A Guaranteed Investment Certificate account, or GIC, is a type of investment account in Canada. There are multiple types of GIC accounts, including some specifically targeting sub-demographics, such as international students. Opening a GIC account is similar to opening a general bank account in Canada.
A GIC, or Guaranteed Investment Certificate, is a type of Canadian investment account with a guaranteed rate of return for a fixed period. A GIC is often recommended to overseas students intending to study in Canada under the Student Direct Stream program, or SDS. As an international student, you must deposit at least one year’s living expenses into a Canadian bank before coming to Canada and qualifying for a student visa. A GIC, in this respect, fulfills this requirement.
Some documents are required to verify and confirm your identity and explain why you are opening a Guaranteed Investment Certificate account.
How GIC Works
Many banks offer GICs. To choose where to open yours, consider a bank with the widest network of branches Canada-wide and plentiful ATMs to ensure easy access to funds deposited into your GIC.
A GIC account works by wirelessly transferring to the GIC account in Canada. Then, those funds are deposited into your bank account in Canada. You receive the funds plus interest every month for 12 months. These funds are designed to provide sufficient support to live and study and cover expenses in Canada during an extended stay. After 12 months, you will have received the full extent of your GIC investment and interest.
Many banks, though not all, allow you to register for a GIC account online. To do this, however, you must have certain documents in a digital format prepared. Alternatively, you can also get in touch with some credit unions in Ontario for help.
Documents Required for a GIC Account
For a GIC account, a copy of your passport is required to verify your identity and background. For students seeking to open a GIC account they will be required to submit Proof of Enrollment. Proof of Enrollment can be a copy of an acceptance letter from an accredited Canadian university or college. These are the only two documents required for a GIC account.
How to Add Funds to a GIC Account
To add funds to a Guaranteed Investment Certificate account, this is done by wire transfer from your present bank abroad.
The minimum required amount of money to put in a GIC is CAD 10,000 and a $200 processing fee. If you do not have this minimum amount, you cannot open a GIC. You can put more money into a GIC, of course, and doing so will mean you receive a higher monthly payout, which can be extremely beneficial if you have high living expenses in Canada. Please note the maximum amount a GIC can hold is CAD 100,000.
Opening a GIC Account
Many international students and travellers set up a GIC account long before they arrive in Canada to ensure that they have funds waiting for them when they first set foot on Canadian soil. As so much is done online, before you can access funds you’ve deposited into a GIC, you must visit the bank branch where you hold the GIC for in-person verification. This verification is required before the GIC account is activated and the funds are released and ready for use.
For some international students, their study permit in Canada is rejected. It happens, and it can happen for several reasons. If this has occurred after you have applied to open a GIC account online, you can request a refund of the funds in your GIC account by proving that a) your Canadian study permit is cancelled or has been rejected; b) the Canadian university or college you applied to is no longer accepting you to study there; or c) you have withdrawn your application be a student at the Canadian university or college in question.
How to Withdraw Money from a GIC
To withdraw money from a GIC account, you need to open a bank account in Canada at the same branch as your GIC. This bank account has an ATM or debit card that can be used to access the funds that are added to it. The GIC can gradually release money into that bank account in Canadian currency at set intervals.
No, you cannot access all of your GIC funds at once. They are set to be released at set intervals. This is the type of savings account that a Guaranteed Investment Certificate account is, which cannot be altered.
