GIC Revised GIC to $20000 CAD

[selvakk]

I see a lot of people are worrying without analysing the impact of proposed change in the GIC requirement.
My analysis as I see it is that in most cases it may bring down the upfront financial cost(requirement). In the current scenario under SDS the funds required are GIC (CAD 10000) plus one year (2 semester) fees which in majority of cases for PG/Masters program works out to be more than the proposed increase in the GIC.
Disbursement under the current GIC is CAD 2000 as soon as you reach Canada and open your bank account and the balance GIC is disbursed @ 670 CAD per month over the period of 12 months. What is still not clear is how the disbursement norms will change after this proposed increase. If the disbursement ratio remains the same then the second semester fees can be paid by saving the increased GIC payout.

Yes, this is what I have also being saying. Even for a Graduate certificate/ Post graduate diploma course the average semester fee is 8000 which is just 2000 shy of the required amount.

This is much happier news for Degree and masters students where one semesters fees can be 15-16 CAD.

Also, there would be more banks for us to choose from, since the list is no longer restricted to a select few. We should see more offers from other banks, it may not be beneficial for us who are going for the Sept 2019, but in the future we should see other offers for more banks.

To my knowledge the calculation is

10,000 GIC

2,000 CAD upfront + Interest (amount depends on when you deposited)

8000 CAD / 12 months = 666.66 CAD ( rounded off to 667 )

20,000 GIC

2,000 CAD upfront + Interest (amount depends on when you deposited)

18000 CAD / 12 months = 1500 CAD

 

[amy333]

Yes, this is what I have also being saying. Even for a Graduate certificate/ Post graduate diploma course the average semester fee is 8000 which is just 2000 shy of the required amount.

This is much happier news for Degree and masters students where one semesters fees can be 15-16 CAD.

Also, there would be more banks for us to choose from, since the list is no longer restricted to a select few. We should see more offers from other banks, it may not be beneficial for us who are going for the Sept 2019, but in the future we should see other offers for more banks.

To my knowledge the calculation is

10,000 GIC

2,000 CAD upfront + Interest (amount depends on when you deposited)

8000 CAD / 12 months = 666.66 CAD ( rounded off to 667 )

20,000 GIC

2,000 CAD upfront + Interest (amount depends on when you deposited)

18000 CAD / 12 months = 1500 CAD

Hope so ..things work like this ..1500 cad /month

 

[selvakk]

Hope so ..things work like this ..1500 cad /month

There is no other way. A GIC is like a fixed deposit. Most of the banks are having a program where your money is kept in this deposit and will earn interest. Once you reach Canada this GIC will be closed and you will be credited the interest and 2,000 CAD.

For the balance money, different banks have different methods . Scotiabank gives it in monthly payments for 12 months while CIBC gives it in 8 equal payments over 12 months.

Even now you can put more money into a GIC. A GIC is nothing special that is done only for visa purposes.

Basically the Canadian government wants to ensure that people have a Garunteed source of income.

Now whether you use it to subsidize your rent or buy an iPhone is not something they can control, but that's the idea.

 

[yoyo555666]

There is no other way. A GIC is like a fixed deposit. Most of the banks are having a program where your money is kept in this deposit and will earn interest. Once you reach Canada this GIC will be closed and you will be credited the interest and 2,000 CAD.

For the balance money, different banks have different methods . Scotiabank gives it in monthly payments for 12 months while CIBC gives it in 8 equal payments over 12 months.

Even now you can put more money into a GIC. A GIC is nothing special that is done only for visa purposes.

Basically the Canadian government wants to ensure that people have a Garunteed source of income.

Now whether you use it to subsidize your rent or buy an iPhone is not something they can control, but that's the idea.

Hello Sir,

Please tell me what about the tution fees, is that included in GIC of $20000 or college can deduct fees from GIC. or we need pay 1 year tution fees along with $20000 GIC

 

[2b.or.not.2b]

Hello Sir,

Please tell me what about the tution fees, is that included in GIC of $20000 or college can deduct fees from GIC. or we need pay 1 year tution fees along with $20000 GIC

GIC does not include tuition fees. The proposed change is still work in progress and no specific guidelines have been issued. The broad framework is GIC of CAD 20000 plus one semester fees and compulsory online/e-application. How the increased GIC will be utilized or disbursed is still a grey area. Wait for some official communique.

