GIC Canada: Types, Benefits, Eligibility & Account Process

What is GIC Canada?

To put it simply, a Guaranteed Investment Certificate or GIC Canada is a fixed-term, low-risk investment product which is offered by Canadian banks or financial institutions. A GIC guarantees a fixed return on your investment for a specific period of time.

Now, as for international students, getting a GIC is an important requirement during their study permit application process for top universities in Canada. It acts as proof of funds for study permits under the Student Direct Stream (SDS) program, to show the government that you have enough funds to support yourself in terms of fees and living costs when studying in Canada.

Moreover, in the student GIC Canada, you will have to deposit a minimum amount, which will then be locked in for a fixed term and will be insured by CDIC. Once you arrive in Canada, you will then be able to withdraw a sum of money in fixed 11 to 12 monthly instalments. This helps you provide financial security and a secure income during the first year of study and guarantees.

GIC in Canada Highlights

Take a look at important highlights regarding how GIC Canada works:

• Minimum Amount: As of 2025, the minimum GIC amount for Canada is around CAD 22,895.
• Certification: Once you submit the required funds in your GIC account Canada, the bank will issue a GIC Certificate or "Investment Directions Confirmation," which you can submit in your study permit application.
• Payout Structure: Once you arrive in Canada and activate your account, you will be able to withdraw an initial lump sum of around CAD 4,135 to CAD 4,895. You will then be able to withdraw the remaining balance in fixed instalments over the next 12 months.
• Fees: In addition to the fixed GIC Canada amount, you will also have to pay a processing fee of around CAD 150 to CAD 200 to the bank.
• Participating Institutions: Lastly, you must purchase your GIC from a Government of Canada-approved financial institution. These include Scotiabank, CIBC, ICICI Bank Canada, and RBC.

Types of GICs Available in Canada

The GIC in Canada are of three main types. These are generally categorised based on their accessibility and interest calculation. Take a look at the table below to know more:

Benefits of Guaranteed Investment Certificate (GIC)

Besides acting as proof of funds for international students, a GIC Canada also provides financial security, which provides a guaranteed return. Here are a few more benefits of the student GIC Canada. Take a look:

1. Faster Visa Process: The first and foremost benefit of a Guaranteed Investment Certificate is that it streamlines and often provides a faster study permit and Canada student visa application process.
2. Guaranteed, Secure Funds: Secondly, the amount you initially invest is completely secure, and you can earn up to 3.65% GIC rates Canada. This gives you protection from market fluctuations.
3. Canadian Banking Services: When you open a GIC account Canada, it simplifies the process of setting up a local Canadian bank account and getting access to other banking facilities like a debit card and online banking.
4. Additional Perks: Lastly, there are also some financial institutions which offer extra benefits as part of their GIC programs. These include waived fees on savings accounts, preferential exchange rates, or access to financial advice.

How to Open a GIC Account in Canada?

The process for opening a GIC account in Canada is pretty simple and straightforward. However, there are a few things that you need to keep in mind. Take a look at the sections and information below to find out:

1. Choose a Bank: Begin by choosing a bank which participates and is authorised to provide GIC to international students. Some top GIC banks in Canada are Scotiabank, CIBC, ICICI Bank Canada, or SBI Canada Bank. To choose one, you can compare them in terms of fees, high GIC rates Canada, and bank network.
2. Submit Online Application: Visit the official website of your chosen bank to complete the GIC application form. In this, you will need to provide personal details and upload all the required documents.
3. Receive Details: Once the bank reviews and approves your application, they will send you details like a new GIC account number, SWIFT code, and instructions for a wire transfer.
4. Transfer the Funds: Next, send a wire transfer of the required GIC amount for Canada to your bank account in the home country. Moreover, make sure that the wire transfer needs to come from an account that has your name or is jointly held with a part/spouse.
5. Activate Your Account: Lastly, you need to activate your account once you arrive in Canada. For this, you need to visit the local branch and verify your identity with your passport and study permit.

