What is a GIC and How Can It Help You Study in Canada?

A GIC in Canada stands for a Guaranteed Investment Certificate. It is a secure, low-risk investment offered by Canadian banks and trust companies that pays a fixed interest rate over a set period.

To understand what a GIC in Canada is, imagine a piggy bank in Canada. You put some money into it before a big trip. But this piggy bank has a special lock - nobody can open it, not even you, until you actually reach your destination. Once you arrive, the piggy bank opens itself a little bit every month, giving you just enough money to live on. That piggy bank, in a nutshell, is a GIC - a Guaranteed Investment Certificate. You may also like to read about - Cost of living in Canada for Indian students.

A GIC in Canada is one of the most trusted ways for Indian students to prove to the Canadian government that they can support themselves while studying in Canada and to receive that support safely once they land.

This article contains all the information you, as an Indian student, need to know about what a GIC actually is, exactly how much money you need in 2026 and what happens if your visa gets rejected. Check the best Canadian student cities in 2026.

What is a GIC in Canada?

A Guaranteed Investment Certificate (GIC) is a Canadian banking product used by international students to show their financial savings when applying for a student visa - it is not a fee, not a donation, and not something you can lose. To understand it fully, read this breakdown - 

• You give a Canadian bank an amount of money.

• The bank locks it in a special account and gives you a certificate (a piece of paper/PDF) that proves the money is really there.

• You attach that certificate to your Canadian study permit application as proof you can support yourself.

• Once you land in Canada and show your study permit, the bank starts giving the money back to you - a little at first, then monthly, over about a year.

• The bank even pays you a small amount of interest for letting them hold your money, just like a savings account.

So, you can think of it as a security deposit that isn't really a deposit -  it's your own money - held safely and handed back to you on a schedule - so you don't run out of cash in a new country. You may also read further to learn about education loans in Canada.

What’s the Need for a GIC in Canada?

Canadian immigration officers cannot personally verify a family's income or savings history in India. A GIC solves that problem neatly: it is a document issued by a Canadian bank, in Canadian dollars, sitting inside Canadian banking regulations - so it's very hard to fake and very easy for an officer to trust.

How much money do you actually need for a GIC in Canada in 2026?

This is the number everyone searches for. So, here is the official, verified figure straight from Immigration, Refugees and Citizenship Canada (IRCC) for 2026:

So, Indian students planning to study in Canada must submit CAD 22,895 (or INR 15 L approximately) for a Guaranteed Investment Certificate (GIC). It is advised that you always convert on the actual day you transfer money, since currency rates shift.

Additionally, there's a small one-time bank administration fee ranging from CAD $150 to $200, and it is charged on top of your GIC deposit.

What Does Your GIC in Canada Include?

For students, especially Indian students, a GIC in Canada typically covers living expenses only including - food, rent, transit and so on - for one year. 

But what it does not include is your tuition fee. So, you must present the proof for your tuition fee separately (usually via a paid tuition receipt or a Letter of Acceptance showing what you've already paid). It also does not include your flight ticket to and from Canada.

Do you still need a GIC, now that SDS is gone?

The Student Direct Stream (SDS) - the fast-track visa process that used to require a GIC for students from India, China, the Philippines, Vietnam, and a dozen other countries - was officially closed by IRCC back in 2024. It no longer exists in any form. 

So technically, since all Indian students now apply through the regular study permit stream, a GIC is not a mandatory document. However, IRCC's official list of accepted proof-of-funds documentation options includes:

• A Guaranteed Investment Certificate (GIC)

• Bank statements from the last 4 months (personal or family)

• Proof of a student/education loan

• A bank draft convertible to Canadian dollars

• A letter from whoever is funding you, along with their own proof of funds

• Proof of a scholarship or Canadian-funded program

So why is a GIC for Canada still recommended?

Even though a GIC is optional now, it still is the strongest evidence you can offer to prove that you can handle your living costs while studying in Canada. 

Benefits of a GIC for Studying in Canada

There are several benefits of having a GIC in Canada, such as:

1. It's unambiguous: If you submit a bank statement, it invites questions like - "Where did this money come from? Was it just deposited last week?". While a GIC certificate confirms: "This money is confirmed and locked in Canada" - and hence, no follow-up questions are needed.

2. It avoids the need to show months of family financial history. 

3. It protects you from a cash crunch after landing - Since the money is released to you in structured monthly amounts - you're less likely to overspend in your first excited weeks in a new country.

4. It builds your Canadian banking and credit history early - which can help later with things like a credit card or a car loan.

How to open a GIC in Canada from India? Step-by-step Process

Here is a list of steps you need to take to open a GIC in Canada from India:

1. Pick a participating bank: Only a few Canadian banks run dedicated student GIC programs designed for international applicants including - Scotiabank, CIBC, ICICI Bank Canada and SBI Canada Bank. Compare their fees, minimum deposit rules and how fast they issue the certificate - as these details keep updating often.

2. Register online: Register on your chosen bank’s official website for Canada. For this, you'll need your valid Indian passport and your Letter of Acceptance (LOA) from your Canadian college or university.

3. Send money for GIC to the bank via wire transfer. This is usually done through an authorised Outward Remittance from an Indian bank, following Reserve Bank of India (RBI) foreign exchange rules. Your bank will help you complete this legally and correctly.

4. Receive your GIC certificate: Most banks take roughly 5 to 10 business days to issue the official Investment Balance Confirmation or GIC Certificate. This is the document you attach to your Canadian study visa permit application.

How to Start Getting Your GIC Money on a Monthly Basis Upon Reaching Canada?

When you land in Canada, you will have to get your account activated by visiting the bank in-person. You will have to carry your passport, your study permit and the enrollment confirmation letter from your school along with you.

Initially, the bank releases an amount somewhere between CAD $2,000 and $4,000 into a regular chequing account. This amount is sufficient to cover your immediate setup costs like a rent deposit, a phone SIM or textbooks.

The rest of your GIC plus the interest it earned is divided across the remaining months of your first year (11-12 monthly payments) and deposited automatically into your account as your monthly "allowance" for groceries, transit and utilities.

What Happens to Your GIC Money if Your Canadian Student Visa Application is Refused?

Your GIC money is not lost if your study permit is refused. The principal amount (your original deposit) is refundable in that case. But to claim it, you must submit your official IRCC refusal letter to your Canadian bank along with your account details.

The bank then processes your request and the refund may take around 4-8 weeks to be processed. An important thing to note here is that - the bank's administration fee (that CAD $150-$200 charged when you opened the account) is non-refundable.

Also, apart from the condition of receiving a refusal on your study permit application, if you happen to cancel your study plans in Canada, then the same process of refund must be followed. 

This was all about GIC in Canada. If you seek assistance for studying in Canada, reach out to Shiksha’s Counselling Services for free.