 

[selvakk]

Hello Sir,

Please tell me what about the tution fees, is that included in GIC of $20000 or college can deduct fees from GIC. or we need pay 1 year tution fees along with $20000 GIC

As per the guidelines mentioned in the leaked presentation you don't need to pay 1 years tuition fees. Your college cannot access the GIC funds. The new guidelines do not require proof of tuition payment. You can in theory only get GIC and pay the tuition later according to the deadline set by your college/university.

 

[selvakk]

GIC does not include tuition fees. The proposed change is still work in progress and no specific guidelines have been issued. The broad framework is GIC of CAD 20000 plus one semester fees and compulsory online/e-application. How the increased GIC will be utilized or disbursed is still a grey area. Wait for some official communique.

I don't think it's a grey area since as of today Scotiabank allows you to put up to 50000 CAD in their startright GIC program and CIBC allows you to put 20000 CAD. It is only ICICI and SBI bank's Canadian branches that only allow you to put 10000 CAD in. I am unaware of how banks in the Philipines, Vietnam and China operate with regards to GIC.

Source:

https://startright.scotiabank.com/student-gic.html

"A GIC is an investment account that offers a guaranteed interest rate over a fixed period of time. With the Scotiabank Student GIC Program you can invest between $10,000 CAD – $50,000 CAD."

https://www.cibc.com/en/special-offers/international-student-gic.html

"Invest 10,000 Canadian Dollars (CAD) in the CIBC Student GIC Program. You can send a maximum of 20,000 CAD to sign up for the program"

Unless this becomes official this is all speculation on our part, at the end of the day.

 

[2b.or.not.2b]

I don't think it's a grey area since as of today Scotiabank allows you to put up to 50000 CAD in their startright GIC program and CIBC allows you to put 20000 CAD. It is only ICICI and SBI bank's Canadian branches that only allow you to put 10000 CAD in. I am unaware of how banks in the Philipines, Vietnam and China operate with regards to GIC.

Source:

https://startright.scotiabank.com/student-gic.html

"A GIC is an investment account that offers a guaranteed interest rate over a fixed period of time. With the Scotiabank Student GIC Program you can invest between $10,000 CAD – $50,000 CAD."

https://www.cibc.com/en/special-offers/international-student-gic.html

"Invest 10,000 Canadian Dollars (CAD) in the CIBC Student GIC Program. You can send a maximum of 20,000 CAD to sign up for the program"

Unless this becomes official this is all speculation on our part, at the end of the day.

People here are more concerned about the minimum requirement the gist of all the post confirm that they are worried about the increase. I believe that no one in this forum cares or wishes to invest the maximum in a GIC their worry being the increase in the initial financial outlay.
There is certainly a grey area that exist vis a vis the Minimum GIC subscription requirement and the disbursement. My post was for my fellow students who are worried due to this proposed increase and not addressed to those born with a silver spoon in the mouth to afford to invest CAD 50000 in GIC.

 

[selvakk]

People here are more concerned about the minimum requirement the gist of all the post confirm that they are worried about the increase. I believe that no one in this forum cares or wishes to invest the maximum in a GIC their worry being the increase in the initial financial outlay.
There is certainly a grey area that exist vis a vis the Minimum GIC subscription requirement and the disbursement. My post was for my fellow students who are worried due to this proposed increase and not addressed to those born with a silver spoon in the mouth to afford to invest CAD 50000 in GIC.

You still haven't understood my point. The GIC amount required for SDS processing is set by CIC. The disbursement of the GIC is done by the bank. Changing the amount from 10,000 to 20,000 will not change anything with regards to how you get the money.

My point in mentioning the limits is not to show that I have a silver or gold spoon in my mouth. The point is that the banks have systems in place to accept a higher amount for GIC. The more money you put, the more you will get back each month. There is no "grey area" that you speak of.

As mentioned before, you can put the single semester fees which you will not be paying in the GIC. You will be able to get the amount back before you need to pay the second semester fees.

I am sorry if you see different opinions as having a gold or silver spoons. Even I have to take a loan and am calculating how to go about it, I certainly don't have 50000 CAD in hand to put in a GIC.

