GIC Canada 2026: What it is, How it Works, Top Banks

What is a GIC Canada?

A GIC or Guaranteed Investment Certificate is a type of secured and fixed-term investment that is offered by Canadian financial institutions and helps students show proof of finance to Immigration, Refugees and Citizenship Canada (IRCC). This investment gives you a fixed rate of return on your invested amount or principal amount over a specific period of time, so that you can manage your expenses while studying in Canada.

In this, you will have to deposit a fixed sum of around CAD 20,635–22,895+. You can think of GIC Canada as a financial credibility certificate which shows the IRCC officer (who is reviewing your application) that you will be able to support your education in Canada. However, do note that it is no longer a mandatory requirement as SDS is no longer operational. But it still continues to be the single most effective financial document you can include in your study permit application in 2026.

How the GIC Payout Works?

The GIC Canada payout works in a way that ensures that international students get a steady flow of funds for at least their first year in Canada. To get your monthly GIC payout, you will have to first physically arrive in Canada and activate the account by submitting these documents:

• Study Permit (IMM 1442).
• Letter of Enrollment or Student ID from your school.
• GIC Confirmation Letter from the bank.

After this, you will get your GIC payout in the following ways:

1. Initial Payout: Once you complete the in-person identification, the bank will release a significant “settlement” portion to cover your immediate needs, like the first month’s rent, security deposits, furniture, and setting up your new life. The initial amount is usually around CAD 4,000 - 7,000.
2. Monthly Installments: After that, your remaining balance gets locked in for a 12-month investment and then gets released in equal monthly payments of around CAD 1,300 - 1,600 per month.

Helpful link: study permit extension canada

What is a GIC Canada?

A GIC or Guaranteed Investment Certificate is a type of secured and fixed-term investment that is offered by Canadian financial institutions and helps students show proof of finance to Immigration, Refugees and Citizenship Canada (IRCC). This investment gives you a fixed rate of return on your invested amount or principal amount over a specific period of time, so that you can manage your expenses while studying in Canada.

In this, you will have to deposit a fixed sum of around CAD 20,635–22,895+. You can think of GIC Canada as a financial credibility certificate which shows the IRCC officer (who is reviewing your application) that you will be able to support your education in Canada. However, do note that it is no longer a mandatory requirement as SDS is no longer operational. But it still continues to be the single most effective financial document you can include in your study permit application in 2026.

How the GIC Payout Works?

The GIC Canada payout works in a way that ensures that international students get a steady flow of funds for at least their first year in Canada. To get your monthly GIC payout, you will have to first physically arrive in Canada and activate the account by submitting these documents:

• Study Permit (IMM 1442).
• Letter of Enrollment or Student ID from your school.
• GIC Confirmation Letter from the bank.

After this, you will get your GIC payout in the following ways:

1. Initial Payout: Once you complete the in-person identification, the bank will release a significant “settlement” portion to cover your immediate needs, like the first month’s rent, security deposits, furniture, and setting up your new life. The initial amount is usually around CAD 4,000 - 7,000.
2. Monthly Installments: After that, your remaining balance gets locked in for a 12-month investment and then gets released in equal monthly payments of around CAD 1,300 - 1,600 per month.

How to Open a GIC Account?

You can easily open a GIC account online, and the whole process, starting from registration to receiving your GIC certificate, will take roughly 5-14 business days after the funds are received. You can follow this process below:

Choose Your Bank

First, start by choosing a bank from the IRCC-approved list. One of the most commonly preferred banks among Indian students is Scotiabank, as it has the highest IRCC recognition. Besides this, TD Bank is also becoming an increasingly popular alternative in 2026. Moreover, when choosing, it is better that you compare the banks across their setup fees, payout structure, and online banking features. Some of the major GIC Canada banks are:

• Scotiabank Student GIC Program
• TD International Student GIC
• CIBC International Student Pay
• SBI Canada Bank
• ICICI Bank Canada

Submit Online Application

Next, visit the bank’s official website and complete the international student GIC application. For this, you will need to give your full name, passport, date of birth, passport number, nationality, and your Letter of Acceptance (LOA) from your Canadian DLI.

In addition to this, some banks need you to submit your study permit application number. However, it is not necessary to start the GIC process.

Complete KYC Verification

While not all, there are some banks that may require you to verify your identity. This is usually done through a video call or document submission of a passport + government ID, like a PAN card. The process for KYC verification will take somewhere around 1-2 business days, and the GIC process will only begin after you get KYC clearance.

Receive Your GIC Account Number

After your KYC is approved, the bank will send you your new GIC account number, SWIFT code, and wire transfer instructions. You will need to use these to send funds from your Indian bank. Also, make sure to save these details carefully, as you are going to need them for your LRS Form A2 at the Indian bank.

Transfer Funds

For GAC, you will be required to send a wire transfer of at least CAD 20,635 to 22,895. When doing this, it is important that you send this transaction using an account that is either in your name or is jointly held with a parent/spouse. You should then allow at least 3 to 7 business days for the funds to arrive. You should also add extra buffer transfer fees in case there are any GIC account deductions.

Pay the Bank’s Setup/Processing Fee

The bank will also deduct a processing fee of around CAD 150-200 from the transferred amount or collect it separately. So beforehand, just confirm with the bank about it, in case they automatically deduct the fees from your submission, then you’ll have to add CAD 22,895 + CAD 150/200. This will help in making sure that the full “required” amount for GIC is in your account.

