Can you explain how the Guaranteed Investment Certificate (GIC) works for living expenses in Canada?
A GIC is a secure Canadian bank account where you deposit your first-year living expenses before arrival. The bank holds the funds and releases them to you in monthly instalments once you activate the account in Canada. The minimum deposit is CAD 20,635 for the 2026 to 2027 cycle.
A Guaranteed Investment Certificate is not just a formality. It is both the official proof of funds that supports your Canadian student visa application and the financial safety net that ensures you have a regular income for living expenses from the moment you land.
Here is a step-by-step explanation of how the GIC works and what you need to set one up correctly.
How the GIC Process Works: Step by Step
| Stage | What Happens | Key Detail |
|---|---|---|
| 1. Choose a participating bank | You must use a Canadian bank that is an approved GIC provider; major options include CIBC, Scotiabank, and BMO | Not all Canadian banks offer the GIC program; confirm your university's preferred partner bank |
| 2. Deposit the required amount | Wire CAD 20,635 plus a bank processing fee of approximately CAD 200 to your new GIC account from India before visa application | The CAD 20,635 figure applies to single students outside Quebec; Quebec has a separate higher requirement |
| 3. Use it as proof of funds | The bank issues a GIC confirmation letter that you submit alongside your student visa application to IRCC | This document is mandatory; without it your visa file is incomplete |
| 4. Land in Canada and activate | Visit your bank branch in person or use their secure app to present your passport and Study Permit and unlock the payout schedule | Monthly payments do not start automatically; activation is a manual step you must complete |
| 5. Receive monthly payouts | The bank releases your principal in equal monthly instalments over approximately 10 to 12 months plus a small interest earned on the fixed deposit | The interest rate is modest; the primary purpose is structured fund management, not investment returns |
GIC Key Facts and Safeguards
| Situation | What Happens to Your Money |
|---|---|
| Visa is approved and you travel | Activate the account on arrival; monthly payouts begin once activated |
| Visa is refused | Full principal refund; only the bank's administrative processing fee is deducted |
| You need emergency funds | Early withdrawal rules vary by bank; some allow partial withdrawal with a penalty |
| You complete your studies early | Remaining balance can typically be withdrawn after the standard payout period ends |
| Interest earned | Credited at maturity; interest rates are fixed and modest and the GIC is not designed as a high-yield instrument |
My Advice
Start the GIC process at least 8 to 10 weeks before your visa application submission date. Banks take 2 to 4 weeks to process the account setup and issue your confirmation letter, and any delay on this document directly delays your visa submission. Once you land in Canada, do not put off activating the account. Go to your branch or log in through the bank's app within your first week because your monthly payouts only begin from activation. Factor in that your GIC covers living expenses only; your tuition fees are a separate payment handled directly with your university, not from the GIC balance.
Still have doubts?
Speak to a LeapScholar expert — free, no obligations.
More Cost & living questions
- Is it better to spend 12 lakhs in India or go abroad for higher studies in Germany for a Master's?
- How do US universities evaluate Indian LLM applicants differently from UK or European law schools?
- What is the fee range for a one-year MBA course compared to a two-year course in UK?
- Do I need to show living expenses in my bank account for visa purposes, and can I withdraw it after reaching Ireland?
- What is the minimum budget required for studying abroad in Canada or Ireland for two years?
- Can you provide the best UK university options for a Master's within my budget?
- What are the tuition fees for studying in Germany for a Master's/Bachelor's?
- What do you think are the chances of living a very comfortable life in the UK compared to India considering expenses?
More Canada questions
- Other than Canada and Netherlands, are there better countries to study science and technology in Germany/Singapore?
- Is the USA the best country option for my AI or data science master's program, or should I consider other countries in UK/Canada?
- What should I do to improve my chances of going to Canada as a teacher?
- What are the differences in career opportunities and PR options between Germany and Canada?
- What is the approximate scholarship amount I can get with around 90% or 9.2 CGPA in UK/Canada for a Postgraduate?
- Does it make a difference if my psychology degree from India is not from a UGC-approved college when applying for licensing abroad in UK/Canada?
- Can you suggest which sectors or fields are good for study in Canada?
- What are the best countries for studying clinical psychology abroad in Australia/Canada for a PhD?