Guaranteed Investment Certificate Canada: Scotia Bank GIC and ICICI Bank GIC Program

In order to promote Canadian education among the masses, the Government of Canada launched the Student Partnership Program, popularly known as SPP to streamline admission and visa processes for students from India and China. However, in order to apply under SPP, students must purchase a Guaranteed Investment Certificate (GIC) of CAD 10,000 or as specified by Immigration, Refugees & Citizenship Canada (IRCC) for the specific province of arrival.

• A GIC is a secure investment option that guarantees the full amount of your original deposit along with the interest amount. The interest amount is calculated through a pre-determined interest rate for the duration of the deposit. A GIC can be seen as a fixed deposit in India.
• Scotia Bank and ICICI Bank are the only two Canadian financial institutions participating in Student Partnership Program. Students must apply at any of the above two banks for a GIC.
• With Scotiabank Student GIC Program, a student can invest between $10,000 CAD to $50,000 CAD.

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Guaranteed Investment Certificate Highlights

Guaranteed Investment Certificate can be further used a proof of funds to cover the applicant’s first year Cost of living in Canada.

What is Guaranteed Investment Certificate (GIC)

1. International students from India and China applying for admission in a registered DLI under SPP will require a GIC of CAD 10,000 under their name.
2. Approximately, CAD 10,000 is required by students every year to pay for their living expenses (excluding tuition fees). This requirement is fulfilled through the purchase of a participating GIC and evidence that you have paid your tuition fee.
3. Even in case of admission without SPP, students are advised to open a GIC account. However, it is not entirely necessary as students can also:
   • Submit a copy of the receipt showing advance payment of the tuition fee or
   • Copy of the letter for sanctioned educational loan from an Indian Chartered Bank for an amount equivalent of CAD 10,000, or
   • Disclose an amount equivalent to CAD 10,000 in your savings like PPF, FD or liquid cash (preferably 3 months old)

10 Things to keep in mind about GIC

• The longer the term of deposit, the higher is the interest rate.
• The total amount of deposit will be given back to you at the end of the term.
• In case you want your money before term end, you may have to face penalty.
• Minimum amount that you can invest in a GIC is $500. However, students must invest CAD 10,000 in order to use the same as proof of funds while applying under SPP.
• You can get your money back at any time you want without penalty in case of cashable or redeemable GICs.
• You cannot get your money back at any time you want without paying penalty in case of a non-cashable GIC.
• Your money is secure under the limits set by Canada Deposit Insurance Corporation (CDIC). However, this does not apply to U.S. dollar GICs or GICs of term duration of over 5 years.

Advantages of Guaranteed Investment Certificate 

• Easy and hassle-free processing of an application under SPP
• Get CAD 2,000 along with any accrued interest in your personal bank at the time of arrival in Canada.
• Get a portion of your deposited amount along with interest every month for the next 12 months.
• Students can use this amount to pay for their living expenses during their stay in Canada.
• Get your full amount of deposit along with interest in 12 months.

Before applying for study in Canada, Go through GIC application process for both the banks, below:

Scotia Bank Canada GIC Program

Serving more than 23 million customers all across the globe, Scotiabank is one of the largest banks in Canada. It is one of the only two banks participating in Student Partnership Programs. StartRight Program started by Scotiabank helps international students to not only apply for a Study Permit, but also offers a banking package with no monthly fees and an unsecured credit card with added perks as part of their special services.

• Scotia Bank runs a special program for international students with the name Scotia Bank Student GIC Program (SSGP).
• The program enables students to meet the requirements of Citizenship and Immigration Canada.
• Students can purchase a Guaranteed Investment Certificate (GIC) worth CAD 10,000 from Scotiabank.

SSGP Key Features

• CAD 2,000 along with accrued interest will be deposited in your personal account at the time of your arrival in Canada
• Students will receive parts of the total deposited amount along with interest every month for the next 12 months.
• Students can use this amount to pay for living expenses while in Canada.
• After the end of 12 months, students will have received the total amount deposited by them in the first place plus interest.
• Fee for SSGP- CAD 200

Scotia Bank GIC Program Application Process

• Students can simply apply online by clicking on ‘Apply now’ at the official website of Scotia Bank. Read the terms and conditions carefully in the Application Disclosure Statement before moving forward with the application form.
• Fill in the application form online and submit. Within few minutes of submitting the form, students will be sent a secure email id. Follow the instructions provided in the email to access Scotiabank Secure Email Service.
• While you do this, your application will be processed instantly and you will be given another secure email consisting your Scotiabank Investment Account number and wire transfer details.