 

[yoyo555666]

As per the guidelines mentioned in the leaked presentation you don't need to pay 1 years tuition fees. Your college cannot access the GIC funds. The new guidelines do not require proof of tuition payment. You can in theory only get GIC and pay the tuition later according to the deadline set by your college/university.

can we have to pay our tution fees from our GIC funds in future or have to pay separately from GIC or pay in india or after reached to canada can pay???

 

[2b.or.not.2b]

You still haven't understood my point. The GIC amount required for SDS processing is set by CIC. The disbursement of the GIC is done by the bank. Changing the amount from 10,000 to 20,000 will not change anything with regards to how you get the money.

My point in mentioning the limits is not to show that I have a silver or gold spoon in my mouth. The point is that the banks have systems in place to accept a higher amount for GIC. The more money you put, the more you will get back each month. There is no "grey area" that you speak of.

As mentioned before, you can put the single semester fees which you will not be paying in the GIC. You will be able to get the amount back before you need to pay the second semester fees.

I am sorry if you see different opinions as having a gold or silver spoons. Even I have to take a loan and am calculating how to go about it, I certainly don't have 50000 CAD in hand to put in a GIC.

Bro you are taking this personally never did I insinuate that you were born with a silver or gold spoon. It was an off the cuff quote meaning that if not all majority of the forum members are from middle class families looking for an opportunity to make their mark and not in a position to even dream of depositing such a hefty amount for GIC.
I agree that the CIC decide the quantum of GIC deposit and the manner in which it is being disbursed. My contention or argument is that the rationale behind this increase maybe that since majority of the study program have a duration of more than a year this increase may not result in more money in the hand but a repeat of the disbursement pattern in the second year. Till there is an official confirmation all this is speculation as you rightly pointed out .Hope you get my point.

 

[selvakk]

Bro you are taking this personally never did I insinuate that you were born with a silver or gold spoon. It was an off the cuff quote meaning that if not all majority of the forum members are from middle class families looking for an opportunity to make their mark and not in a position to even dream of depositing such a hefty amount for GIC.
I agree that the CIC decide the quantum of GIC deposit and the manner in which it is being disbursed. My contention or argument is that the rationale behind this increase maybe that since majority of the study program have a duration of more than a year this increase may not result in more money in the hand but a repeat of the disbursement pattern in the second year. Till there is an official confirmation all this is speculation as you rightly pointed out .Hope you get my point.

I get your point but I hope you understand that by quoting me post I can only assume that you are indirectly mentioning me.

The idea to increase the GIC amount is to ensure that only people with more finances are prioritised. It can logically be assumed that by increasing the number of countries they are making it harder so that fewer people take the SDS stream.

It is complete assumptions. Earlier they were only targeting Senegal and another country in Africa for SDS expansion. Since they speak French it would be a gateway to promote Quebec for higher studies.

This is a complete 180 degree turn that is being claimed. Either way there is no need to get worked up about it till it's official.

 

[selvakk]

can we have to pay our tution fees from our GIC funds in future or have to pay separately from GIC or pay in india or after reached to canada can pay???

GIC funds will be available to you once you land in Canada. You can do whatever you want with it, and that includes paying tuition fees.

It's like putting a fixed or term deposit, except you don't have a specified time. 2000 CAD will be release immideatly, and the rest of the funds will be given over a period of 12 months or however the particular bank gives it out. This is the same regardless of the amount.

 

[yoyo555666]

GIC funds will be available to you once you land in Canada. You can do whatever you want with it, and that includes paying tuition fees.

It's like putting a fixed or term deposit, except you don't have a specified time. 2000 CAD will be release immideatly, and the rest of the funds will be given over a period of 12 months or however the particular bank gives it out. This is the same regardless of the amount.

We can pay tution fees in india or we can also paid tution fees when we reached to canada from GIC?

 

[selvakk]

We can pay tution fees in india or we can also paid tution fees when we reached to canada from GIC?

You will have to pay your first semester fees before reaching canada. For example, for me in Humber college my first semester fees is due on June 15th 2019. If I don't pay this then I will lose my seat. Since this is before the program starts I will have to pay this in India.

My second semester on the other hand is only due on Jan 2020. I can pay the second semester in Canada.

Once you reach Canada, your GIC will be deposited to your Canadian bank account in monthly deposits for 12 months. You can use that to provide some money for tuition or all of the tuition money. Once the money comes to your account, it is yours to decide what you want to do with it.