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What is the Full Form of GIC? 

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GIC full form

The full form of GIC is Guaranteed Investment Certificate. It is issued by banks and firms giving a guarantee that the investor will get a certain return after a set period of time. The return on Investment is usually lower than other investment options like mutual funds, bonds and equities as the risk is quite low in GIC. 

As part of the Student Partnership Program (SPP), Chinese and Indian students who are applying to a Designated Learning Institute (DIL) for admission have to deposit a GIC to their Canadian bank accounts. 

  • Students are encouraged to open a GIC account who are applying with SPP.
  • GIC is offered in both cashable/Redeemable and non-cashable forms to international students. 
  • In the case of cashable or redeemable GICs, without incurring any fees students can get their money back at any time. 
  • In the case of non-cashable GICs, at any point in time, students are not allowed to ask for the money back without incurring fees. 
  • It is worth noting that the students should have GIC worth CAD 10,000 (INR 6.07 Lakh) which could cover their living expenses (excluding tuition fees) every year. 
  • Deposit affects the interest rate directly as it increases with the length of the warranty. 
  •  For the next 12 months, each month students can receive interest on a portion of the deposit.
  • Students will receive their entire deposit along with interest at the end of the college year. 

Benefits of GIC for International Students 

GICs provide a guarantee to the investors for the total deposit along with the interest that is pre-decided for the period of deposit. This makes GIC a safe investment option and provides a sense of security to investors. Following are some of the reasons which support the fact why a student should purchase GIC: 

  • Along with the documents of tuition fee payment, Indian students are required to purchase GIC for 6 months to 10 years who want to apply at SPP colleges in India. 
  • Having a GIC ensures that the student goes through the simple and speedy procedure for a study permit or visa application. 
  •  A GIC acts as a promise to the Canadian Government that the holder has enough funds to cover their living expenses. 

Also Read: Study in Canada: Colleges, Fees, Eligibility, Scholarships

Banks Offering GIC 

  • TD Canada Trust
  • SBI Canada Bank
  • Industrial and Commercial Bank of China
  • HSBC Bank of Canada
  • DesjardinsFootnote1
  • Bank of China
  • Bank of Xian Co. Ltd
  • Canadian Imperial Bank of Commerce (CIBC)
  • Bank of Beijing
  • Bank of Montreal (BMO)
  • Habib Canadian Bank
  • ICICI Bank
  • RBC Royal Bank
  • Scotiabank, Sympli Financial

Following are the documents given by the bank to GIC applicants which attest to the investment made: 

  • A GIC certificate
  • An investment direction confirmation
  • An investment balance confirmation
  • A letter of attestation

When it comes to releasing money the bank needs to authenticate the identity of the investor. A GIC holder can hold the investment in one of two accounts – a student account or an investment account, which the student cannot touch until they reach Canada. Following is the way in which banks release the money: 

  • The initial lump sum amount is paid after the GIC holder arrives in Canada and get their identity authenticated. 
  • The remaining amount is released in 10 to 12 months. 

We hope you liked this article, where we tried to cover GIC full form and other important information related to it. For more such informative articles keep following our page

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