Receive Your GIC Certificate

Lastly, once the bank confirms the receipt of funds, they will issue a GIC Certificate or “Investment Directions Confirmation.” You will be required to upload this document when applying for a study permit. This usually arrives within 3-5 business days of the funds clearing.

Is GIC Canada Still Required Now that SDS No Longer Exists?

You must be wondering whether a GIC can still help you with your study permit since SDS no longer exists, and that GIC was a majorly important requirement for it. Well, even though having a GIC is no longer “mandatory”, it can still help you a lot.

What Was SDS?

For your context, SDS was a fast-track processing stream which was launched in 2018 for students from selected countries like India. This guarantees study permit processing within approximately 20 days in exchange for specific requirements. These are generally a GIC, first-year tuition fee payment in advance, and a minimum IELTS score.

What Replaced SDS?

The SDS has now been replaced by the Regular Stream in 2026. Below is how it differs from SDS:

So is GIC Really Optional?

While yes, GIC is not a mandatory requirement anymore under the Regular Stream, the reality is that the IRCC officers take financial proof much more seriously and carefully in the Regular Stream than they did under SDS. And showing your savings along with GIC can help you show stronger financial proof. Why? It is one of the strongest single financial documents. Hence, students who skip this often end up having higher chances of visa refusal.

Top GIC Banks for Indian Students in 2026

When applying for GIC, one thing you need to note is that only those banks that are approved by IRCC can issue GIC to international students for their study permit. Below are the main providers that are highly preferred by Indian students in 2026:

Full Financial Requirements to study in Canada in 2026

To study in Canada, you will have to show that you have enough money to support your education without working. It should also show that you can cover tuition fees, your living expenses, and transportation. To do this, you will have to:

• Show that you have enough financial resources to support your education in Canada for the first year.
• Show how you are planning to pay for programs that are longer than 1 year.

Besides these, you will have to submit the following documents:

• Proof of tuition and housing fee payment
• Proof of funds for living and travel expenses
• Proof of a Canadian bank account (if money transferred)
• GIC (Guaranteed Investment Certificate)
• Proof of education loan (if applicable)
• Bank statements (last 4 months)
• Bank draft in Canadian dollars
• Sponsorship letter (if someone is funding you)
• Proof of funds from the sponsor
• Proof of scholarship or financial support in Canada

Note: You will be required to have approximately CAD 22,895 per year for your living expenses in Canada. This does not include tuition and transportation costs.

Documents Required for Canada Study Permit in 2026

Here is a complete checklist of all the documents that are required to get a study permit for Canada in 2026:

Core Documents

• A valid passport (covering your full course + 6 extra months)
• Letter of Acceptance (LOA) from your college/university
• PAL (Provincial Attestation Letter), if required
• Study plan / SOP (your story: why this course, this college, and Canada)
• 2 passport-size photos (as per IRCC guidelines)

Financial Documents

• GIC certificate (CAD 22,895 in an approved bank)
• Bank statements (last 4–6 months)
• Tuition fee receipt or proof of loan/scholarship
• If sponsored: sponsor’s documents + support letter + relationship proof

Academic Documents

• Class 10 & 12 mark sheets
• Bachelor’s transcripts & degree
• English test scores (IELTS / TOEFL / PTE / CELPIP)
• CV/Resume (mainly for master’s applicants)

Additional Documents

• Biometrics fee receipt (CAD 85)
• Medical exam report (if required)
• Police clearance certificate (if applicable)
• CAQ (only if studying in Quebec)

Conclusion

Summing up, getting a GIC might not be mandatory anymore for international students, but it is still one of the smartest moves you can make to get your Canada study permit in 2026. It will not only strengthen your visa application, but it will also give you peace of mind as it secures your living expenses for the first year. In addition to this, it is also important for you to note that starting your GIC process early is crucial because it can help you avoid last-minute delays. But if you are already short on time or are finding it difficult to navigate, then you can connect with experts at Gradding for the right guidance and end-to-end support.

FAQs

1. How to Transfer Funds from India to Your GIC Account

To transfer funds from India to your GIC account, you need to follow the RBI's Liberalised Remittance Scheme (LRS) and go through these steps:

• Choose transfer method (bank wire or forex service)
• Complete KYC and submit Form A2
• Lock exchange rate (if using forex service)
• Send money in CAD
• Save SWIFT transfer receipt
• Wait 3–7 days for GIC confirmation

2. What is a PAL and do I Need One in 2026?

A Provincial Attestation Letter (PAL) is a document which is use to confirm that you have secured a study sport under your province’s limit for international students. Moreover, most of the UG and diploma students need a PAL to apply for a study permit in 2026. But if you’re going for a Master’s or PhD at a public college or university, you don’t need a PAL from January 1, 2026.

3. What Happens to My GIC Money if My Visa is Denied?

In case your visa gets refused, you can apply to get a refund from the bank. Most of the banks will cut a small processing fee and then return your full amount in about 3 to 8 weeks. All you will have to do is to submit your official visa refusal letter from IRCC.

4. What is TCS on GIC Transfer from India and Can I Get It Back?

When you send money abroad from India under LRS (Liberalised Remittance Scheme), you may need to pay TCS (Tax Collected at Source) if the amount exceeds ₹7 lakh in a year.

• 5% TCS if you’re using an education loan
• 20% TCS if you’re using your own funds