What Is a GIC and Why Do International Students Need One?

If you are applying to study in Canada through the Student Direct Stream (SDS), you have likely come across the term GIC. It stands for Guaranteed Investment Certificate, and it is one of the key financial requirements for your study permit application. Here is everything you need to know.

What Is a GIC?

A Guaranteed Investment Certificate (GIC) is a type of secure investment offered by Canadian banks. When you deposit money into a GIC, the bank holds it safely and guarantees you will get it back, typically with a small amount of interest, over a set period.

For international students, the GIC serves a specific purpose: it proves to the Canadian government that you have enough money to support yourself during your first year of studies, beyond your tuition fees.

Who Is Required to Get a GIC?

You are required to open a GIC if you are applying for a Canadian student visa through the Student Direct Stream (SDS). SDS is available to students from specific countries, including India, China, the Philippines, Vietnam, Senegal, Morocco, Antigua and Barbuda, Brazil, Colombia, Costa Rica, Pakistan, Peru, and Saint Vincent and the Grenadines.

If you are applying outside SDS, a GIC is not mandatory, but it can still strengthen your application by demonstrating financial preparedness.

How Much Do You Need to Deposit?

As of 2024, the minimum GIC deposit required is $20,635, CAD. This amount is set by Immigration, Refugees and Citizenship Canada (IRCC) and is reviewed periodically.

Which Banks Offer GIC Programs for International Students?

• Scotiabank: StartRight GIC Program
• RBC: International Student GIC Program
• CIBC: Student GIC Program

These three are the most commonly used and are directly accepted as proof of funds in the SDS application process.

How Does the GIC Work After You Arrive?

Once you land in Canada and open a chequing account at the same bank that holds your GIC, the funds are released in two stages:

• An initial lump sum of approximately $6,190 is deposited into your chequing account right away
• The remaining balance is paid out in equal monthly instalments over the following 10-12 months

This structure is designed to ensure you have living expenses covered throughout your first year, not just at the start.

How to Open a GIC: Step-by-Step

• Choose a participating bank (Scotiabank, RBC, or CIBC)
• Visit the bank's international student or GIC page online
• Create an account or begin the GIC application
• Transfer the required funds ($20,635+) via international wire transfer from your home bank
• Receive your GIC certificate via email
• Include the GIC certificate in your SDS study permit application
• Upon arrival in Canada, open a chequing account at the same bank to start receiving your instalments

How Long Does the GIC Process Take?

Allow 5-10 business days for your international wire transfer to be processed and your GIC certificate to be issued. Start this process early, ideally 3-4 weeks before your study permit application deadline.

Frequently Asked Questions

Can I use any bank for my GIC? No. IRCC only accepts GICs from designated Canadian financial institutions. Scotiabank, RBC, and CIBC are the most widely used.

What happens if I withdraw my GIC early? Early withdrawal is not permitted under the SDS program while your study permit is active. The funds are held and released on the predetermined schedule.

Does the GIC earn interest? Yes, a small amount of interest is earned on your GIC balance, which is included in your monthly payouts.

Opening a GIC is a straightforward process once you understand it. Choose one of the three major banks, start early, and make sure your certificate is ready before you submit your study permit application.