Before applying for the student visa an amount of $10,000 needs to be deposited in a Canadian bank. The bank will return the entire amount over a period of one year with a certain rate of interest.
Interest rates are typically lower than those available in countries such as India.The rate of interest will be almost 0.1 % in the case of the GIC. The deposit will be retained for a total of one year.You can get to earn a total of $10-$40 as interest over that one year period. This is basically a guarantee to the Canadian government that you can survive for at least a year as a student when you arrive in Canada.
The bank in which you deposited the GIC you should open an account as well. On the first day that you visit the bank you will get the $2000 of the $10,000 that you deposited in the bank. For the next 12 months you will get $670 in your savings account each month. This is a security if you do not have a part time job. Basically your rent, food and other expenses can be covered by this amount.
Which bank to choose for the GIC ?
There are 4 banks that offer the GIC namely
The ICICI and SBI branches in Canada are quite less so it is advisable to go for the Scotiabank and CIBC Bank.
$10,200 needs to be deposited as GIC . The $200 is the processing fees of the bank and it will take 5-7 days to complete the processing.
The deposit amount in the CIBC bank is $10,000 and the total processing time is 4-5 days .
- The name of the Indian or any account that the money is being transferred from and the GIC application form needs to be the same. If the names do not correspond, the application will be rejected and returned to the applicant.
- The residential address on the bank account needs to be the same as the one on the GIC application.
- The conversion rate will be a bit higher if you transfer the money from the private bank as opposed to the public bank in India. The work might be done a little quicker If you are using a private bank as opposed to a government bank.
In Canada, there are two sorts of accounts. Savings and checking accounts. The money from the GIC will come into either one of these accounts.
The checking account is for the day to day expenditure, the savings account on the other hand is totally for the savings and you get no interest on that. All the amount that Come into the checking account must be transferred to the savings account and must not be taken out from there.
Once a student gets to the third semester this fees will help them pay for the third semester during your college.
As a student one should Be looking to make $1000 a month working part time for 20/hrs a week.
The GIC’s principal function is to pay for college tuition.