Education Loan

Student’s Guide to SBI Canada Guaranteed Investment Certificate (GIC)

Student’s Guide to SBI Canada Guaranteed Investment Certificate (GIC)

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Know everything about SBI Canada Guaranteed Investment Certificate. Read about the SBI student GIC application process and requirements and apply via GyanDhan now!

GyanDhan
Brinda Khurana
Updated on:  26 Feb 2024  | Reviewed By: 
Aman 
| 15.8K | 10  min read

Want to study in Canada? Other than knowing all the information about the college admission process, education loans, visa process, etc., you should also know about the financial compliances compulsory to fulfill before going to study in Canada.

Here, we are discussing one such mandatory financial compliance- the Student Guaranteed Investment Certificate (GIC).

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What is GIC and why is it needed?

Guaranteed Investment Certificate (GIC) is an investment account recommended for international students who want to study in Canada for programs under the SDS (Student Direct Stream)

  • list items All international students have to deposit their one year’s living expenses into any Canada-based bank to qualify for a Canada student visa
  • list items It is a mandatory requirement by the Canadian government. This investment account offers a guaranteed interest rate over a fixed term. Students have to leave their funds in the GIC for a specified period after which they are allowed to withdraw the money.
  • list items The Canadian embassy has made a minimum of CAD 10,000 compulsory as the GIC amount required for a Canadian student visa. It is for international students to prove that they can support themselves financially while studying in Canada. For Indian students, there are a few banks that offer GIC account services.

A Guaranteed Investment Certificate (GIC) from SBI Canada is one of the best ways to meet this requirement.

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Why should you prefer opening a GIC account in SBI?

Other banks that offer GIC account services usually charge $200-300 CAD as processing fees. On the other hand, SBI Canada sets CAD 150 (if the funds are sent from any other bank) as the service charge.

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How does SBI GIC Work?

  1. list items Set up an account with SBI Canada 
  2. list items Transfer CAD 10,000 and the service fees to purchase the GIC.
  3. list items Once the verification is done and the account is activated, SBIC will then open two accounts in the student’s name: A Super Saver account or a Chequing Account - The Bank will credit CAD 2,000 to this account A Non-Redeemable Student GIC account - The Bank will invest the remaining CAD 8,000 in a non-redeemable and non-renewable GIC account for a one-year term.
  4. list items A Super Saver account or a Chequing Account - The Bank will credit CAD 2,000 to this account
  5. list items A Non-Redeemable Student GIC account - The Bank will invest the remaining CAD 8,000 in a non-redeemable and non-renewable GIC account for a one-year term.

Every month for 12 months, an equal monthly installment of principal and interest will be paid from the GIC account into your savings or chequing account. Therefore, at the end of the 12 months, you will have a balance of CAD 0 in the GIC account.

SBI GIC Program Details

Valid At

Colleges in any Canadian province except Quebec.

Amount to Invest

CAD 150, if the funds are sent from a bank other than the State Bank of India.

Interest Rates

  • list items For Investment Account - 0.20% P.A
  • list items For Student GIC Account - 1.05% P.A
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Application Process

You can apply for your Student GIC through one of two online channels provided by SBI Canada Bank: 

Download the YONO SBICA mobile application, post that 

  1. list items Start your application by selecting "New Customer" and then "Open Student GIC".
  2. list items Enter your email address, mobile number, and One Time Password (OTP) to confirm.
  3. list items Read the directions carefully before entering your information and uploading a copy of your passport.
  4. list items Go over and review the terms and conditions. Examine your application, then send it.
  5. list items Congratulations!! The application is complete. Please remember your distinct client ID.
  6. list items To transfer funds to your SGIC Investment account, download and save the Student GIC Wire Payment instructions.
  7. list items Set your mobile PIN and login password.

 


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Online web application - Student GIC Portal 

In case you do not have access to a mobile device, you can also choose to apply through their web application-     

  1. list items Register on the portal and create your username and password.
  2. list items Start by clicking "My Application" and inputting your information.

