A Blocked Account, commonly referred to as a Guaranteed Investment Certificate (GIC), is a specialized financial instrument tailored to meet the financial requirements of international students planning to study in Canada. Essentially, it is a savings account where a specified amount of money is deposited for a predetermined period, typically ranging from 6 to 12 months. The funds deposited in the Blocked Account are "locked" or inaccessible for withdrawal during this period, ensuring that they are reserved exclusively for covering the student's living expenses and tuition fees while studying in Canada.
The Canadian government mandates the use of a GIC as a means for international students to demonstrate proof of financial support during their stay in Canada. It serves as a safeguard to ensure that students have adequate funds to cover their living expenses, such as accommodation, meals, transportation, and other necessities, as well as their tuition fees. By requiring international students to deposit a specific amount into a GIC, Canadian authorities aim to ensure that students can sustain themselves financially throughout their academic program without relying excessively on part-time work or other sources of income. This financial stability contributes to a smoother and more fulfilling educational experience for international students studying in Canada.