Funding your account through Scotia Bank GIC

Your Scotiabank Investment Account number and wire transfer details can be used to add funds in your new account by simply wiring it to your new investment account.

How long will it take? An international wire transfer usually takes up to 5 business days to reach Scotiabank. To further verify on the duration, it is advised to check with your local remitting bank first.

Amount details: Students will need to remit CAT 10,000 to Scotiabank for their Scotiabank Investment Account. This is excluding CAD 200 for administrative fees, thus making a total of CAD 10,200.

Reasons for rejection: The money must be sent from your own bank account in your home country. Funds transferred into Scotia Bank from third parties (e.g. parents name only, relatives and/ or friends) will be rejected.

Transferring to your investment account- The money sent by you will be transferred to your Scotiabank Investment account. This may take upto 5 business days. Once the money is deposited in your Investment account, you will receive a confirmation mail namely “Investment Directions Confirmation”. Students can use this mail as proof while applying for a student Visa for Canada.

Scotia Bank GIC Account Activation

• After receiving your study permit and moving to Canada, make an appointment to visit any branch of Scotiabank to activate your account.
• The bank will open you a personal deposit account using your identification/documentation. You will need Investment Directions confirmation, valid foreign Passport, Letter of Enrolment from a Canadian Educational Institution (or a student ID card), Study Permit (e.g. IMM 1442), and Welcome Letter.
• An initial deposit of CAD 2,000 plus any accrued interest will be made in your personal account from your Scotia Investment Account. The remaining CAD 8,000 will be set aside for a non-redeemable GIC – Guaranteed Income Optimizer (GIO) which will provide you with fixed monthly payments in the Student Banking Advantage Plan account.

What to do if your Study Permit Application gets Rejected?

If your study permit is rejected or declined because of any reason, the entire amount of your investment i.e CAD 10,000 or the remaining balance if you have already received a portion of funds, will be refunded back to you by Scotia Bank. However, you will have to prove either of the below mentioned three cases:

• That your visa or study permit has been declined or canceled
• You are no longer invited by any Canadian education institute for pursuing your studies
• You are no longer a student at any Canadian Educational Institution because you have withdrawn your admission.

In case you are not continuing with your studies in Canada and withdrawing your name, tell Scotiabank branch that you are going back to your home country.
The bank will then close all accounts under you name and automatically request a refund when you return to your home country.

Once the refund is approved, it may take up to 4 weeks for the student to receive their refund.

Scotia Bank GIC Refunding Process

Once can fill and submit the online application for a refund at the official website of Scotia Bank. Students will need to submit the following details:

• Scotiabank Investment account number
• Wire return bank account details (if applicable)
• Original case number
• Reason for requesting a refund

Scotiabank will then verify your reason by confirming your Study Permit decline or cancellation with the Canadian Visa Authorities in your home country. Once the bank is convinced of your reason, the refunding process will be initiated.

After wiring the funds back to the account in your home country, you will be sent a confirmation mail on your secure mail. This email will include your ICN (Internal Control Number) which will enable you to check on the status of your wire transfer with your bank in your home country if required.

The process of refunding of funds may take up to 4 weeks from the date the correctly completed Refund Application is received at Scotiabank, Canada. In the case of corrections, it can be further delayed.

• The bank will not refund any processing and/or administration fees.
• It is the responsibility of the students to pay for additional fees charged by intermediary banks during the refund.

ICICI Bank Canada GIC Program

ICICI Bank Canada is a wholly-owned subsidiary of ICICI Bank Limited, the second-largest bank in India.

The bank is best known for offering a plethora of services and financial solutions to its customers in the field of personal, commercial, corporate, investment, treasury and trade.

Indian students planning to study in Canada under SPP can apply for a GIC account at ICICI Bank Canada. Under this program, they will receive a portion of their investment along with interest for the next 12 months while they are in Canada.

Key features of ICICI Bank GIC Program

• CAD 2,000 along with the accrued interest will be deposited in your personal account at the time of your arrival in Canada
• Students will receive parts of the total deposited amount along with interest every month for the next 12 months.
• Students can use this amount to pay for living expenses while in Canada.
• After the end of 12 months, students will have received the total amount deposited
• Participation fee for ICICI Student GIC program is CAD 150. The participation fee is non-refundable.

ICICI Bank GIC Program Application Process

The first and foremost step to initiate the application process for ICICI Bank Canada Student GIC Program is to register yourself for the program on the official website of ICICI Bank Canada. Follow the below-mentioned steps in order to do the same:

• Visit the official website of ICICI Bank. Click on the tab directing to Student GIC program.
• Click on the ‘Register / Login’ tab given below.
• You will be redirected to a page where you can either log in or register for the program. Since you are new to the program, click on ‘Register’.
• You will be required to fill in your name, username and email address. Select your password and security question, in case you do not remember your password on a later stage.
• Once you are done, a confirmation mail will be sent to the email address provided by you. This mail will consist of an activation link to complete your registration.
• Click on the activation link in order to confirm your registration.