(Follow the directions and supply the necessary data.)

  1. list items Upload a copy of the page(s) showing your passport information.

(Must be accompanied by your picture, signature, and address)

  1. list items Send your application in.
  2. list items Your application will be reviewed, and your SBIC Student GIC Investment will be sent along with the wire payment instructions and the account number.
  3. list items You can transfer CAD10,000 (ten thousand Canadian dollars), excluding costs, to acquire your GIC with SBI Canada Bank and satisfy Immigration Canada's financial requirements for a student visa after you receive your Student GIC investment account number and wire transfer details. You can receive wire transfer assistance from your bank. Please be aware that you can also be charged by your bank, including the State Bank of India. These fees are your obligation to pay. 
  4. list items There is a 150 CAD administrative fee levied by SBI Canada Bank which is non-refundable. 
  5. list items To process your GIC request and gather the necessary administrative costs, SBI Canada Bank needs to be given CAD 10,150 in full, without any deductions. 
  6. list items The money will be refunded to your bank account at the same bank where the initial wire transfer was started if SBI Canada Bank gets less than the requisite amount, and your GIC request won't be fulfilled.
  7. list items You are liable for covering any money transfer expenses as well as any intermediary bank or correspondent bank fees incurred as a result of the decline if your money is returned.
  8. list items Please be aware that money sent through third parties (such as parents, relatives, or friends) or through service providers like money exchange offices, money transfer services, money services companies, or any other third-party services will not be accepted.
  9. list items The wire transfer must originate from a bank account maintained solely in your name or jointly with your parent(s) or spouse in your country of residence.
  10. list items Please be aware that money will only be received if the beneficiary's (the recipient) name and the sender's name are the same. Your bank must make sure that Line 50 of the wire transfer/MT103 contains the name, account number, and complete address of the sender/student and Line 59 contains the name, account number, and full address of the beneficiary/student. If the applicant/student does not have a specific address in Canada, Line 59 must contain the student's complete home address. 
  11. list items The wire transfer will not be accepted if there is any discrepancy. Your GIC request won't be executed; instead, the money will be returned to your bank account at the same bank as the initial wire transfer was made. This is done at your own risk and expense.
  12. list items Please be aware that wire transfers internationally take roughly five business days. You are responsible for giving the funds enough time to transfer, taking into account the time zone difference between your nation and Canada as well as any weekends or holidays in both countries.
  13. list items After obtaining the needed funds, SBI Canada Bank will issue a downloadable Investment Declaration Advice in about one business day.
  14. list items The Investment Declaration Advice will include the interest rate on the issue date for a one-year Student Investment Account. You can access this information by logging into your mobile application (if you applied through the YONO SBICA app) or from the web application by using your credentials (if you applied on the online application). On their Interest Rates page, you can view their most recent interest rates for Student Investment Accounts. Every interest rate is occasionally subject to change.

The Investment Declaration Advice should be printed out and kept for your records. When applying, you must provide a copy of this letter for your student permit.

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How to activate the SBI GIC account after reaching Canada?

To activate your account and gain access to your funds after arriving in Canada, you must use their online KYC method (YONO SBICA), an SBI Canada Bank office, or a Canada Post station. Within 180 days of your arrival in Canada, you must complete this.

Through your mobile,

  1. list items Once you've logged in, go to the My Accounts section of the YONO SBICA app and select Activate Account.
  2. list items After carefully reading the directions, choose your account type.
  3. list items Include information about your Social Insurance number and Canadian study permission.
  4. list items Select Online KYC and enter your Canadian address.
  5. list items Review the Online KYC Terms & Conditions, choose your ID, and click the document's image.

Please note that this feature is only applicable to students who have applied for Student GIC using the YONO SBICA Mobile application.

By visiting a Canada Post location 

Visit the closest SBIC branch (Toronto, Mississauga, Scarborough, Brampton, Vancouver, and Surrey) to open a personal account and activate the GIC by providing the documents:

  1. list items Original Passport
  2. list items Original Visa/Study permit issued by the Canadian High Commission
  3. list items Original Letter of enrolment issued by your Canadian educational institution OR Student ID card issued by the Canadian Institution.
  4. list items Printout of Investment Declaration Advice issued by SBIC.

