A Guaranteed Investment Certificate (GIC) is a Canadian investment product that international students often use to show they have enough money to cover living costs during their first year of study. You deposit a set amount with a participating Canadian financial institution before you apply, the institution gives you a letter confirming the funds, and you include that letter in your study permit application as proof of financial support. The amount usually matches IRCC's single-applicant cost-of-living figure, which rose to CAD $22,895 for applicants outside Quebec on September 1, 2025. This living-cost amount is separate from your tuition, which you must show in addition. The important context for 2026: the GIC used to be mandatory under the Student Direct Stream (SDS), but SDS ended on November 8, 2024, so a GIC is now just one accepted way to prove your funds, not a requirement. Always confirm the current figure and the accepted proof on the official IRCC website, and remember an officer decides whether your proof is sufficient.
What a GIC is and what it proves
A Guaranteed Investment Certificate is a low-risk savings product where you deposit money for a fixed term and the institution guarantees the principal. For study permit purposes, students use a specific student GIC: you transfer the funds to a participating Canadian financial institution, and it issues an investment certificate or confirmation letter you can submit as proof that you have living-cost money available in Canada.
The GIC proves the cost-of-living portion of your financial requirement only. As an applicant outside Quebec, you must show that you can cover living expenses for your first year, and as of September 1, 2025 that single-applicant figure is CAD $22,895, up from the previous $20,635. That is why student GICs are typically sold in an amount that matches this living-cost figure. Quebec sets its own financial thresholds, so the amount differs if you plan to study there.
What this means for you: the GIC covers living costs, not tuition. You still need to show that your tuition is paid or that you can pay it, on top of the GIC. IRCC reviews the cost-of-living amount roughly every year and ties it to a percentage of the low income cut-off, so treat $22,895 as a snapshot and verify the live figure on the official IRCC study permit page before you apply.
How a GIC works, step by step
First, you open a student GIC account with a participating Canadian financial institution, often online from your home country before you travel. You transfer the GIC amount (commonly the living-cost figure) plus the institution's program or set-up fee. Once the institution receives the money, it issues a GIC certificate or an investment confirmation letter, which you include in your study permit application as proof of funds.
After your study permit is approved and you arrive in Canada, you activate the account, usually by visiting a branch with your passport, study permit, and supporting documents. The institution then releases the money to you in two stages: a larger initial amount shortly after you arrive to cover your first costs, and the remaining balance in roughly equal monthly installments over the rest of the year. The exact split and timing depend on the institution.
What this means for you: the GIC is designed to give you a steady flow of living-cost money through your first months, not a single lump sum, although some institutions offer more flexible withdrawal options. Read the institution's specific terms, including the program fee, the release schedule, and any interest paid, before you commit, because these details vary.
Which financial institutions offer a student GIC
Several Canadian financial institutions offer student GIC programs, and the list can change, so confirm directly with the institution before you transfer any money. Commonly used providers include Scotiabank, CIBC, BMO, ICICI Bank Canada, and SBI Canada Bank. Each runs its own student GIC program with its own application process, fees, and fund-release schedule.
The institutions differ mainly in how you apply (some make online application from abroad simple), how quickly they process the deposit, the program fee they charge, how much they release on arrival versus monthly, and whether they pay interest on the balance. Some institutions allow you to withdraw the full balance on arrival rather than in installments. What this means for you: compare the fee, the release schedule, and the application process across a few institutions, and make sure the one you choose issues documentation IRCC will accept.
Be cautious of third-party agents who promise to arrange a GIC for an extra fee. You can generally open a student GIC directly with the financial institution, and IRCC does not require you to use any particular intermediary. If something looks like a guarantee of study permit approval, treat it as a warning sign, because no institution or agent can guarantee that an officer will approve your application.
GIC vs other proof of funds (and why it is now optional)
The GIC is not mandatory. It became optional for everyone when IRCC closed the Student Direct Stream (SDS) on November 8, 2024. Under SDS, applicants from certain countries had to buy a GIC (set at the living-cost amount, which was $20,635 at the time) and submit language results to qualify for faster processing. With SDS gone, all study permit applications now go through the regular stream, and the GIC is simply one of several accepted ways to show your living-cost funds.
Other accepted proof of financial support can include bank statements showing funds in your name, a Canadian bank account with transferred funds, proof of a student or education loan, a scholarship or funding letter, and evidence of paid tuition. Many students still choose the GIC because it produces a clean, standardized document and a predictable release of money after they arrive, but you can meet the requirement other ways if they suit your situation.
What this means for you: choose the proof that genuinely reflects money you can access in Canada. Whatever you submit, the funds should be real, available, and verifiable, and an officer makes the final decision on whether your proof is sufficient. None of this is legal advice; for your specific situation, consider speaking with a licensed Canadian immigration lawyer or a regulated CICC consultant.
Frequently Asked Questions
Is a GIC required for a Canada study permit in 2026?
No. A GIC is one accepted way to show living-cost funds, but it is optional. It used to be mandatory under the Student Direct Stream, but IRCC closed SDS on November 8, 2024, so all applicants now use the regular study permit stream and can prove funds in other ways.
How much should the GIC be?
Student GICs are usually sold in an amount that matches IRCC's single-applicant cost-of-living figure for applicants outside Quebec, which rose to CAD $22,895 on September 1, 2025, up from $20,635. This figure is reviewed roughly yearly, so confirm the current amount on the IRCC website before you apply.
Does the GIC cover my tuition?
No. The GIC covers the cost-of-living portion of your financial requirement, not tuition. You must show your tuition separately, in addition to the GIC, when you apply for your study permit.
How is the GIC money released to me?
After you arrive and activate the account, the institution typically releases a larger initial amount to cover your first costs, then pays out the rest in roughly equal monthly installments over the year. The exact split and timing depend on the institution, and some allow a full withdrawal on arrival.
Which banks offer a student GIC?
Commonly used providers include Scotiabank, CIBC, BMO, ICICI Bank Canada, and SBI Canada Bank. Each has its own program, fees, and release schedule, and the list can change, so confirm directly with the institution before you transfer money.
What other proof of funds can I use instead of a GIC?
Accepted proof can include bank statements in your name, a Canadian bank account with transferred funds, a student or education loan document, a scholarship or funding letter, and evidence of paid tuition. The funds must be real and accessible, and an officer decides whether your proof is sufficient.
Did the Student Direct Stream affect the GIC requirement?
Yes. The SDS required a GIC and language results for faster processing. When IRCC ended SDS on November 8, 2024, applications previously eligible under SDS moved to the regular stream, where a GIC is no longer required but is still accepted as proof of living-cost funds.
Can I open a GIC before I travel to Canada?
Yes. Many students open a student GIC online from their home country before applying, transfer the funds plus the program fee, and receive a confirmation letter to include in the study permit application. The money is then released to you after you arrive and activate the account in Canada.
Guides
Official sources
This page is based on law and policy published by the Government of Canada.