Eligibility Criteria for Canadian Guaranteed Investment Certificate

To get a Canadian Guaranteed Investment Certificate, there are a few eligibility criteria that international students need to meet. These include:

1. Country of Legal Residence: You need to be a permanent resident of the specific SDS program countries. These include Brazil, China, Colombia, Costa Rica, India, Morocco, Pakistan, Vietnam, and more.
2. Designated Learning Institution (DLI): Next, you also need to have an acceptance letter from a post-secondary DLI in Canada.
3. Financial Proof: As already mentioned above, you also need to show proof of funds through GIC Canada to cover your living expenses for the first year.
4. Language Proficiency: Since Canada is an English-speaking country, you also need to provide proof of English language proficiency. This is typically done with a minimum score of 6.0 in each band for IELTS Academic, or an equivalent score in other accepted tests like TOEFL and PTE.
5. Age and Location: Lastly, you should not be living outside of Canada when applying for a study permit. Additionally, many banks require the applicant to be at least 18 years old, though some may allow younger applicants.

Required Documents for Indian Students

When applying for a GIC account Canada, you will need to submit the following documents: 

• A valid passport
• Letter of Acceptance (LOA) from your DLI
• Government-issued ID (such as a PAN card for Indian students)
• Proof of enrollment or admission

How to Transfer Funds to a GIC Account from India?

To transfer funds to your GIC account from India, you need to use an authorised bank or a trusted online transfer service. Moreover, the transfer also needs to follow the Reserve Bank of India's Liberalised Remittance Scheme (LRS). The steps for this include:

1. Choose a Transfer Method: You can send the money from your Indian bank with the help of a wire transfer or a specialised online transfer service.
2. Submit Documents (KYC): Provide your chosen bank or transfer service with the required KYC documents, which usually include a valid passport copy, PAN Card, proof of enrollment, GIC account opening letter, and a signed LRS declaration form (Form A2).
3. Initiate the Transfer: If you are using a forex service, then lock in the exchange rate and send the money. The transfer must come from your Indian bank account, in the same name as on your GIC application.
4. Get GIC Confirmation: After the Canadian bank receives the funds (usually in 2–10 business days), they will send a GIC certificate or Investment Balance Confirmation. You need this document for your Canadian study permit application.

Wrapping up

Summing up, getting a GIC Canada is an important step for international students who are planning to study in Canada. Especially when it comes to the Student Direct Stream (SDS) program. Moreover, it not only acts as proof of funds for your study permit application, but it also provides financial security with a guaranteed return. However, the whole process of opening a GIC account can be a little complex, and to make sure that you don’t make mistakes, it is important that you seek help from study abroad consultants at Gradding. They can help you with each step, from choosing a bank and submitting documents to sending money and activating your account in Canada.

FAQS:

1. How Much Money Do I Need to Deposit into a GIC Account?

As of 2025, you need to deposit a minimum of CAD $22,895 into your GIC account. This amount will cover your living expenses plus fees in Canada for a year. Initially, you will get around CAD $2,000 when you land, and then the rest will be paid on a monthly basis for over 10-12 months.

2. What is the Purpose of a GIC Account for International Students?

For international students, a GIC account acts as financial proof of their study permit. It is a mandatory document which is needed during your visa application process. It helps in showing IRCC that you have enough funds to support your education in Canada for the first year

3. What Are Current GIC Rates in Canada?

The current GIC rates in Canada are around 2.25% to 3.65% for a 1-year term. However, this rate varies significantly depending on the institution and term. Moreover, you can get a higher interest rate for non-redeemable GICs as compared to cashable ones.

4. How Do I Choose the Best GIC Provider?

When choosing a GIC provider for yourself, it is really important that you first understand your financial needs. You can then compare multiple providers on the basis of GIC Rates, terms, ease of management, and deposit insurance.

5. What is the Difference Between Cashable vs. Non-Redeemable GICs?

The main difference between cashable and non-redeemable GICs is that one offers flexibility while the other offers higher returns. With a cashable GIC, you will be able to withdraw the funds before it matures after the initial waiting period. Whereas with non-redeemable GICs, your funds will be locked in for the entire term, and you’ll get higher returns because of the commitment.

6. Who Provides the Best GIC Rates in Canada?

The best GIC rate providers in Canada are often online banks and credit unions like EQ Bank, Achieva Financial, MCAN Wealth, Oaken Financial, and Saven Financial.