Submitting Application Form

Once you have successfully registered in the program, you will be directed to our secure mailbox for initial communications with ICICI Bank Canada. Use your username or email address and password to login.

• Fill in the application form and submit it online. You will also have to submit a scanned copy of your passport and proof of enrollment in a registered DLI in Canada (if available).
• You will be then provided with an account number for your Student Investment Account.

 Note: In case the bank finds any discrepancies in your application, you will be notified via mail to your personal email address as well as the secure mailbox provided by the bank.

Funding Your Account through ICICI Bank GIC Program

Students will need to deposit a minimum of CAD 10,175 in their Student Investment Account via wire transfer. The breakdown of the money is given below:

Note: Students must ensure that the entire payment must be sent to their Investment account in a single transaction. They must not send multiple deposits in their accounts.

Once your funds are received in your Investment account, a mail regarding Investment Balance Confirmation will be sent to you via the secure mailbox. It is suggested to print a copy of the same for future reference. Your account will consist of any excess amount after deducting the corresponding bank charges and processing fees.

Activating Your Account for ICICI Bank GIC Program

ICICI Bank has a customized app- ‘ICICI Bank Canada SPP App’ that enables easy activation of your SGIC Account. Students can either complete the application through a mobile app or can do the same online.

• Download the above-mentioned app, available on android only.
• While you are in India, confirm receipt of your debit card and update us with your travel plans.
• Once you arrive in Canada, fill in the activation form online or through a mobile app.
• Upload the scanned or HD pictures of the required identification documents online or through the mobile app.
• Visit your desired ICICI Bank Canada branch to complete your in-person verification.
• Once your verification is complete, the bank will open your own personal chequing account.
• Soon CAD 2000 along with any accrued interest will be transferred from the Student Investment Account to your Personal Chequing Account.
• CAD 8000 of your remaining amount will be invested in a 1-year fixed-term GIC.
• Parts of the total principal amount will be deposited into your personal chequing account along with interest in 12 equal monthly installments.

What to do if your Study Permit application gets Rejected?

If your study permit is rejected or declined because of any reason, the entire amount of your investment i.e CAD 10,000 or the remaining balance if you have already received a portion of funds, will be refunded back to you by ICICI Bank Canada under the Guaranteed Investment Certificates (GICs) - Refund Policy. However, you will have to prove either of the below mentioned three cases:

• That your visa or study permit has been declined or cancelled
• You are no longer invited by any Canadian education institute for pursuing your studies
• You are no longer a student at any Canadian Educational Institution because you have withdrawn your admission.

In case you are in Canada but are not continuing with your studies here and withdrawing your name, tell ICICI Bank Canada that you are going back to your home country.
The bank will then close all accounts under your name and automatically request a refund when you return to your home country.

Students can request a refund through ICICI Bank Secure E-mail Service. The bank will then verify your reason by confirming your Study Permit decline or cancellation with the Canadian Visa Authorities in your home country. Once the bank is convinced of your reason, refunding process for outstanding principal along with any accumulated interest will begin.

Once the refund is approved, it may take up to 6 weeks for the student to receive their refund.

ICICI Bank GIC Refunding Process

Students will have to fill and submit an application for the same. You can download the application for Refund from Secure Email or from the link given on the website.

• Fill and submit the refund form along with other supporting documents using ICICI Bank Canada Secure Email Service. Sign in and reply to the very last mail sent to you. Use ‘ICICI SGP – your full name (Given/First and Surname/Last) – your passport number – Refund Request’ as the subject line for the mail.
• If the bank finds your refund request as incomplete or incorrect, your application will be rejected and returned along with feedback. Make required changes and submit the form again.
• After your refund request is approved, the bank will confirm that the reason stated by you is correct and that your Study Permit is no longer valid.
• Once the formalities are complete, your funds will be wired back to the bank account connected in the first place.
• The same will be confirmed to you via mail using ICICI Bank Canada Secure Email Service
• You are likely to receive funds within the next 6 weeks.

Both ICICI Bank and Scotia Bank have their own terms and conditions pertaining to GIC. Students must go through the same before investing their money in the same. While it is compulsory to have a GIC Account in case of admission under SPP, it is advised to open a GIC account otherwise as well.

A GIC is likely to help you get a Canadian Study Visa easily and can be used as a proof of finance by the students.