Account and found yourself confused about its details. No worries, this blog will help you to know clearly about Myths around GIC remittances in Canada.
What is a GIC Account?
GIC stands for Guaranteed Investment Account, it is a fixed account for students who have chosen Canada as their study destination. Although there are different types of GIC Accounts, in this blog, we will talk about only GIC Accounts for international students who invest their money into Canadian banks for their academic costs in Canada. The money is deposited in fixed amounts by the students in the account. The Canadian banks take CAD 200 (INR 12,303) as depositing fees. For example, if you deposit CAD 10,200 (INR 6.27 Lakh) in your GIC Account, you will have CAD 10,000 (INR 6.15 Lakh) in your account. This money which is deposited into the account of Canadian banks is considered as proof of funds. The money from the account is released every month for 12 months for students’ study abroad and other maintenance expenses along with interest. There are particular Canadian banks like ICICI Bank, Nova Scotia and Canada Imperial Bank, where a student can open the GIC Account.
Must Read: Canada Work Permit
Purpose of GIC Remittance in Canada
The following are the reasons to open a GIC account:
- To make students’ financial journey easy and accessible without causing much hassle to international students in a completely unknown country.
- Student expenses and university costs can be easily handled by opening GIC Accounts.
- Safe transfer of money under Canadian bank authorities’ surveillance which is handed to bank holders monthly to take care of their expenses.
- No need to rush to banks after landing in Canada, your account with money is already accessible to you.
How to Open a GIC Account?
Although each bank has its own application process, some of the steps are very similar among all the banks, which can be summarized as follows:
- The first step is to choose the bank where you would like to open your GIC Account. You must look for details while choosing the bank, like if your chosen bank has a wide network of branches and ATMs in Canada, especially around your place of stay or college.
- Most of the banks ask for online registration to register a GIC Account. Create your GIC Account after submitting all the required details. The banks would mandatorily ask for two documents:
- After submitting the application form, the account number and payment instruction will be provided to you through your email. You can now transfer the amount via Wire Transfer to your newly formed GIC Account.
- An email confirming your investment balance will be sent to you after the amount gets transferred to your GIC Account. This confirmation document can be used by students to apply for the Canadian Student Permit program.
- After you arrive in Canada, you must visit your chosen bank branch and complete the in-person verification process to finally activate your GIC Account.
Documents Necessary for GIC Remittance in Canada
There are some mandatory documents which you must have while creating your Canada GIC Account, which is as follows:
- Student Passport copy
- Offer letter from the university/ college
- GIC letter including amount and bank details
- Student PAN card copy
Also Read: Study in Canada without IELTS
Myths Around GIC Remittance in Canada
As the process of studying abroad is seemingly tedious if you do not have the right person to guide you through, students and guardians often have some confusion and wrong information around the process, including the account registration in a foreign bank, and other things, which makes the path more difficult.
There are some popular myths around GIC Remittance in Canada which make the abroad dream to Canadian universities sloppy. Some of the popular myths around GIC remittance in Canada are:
GIC Remittance in Canada is a delayed process.
No, once you get your account opening confirmation letter from the Canadian bank, you can start depositing money in your account within 48 hours.
GIC Remittance in Canada by students gets costly.
It depends on different rates charged by banks or other Authorized Dealer II (AD II). You can compare different rates and find the best suited for your Remittance program
Only Banks can provide outward remittance to your GIC Account
No, it is not very specific. Banks are generally preferred for outward remittance but AD II can also be relied on for outward remittances. You have to check carefully while involving AD II players for your Remittances.
Only Indian students can avail of the GIC Remittance program offered by the Canadian government
No, other countries’ students are also allowed to create their GIC Accounts for their study in Canada. The other countries are China, the Philippines, Morocco, Vietnam and Senegal.
No third party can deposit the amount in your GIC Remittance Account
This is not true. After submitting prior authorization from the Student to your GIC Account bank in Canada, a third party can also deposit money into your account. But prior authorization from the account holder is mandatory.
Also Read: Canada Visa Types
How Can You Withdraw Money from Your GIC Account in Canada?
After completing the following steps, you can start withdrawing money from your GIC Account
- As soon as you land in Canada, go to the bank’s branch where you have opened your GIC Remittance account and complete the in-person verification process, to finally activate your GIC account.
- Open one account in the same bank where the money from your GIC Remittance Account will be transferred to your new account in Canada.
- Complete other formalities as required by the bank in Canada.
- Initially, a sum of CAD 2,000 (INR 1.23 Lakh) will be released by your GIC Account to your new account for your expenses there.
- For your money deposited in your GIC Account, every month you will get an interest amount transferred to your other bank account.
- The bank will provide you with an ATM or chequebook to withdraw money from your account.
FAQs
The fund in your GIC Account is refundable, if your student visa gets rejected or if you willingly cancel the course. But the bank as a penalty will deduct the application fee.
Once you receive the acceptance letter or enrollment confirmation, you can open a GIC Account for yourself. You better create an account before applying for a Canadian Study Permit.
The minimum sum is CAD 10,000 (INR 6.15 Lakh) plus CAD 200 (INR 12,303) as a processing fee charged by banks. So the total minimum amount to be deposited in your GIC Account is CAD 10,200 (INR 6.27 Lakh). The maximum amount that can be deposited in your GIC Account is CA$ 1,00,000 (INR 61.53 Lakh).
This was everything around Myths around GIC Canada. As we all know, students often face difficulties in carving their career paths and are often confused about their abroad journey as students. If you want someone to help you get through the process swiftly and without losing out on the best universities, you can reach us at 1800 57 2000 and contact our Leverage Edu experts for your Study Abroad dreams. Also, you can find a lot of finance-related information on Fly. Finance