By visiting the SBIC Branch 

Verify the credentials through Canada Post. Fill out the application “Activate My Account” through the Student GIC portal and update your KYC information. Also, present the below documents to the staff at a Canada Post location for verification:

  1. list items Original Passport
  2. list items DSS number and unique 2D barcode
  3. list items Student GIC statement consisting of your Canadian mailing address (you can download the Canada Post ID verification instruction document and Student GIC Account Statement from the portal. Both documents are used and presented at Canada Post verification)

After the account activation is done, the bank will mail the welcome kit and debit card to your registered address in Canada and you will be ready to use the account with a debit card or internet banking /mobile banking.

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In what circumstances can I claim a GIC investment refund?

  1. list items The Canadian High Commission has declined your VISA / Study permit application. 
  2. list items The college to which you had applied has declined the admission. 
  3. list items The college has approved the admission but you do not wish to enroll and have withdrawn before your arrival in Canada. 
  4. list items You have decided not to apply for the Canadian Visa/Study permit after making the GIC investment. 
  5. list items You do not wish to continue your studies in Canada and have withdrawn the enrolment. 
  6. list items an image of your passport that reveals the revoked study permit you were issued by the Canadian visa office.
  7. list items A self-attested copy of the passport page with the entrance date stamped by the immigration authorities at the airport is one kind of evidence that you have returned to your country.  

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Refund process for SBI GIC investment

To process the refund, you must print the refund application form from the portal, sign it, and submit a scanned copy along with the documents (as applicable) through the portal. The process may take about 6-8 weeks. The bank will deduct a money transfer fee of CAD 25.00 from the eligible refund amount. 

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Documents required for the SBI GIC investment refund 

  1. list items A signed copy of the SBIC Student GIC Refund Application Form; and
  2. list items Refusal letter issued by the Canada VISA office in your country; or
  3. list items Refusal letter issued by a Canadian educational institution; or
  4. list items Canceled VISA / canceled study permit issued by the Canadian VISA office; or
  5. list items Canceled VISA / Study permit issued by the Canada VISA office in your country; or
  6. list items Proof of your return to your country. A self-attested copy of the passport page of the entry date stamped by the Immigration authorities at the airport evidencing your return is required.

Conclusion 

GIC is one of the simplest ways to demonstrate financial stability when applying for a Canada Study Visa. Students will benefit from the yearly interest on the fixed sum as well as a monthly allowance for living expenses. A GIC account can be utilized to not only acquire a Canada Student Visa, but it can also be a prudent alternative for earning profit from a short-term investment while studying. You can also go through our blog on the Cost of Studying in Canada for a better understanding.

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Read also

 

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Frequently Asked Questions 

What are the risks of GIC?

The most significant risk associated with GICs is the possibility of capital erosion or the possibility that your GIC's interest rate would lag behind the current rate of inflation.

Why is GIC rejected?

A GIC is most commonly rejected if the applicant is unable to provide a source(s) of funds (CAD 10,000+processing fees), such as from parents, guardians, scholarships, self-earned through a job, or send funds from a source, such as money exchange, that the Bank has made clear is not an acceptable source.

Can I withdraw money from GIC?

If you have a redeemable GIC, you can cash it in before maturity if certain conditions are met.

How does a five-year GIC work?

When you purchase a GIC, you are committing to lend money to a bank or financial institution for a set number of months or up to five years. Your money will earn interest in exchange. The longer the duration, the higher the interest rate. You will receive the amount you deposited plus interest at the end of the period.

Is GIC compulsory for a Canadian student visa?

Yes, GIC is now required in order to obtain a student visa to study in Canada. They normally do not examine applications that do not include a GIC because a GIC is a savings account that provides fixed returns to all eligible candidates over a certain length of time.

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