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What is GIC in Canada? Your Complete Guide for International Students

Post Date:- August 13, 2025
Author:- Shiva Krishna HR

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Table of contents

Introduction

What is GIC (Guaranteed Investment Certificate)?

Importance of GIC for Indian Students in Canada

How Does GIC Work for International Students?

Types of GIC Available for Students

Which Banks Offer GIC for Indian Students?

Step-by-Step Guide to Apply for GIC In Canada

Common Mistakes to Avoid While Applying for a GIC

Conclusion

Introduction:

Worried if you’ll have to deposit a huge amount of money upfront to get your Canadian study visa approved? It’s a real concern, especially when you’re already managing tight budgets for tuition and living expenses. That’s exactly why understanding what is GIC in Canada becomes so important.

Understanding the concept of GIC is crucial before heading to Canada. Let’s explore how this financial instrument plays a vital role in your student visa process and settlement journey.

What is GIC (Guaranteed Investment Certificate)?

The GIC or Guaranteed Investment Certificate is a secure investment product where you deposit a lump sum with Canadian banks for a fixed period. Think of it like a savings account that you can’t touch for a while, but it pays you guaranteed interest.

For international students, GIC becomes more than just an investment. It’s a mandatory financial proof that shows immigration officers you can support yourself during your studies.

During the investment period, your money stays safe with the bank while earning interest. This gives both you and your parents peace of mind knowing your funds are secure and growing.

Importance of GIC for Indian Students in Canada

For Indian students heading to Canada, a GIC isn’t just another document. It plays a key role in both visa approval and adjusting to life in a new country. Here’s why it’s so important:

Proof of Financial Readiness

The GIC shows Canadian immigration that you’re financially prepared to support yourself during your first year. It’s a core requirement under the SDS category and helps strengthen your visa application.

Covers Living Expenses

The amount you deposit reflects your estimated one-year living costs in Canada. It ensures that you have funds set aside to manage essentials like rent, groceries, transport, and more.

Monthly Payouts Offer Stability

Instead of receiving the full amount at once, you get monthly payouts. This helps you handle expenses steadily while you settle into your new routine.

Introduces You to Canadian Banking

Opening a GIC account gives you your first experience with the Canadian banking system. It makes future banking tasks easier and helps you feel more confident managing money abroad.

Now that we understand why the GIC amount is important in Canada, let’s take a look at how it actually works.

How Does GIC Work for International Students?

The GIC system works quite simply once you understand the process. You invest the required amount with an approved Canadian bank, and they manage your money in a structured way throughout your first year of studies.

Here’s how your GIC money gets distributed:

You transfer CAD [Canadian Dollars] 20,635 to your chosen Canadian bank
The bank holds your funds securely for 12 months
You receive monthly payments of approximately CAD 1,500 to CAD 2,000
After the investment period ends, you get back any remaining amount plus interest earned

This monthly payment system prevents you from spending all your money too quickly when you first arrive in Canada. Many students find this helpful because everything seems expensive when you’re adjusting to a new country and currency.

Types of GIC Available for Students

Indian students applying to Canada typically choose from three types of GICs, depending on their visa route and financial goals.

Non-Redeemable GICs

These are fixed-term investments that don’t allow early withdrawals. You receive a portion of the money back every month, which helps manage living expenses. This is the standard and accepted GIC type under the SDS visa route.

Redeemable GICs

These offer more flexibility and can be withdrawn before maturity. However, they are not valid for SDS applications, so they’re not ideal for most Indian students.

Equity-Linked or Market Growth GICs

These GICs are linked to market performance. You get a minimum guaranteed return plus potential bonuses depending on how the market performs. While not commonly chosen for SDS, they appeal to students interested in returns beyond fixed interest.

Most students go for the non-redeemable option due to SDS requirements.

Which Banks Offer GIC for Indian Students?

Several major Canadian banks have special programs designed specifically for international students. These banks understand the unique needs of Indian families and offer services that make the process easier.

Bank	Min GIC Amount	Service Fee	Interest Rate	Monthly Payouts
SBI Canada Bank	CAD 20,635	CAD 150	1.5%	CAD 4,135 upfront + 11 equal monthly payments
ICICI Bank Canada	CAD 20,635	CAD 150 + ~25 (wire charges)	1%	CAD 6,190 upfront + 11 monthly payments of ~CAD 1,313
Scotiabank	CAD 20,635	CAD 200	0.1-1%	CAD 4,127 upfront + 12 equal monthly payments

Step-by-Step Guide to Apply for GIC In Canada

Getting your GIC requires careful preparation and following the right steps. Missing any step can delay your application and affect your visa timeline.

Documents You Need:

Valid passport with at least 2 years validity
Study permit approval letter
Acceptance letter from your Canadian college or university
Bank statements showing you have the required amount
Completed bank application form
Recent passport-sized photographs

Application Process:

Choose Your Bank: Research different banks and compare their programs. Look at interest rates, processing times, and customer reviews before deciding.
Complete the Application: Fill out the online application form on your chosen bank's website. Make sure all information matches your documents exactly.
Upload Documents: Scan and upload all required documents in clear, high-quality PDF format. Blurry or incomplete documents will cause delays.
Transfer the Money: Send the GIC amount to the bank through wire transfer or other approved methods. Keep all receipts and reference numbers.
Receive Your Certificate: Once approved, the bank will issue your GIC certificate. This certificate must be included in your visa application.

Need help choosing the right bank or completing your GIC application? Our experts at QCK Loans can walk you through it.

Common Mistakes to Avoid While Applying for a GIC

Many students make simple errors that can delay their GIC approval and visa application. Learning about these common mistakes helps you avoid them and keeps your application on track.

Sending the wrong amount

A lot of students forget to include bank or transfer charges, which means the bank receives less than required. Always double-check the final amount before you send it.

Using someone else’s account

The funds must come from your own bank account. If not, your application can be rejected without much explanation.

Incorrect beneficiary details

Even a small typo in the account number or name can cause the transfer to fail. Take your time and cross-check all the details.

Missing documents

Incomplete forms or unclear scans can get your GIC rejected. Go through the checklist carefully and make sure everything’s in place.

Being aware of these pitfalls can save you time and prevent unnecessary stress during your application process.

Conclusion

Planning to study in Canada? Then understanding how the GIC system works is one of the first steps toward securing your student visa and managing your finances smoothly. It might look like just another requirement at first, but GIC is actually there to support you. It helps ensure that you have a steady monthly income while you settle in, and it also fulfils key visa conditions.

What matters most is starting early, picking the right bank, and knowing exactly what’s needed. At QCK Loans, we’ve helped thousands of students make informed choices about GIC and education loans. We understand your goals and guide you through the entire process so you can focus on your future, not just the paperwork. Let us help you take that next step with confidence. Contact QCK loans, today!

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