GIC Requirement for Canada Student Visa 2024

Sanjay Yadav
[Published 23 Jan, 2024 | 12:59 PM]
About Author - 6 min read
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International students who are planning to study in Canada need to obtain a student visa. One of the mandatory requirements they need to fulfill is to get a Guaranteed Investment Certificate (GIC).

A GIC is a financial product that banks and other financial institutions offer to international students in Canada. It serves as evidence that students have sufficient funds to cover living expenses in Canada. A certain amount of money is deposited into the GIC account through the RBC International Student GIC Program, and in return, you get fixed monthly payments for a specific time.

Revised Cost-of-Living Requirements for International Students:

The financial requirements for international students in Canada do not align with the cost of living, causing students to fall short of their expected funds. To address this matter, the IRCC will annually revise the cost-of-living requirement, aligning it with the updates to Statistics Canada's Low-Income Cut-off (LICO).

Starting January 01, 2024, the cost-of-living requirement for a single Study Visa applicant will be $20,635 (75% of LICO) - in addition to the first-year tuition fee and travel costs. The updated pricing is more than twice the existing cost-of-living requirement of $10,000.

This adjustment aims to address the evolving financial landscape and prevent student vulnerability, as emphasized by the Minister of IRCC. The IRCC has implemented specific directives for Canada's Student Direct Stream (SDS) to speed up the processing of Canada Study Visas for residents of 14 countries.

Go through this comprehensive guide to learn more about the GIC for Canada student visa applicants in 2024, exploring its application process, benefits, and other details.

How does the GIC work?

To get your Guaranteed Investment Certificate (GIC), you need to make a short-term investment with a Canadian bank, usually for up to a year. The investment amount is CAD 20,635, and you can access these funds only once you're in Canada.

This investment is meant to cover your living expenses during your first year in Canada. The funds are released to you every month or every two months after confirming your identity for the initial 12 months.

The bank from which you purchase your GIC must provide one of the following documents:

• A GIC certificate
• A letter of attestation
• A confirmation of Investment Balance
• A confirmation of Investment Directions

How to Open a GIC Account?

To open a Guaranteed Investment Certificate (GIC) account for Canada Student Visa 2024, follow these steps:

Step 1: Choosing a Participating Financial Institution

Now, you cannot purchase your GIC at any bank available. You must research and select a Canadian bank or financial institution that offers GICs. It is a good idea to stick to the Indian banks approved to provide GIC for Canada 2024, which include Scotiabank, ICICI Bank Canada, and SBI Canada Bank.

Step 2: Understanding GIC Terms and Conditions

You must explore the terms, conditions, and interest rates offered by different banks. Also, be aware of the maturity period, typically 12 months, during which funds cannot be withdrawn.

Step 3: Opening a GIC Account

Contact the financial institution you chose to start your GIC application process. Provide your important documents like a letter of acceptance from a designated learning institution.

Step 4: Depositing Funds

It is time to deposit the required amount into the GIC account, which has been updated to $20,635. Confirm the lock-in period and understand the terms for interest payments. 

Step 5: Receiving the GIC Certificate

Once the Guaranteed Investment Certificate (GIC) account is funded, the financial institution will issue a GIC certificate - a crucial document for the Canada student visa application.

Always check the specific requirements and procedures of the bank or institution offering the GIC, and consider consulting with their customer service if you have any questions during the application process.

Can Someone Else Pay For Your GIC in Canada?

Well, yes. You can apply for a Canada Student Visa with your friend's help as long as they provide a signed affidavit of support as proof of funds, which confirms their willingness and ability to support you financially. The proof can be bank statements, pay stubs, or a letter from their employer. Note that the Canadian government may ask for additional documentation.

Joint GIC Accounts:

A great approach to get funds from friends, family, or business partners is to open a Joint GIC Account. This makes multiple people like friends, family, or business partners co-owners of the account. If one of the co-owners passes away, the GIC goes under a ‘survivorship’ model and the remaining co-owners retain full control of the account.

Friends can benefit from combining their funds by establishing a joint Guaranteed Investment Certificate (GIC) account. This is advantageous for individuals who may lack the required funds individually but wish to capitalize on the stable returns offered by the GIC.

To secure a Canada student visa in 2024, it's important to plan and manage finances wisely, with a special focus on the Guaranteed Investment Certificate (GIC). This strategic approach will enhance the chances of a positive and rewarding academic experience in Canada.

Need more insights on how to open a GIC account? Don’t know where to start? Get in touch with the Best Immigration consultants in Chandigarh at Nationwide Visas today!

Read more on Quora:- What is the best way to show proof of funds for a study permit in Canada?