Tips to open GIC Account in Canadian Banks for Indian Students

 

For Indian students studying in Canada, a GIC or Guaranteed Investment Certificate is an important financial product that can help them manage their expenses while they are studying. A GIC account in Canada is a safe and secured investment scheme that earns a fixed rate of interest and can be used to cover living expenses, tuition fees, and other education-related costs.

Here is what you need to know about opening a GIC account in Canada as an Indian student:

Choose a bank: To open a GIC account in Canada, you will need to choose a bank that offers this type of investment product. Some of the major Canadian banks that offer GICs include Scotiabank and Bank of Montreal (BOM).

You can also consider other financial institutions such as ICICI Bank Canada and HSBC Canada.

Indian Financial Institutions

You can also contact to financial institutions like Orient Exchange to open GIC Account in above mentioned banks from India. Many Institutions offers zero Inter bank rate to transfer money from India to Canada.

Understand the terms and conditions: Before opening a GIC account, it is important to understand the terms and conditions of the investment. This includes the interest rate, the minimum investment amount, the term of the investment, and any penalties or fees for early withdrawal. Make sure you read the all the terms and conditions and clear all the doubts while making a decision.

Choose the type of GIC: There are different types of GICs available in Canada, including redeemable GICs and non-redeemable GICs. Redeemable GICs offer the flexibility to withdraw your funds before the end of the term, while non-redeemable GICs offer a higher rate of return but do not allow early withdrawal. Consider your investment goals and financial needs when choosing the type of GIC that is right for you.

Gather required documents: To open a GIC account in Canada, you will need to provide certain documents such as your passport, study permit, and proof of enrollment in a Canadian educational institution. Make sure you have all the necessary documents in order to avoid any delays in the account opening process.

Deposit the required amount: To open a GIC account in Canada, you will need to deposit a specific amount of money that is typically around CAD 10,000.  This amount will be held in the account for a fixed term and will earn a fixed rate of interest. Some banks and financial institutions may require you to deposit the entire amount upfront, while others may allow you to deposit the amount in installments.

Deposit amount from India can be received through wire transfer, most of the financial institutions adopts wire transfer facility for sending money abroad.

Wait for the funds to be released: After depositing the required amount, you will need to wait for the funds to be released. The funds will typically be released in installments over a period of 12 months, which can help you manage your expenses while you are studying.

Monitor your investment: After opening a GIC account, it is important to monitor your investment regularly to ensure that it is performing as expected. Keep track of the term of the investment and any penalties or fees for early withdrawal.

In conclusion, opening a GIC account in Canada can be a great way for Indian students to manage their expenses while they are studying. By choosing the right bank and right financial institution, understanding the terms and conditions, and monitoring your investment, you can make the most of this investment opportunity. As always, it is important to consult with a financial advisor before making any investment decisions.