All of your GIC-related questions have now been resolved-IBRLive

by | Feb 21, 2024

GIC- The name “GIC” stands for “Guaranteed Investment Certificate,” and it refers to a short-term liquid investment that Canadian banks typically issue for up to a year. It is intended for Indian students who wish to enrol at universities that are part of the Student Partners Program (SPP) in Canada.

In this section, we are going to discuss how is GIC account beneficial for students as well as the key factors any Student who wishes to aspire abroad education must know about the term.


As we have discussed the deposit investment known as a guaranteed investment certificate (GIC) is offered by banks and trust organizations in Canada. Because of the low-risk fixed rate of return they offer and the fact that they are partially guaranteed by the Canadian government, people frequently buy them for retirement planning.


Benefits from a GIC account:

Low concern: Term deposits and GICs are typically regarded as low-risk investments that are secure since the principle is always guaranteed.

Assurance of growth: Your GIC investment will generate interest regardless of what happens in the markets.

Flexibility: There are a variety of term and interest rate choices. Either pick a cashable GIC that allows you to retrieve your money before the term expires or lock your money in to earn a greater interest rate.

simple to maintain: As relatively inexpensive and predictable and require little monitoring, they are simple to comprehend and maintain.

Savings Defense: If someone is truly interested in saving money for studying abroad, a savings protection GIC is a better alternative than a savings account.


Frequently Asked Questions:

  • How to open a student GIC account from India?

When opening a GIC account from India, it is important to ensure that the chosen financial institution participates in the program that meets the requirements for international students. Additionally, individuals should be prepared to provide the necessary documentation, such as a passport, study permit, and proof of funds, to complete the account opening process. 

You can create a GIC account online through ICICI bank by following the steps mentioned below:


  1. Visit the ICICI Bank Canada website and select the “Student GIC Program” option and click on New User Registration.


  1. Complete the online application form with all necessary personal and financial information.


  1. Upload scanned copies of your passport, study permit, and any other required documentation.


  1. Download the funding instruction page and share it with your bank to make the wire transfer. Please note that the payment can be sent through banks and other AD II companies.


  1. Once the funds have been received, ICICI Bank will issue a GIC certificate and email it to you.


  1. You can then use the GIC certificate to apply for your Canadian study permit.



  • GIC: Is it superior to a savings account?

In this instance, a GIC is a terrific solution for investing novices. Your money is secure since it is guaranteed, and the interest rates are frequently higher than those provided by high-interest savings accounts.



  • What is the GIC’s minimum & maximum amount?

The amount you can put into a GIC has no upper limit. The majority of GICs offer fixed interest rates for predetermined terms, such as half-yearly, a year, two years, or up to ten years. The minimum Guaranteed Investment Certificate (GIC) amount for Indian students applying for a Canadian study permit is currently CAD 10,000. 



  • When the minimum amount of GIC is CAD 10000, then why do we need to send CAD 10175 or CAD 10200? 

The reason for sending CAD 10,200 or CAD 10175 instead of the minimum required amount of CAD 10,000 for the Guaranteed Investment Certificate (GIC) program is to cover the transaction fees and other bank charges associated with the transfer of funds to Canada. After the deduction of transfer fees, the bank deposits the balance amount in your GIC account.



Best way to open a GIC account & making payments at the lowest exchange rate?

Students can open a GIC account through ICICI bank’s student GIC programs detailed above and it hardly takes 5 minutes to open a GIC account online. For making the payment you need to compare exchange rates and transaction charges offered by various institutions. The best way is to visit and contact them for making your payment at the best possible lowest exchange rate and transaction fees. They help you in opening the GIC account and sending your payment at affordable rates by saving you time and money.



  • GIC: Does it pay interest every month?

For GICs with durations of one year or more, interest is computed daily on the principal amount and is paid either monthly, yearly, or at maturity after compounding annually. For GICs with durations less than a year, interest is accrued daily and paid at maturity based on the principal.



  • Can my GIC account be broken before maturity?

The Guaranteed Investment Certificate (GIC) account for Indian students in Canada is open for a period of one year. The GIC account is a requirement of the Canadian government’s Student Direct Stream (SDS) program, which is available to international students from India, China, the Philippines, and Vietnam who are applying to study at a Designated Learning Institution (DLI) in Canada.

The funds in the GIC account are held for the duration of the student’s first year of study in Canada and are intended to help cover the student’s living expenses while studying in Canada.

After the first year, the funds from the GIC account can be withdrawn in instalments to help cover living expenses or other expenses related to their studies in Canada. It is important to note that the GIC account must remain open for the full one-year period as a requirement of the SDS program, and the funds cannot be accessed until the end of the one year.


Please feel free to contact us if your question is not answered here and you still have concerns. We promise to assist you as best we can.

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