The GIC for Your Study Permit, Explained
If you're applying through the Student Direct Stream, the GIC is often the single largest thing you'll pay before you even leave home. Here's exactly what it is, why you need it, and how you get every dollar back.
What a GIC actually is
A GIC (Guaranteed Investment Certificate) sounds like an investment, and technically it is — but for a study-permit applicant it's really something simpler: proof that you can support yourself for your first year in Canada. You send the money to a Canadian bank before you arrive; the bank holds it, and once you land, it hands it back to you in installments.
It exists because of the Student Direct Stream (SDS) — a faster study-permit processing route. To use SDS, IRCC asks you to show you've genuinely got the funds to live here, and the GIC is the clean, standardized way to prove it. The current standard amount is CAD $20,635 (this is separate from your tuition).
The most important thing to understand
The GIC is not a cost. It's your own money, parked with a Canadian bank for safekeeping and returned to you after you arrive. The only real "costs" are a small setup/admin fee (often around $100–200) and whatever you lose sending the money over — which is exactly where a lot of newcomers quietly overpay.
How it works, step by step
- Open the GIC account online with an IRCC-recognized bank, before you submit your SDS study-permit application. You'll get an Investment Directive / confirmation letter.
- Transfer the funds (CAD $20,635) from your home country into that account. This international transfer is the step where the exchange rate matters most — see the note below.
- Receive your certificate confirming the GIC is funded. This is the document you include with your study-permit application.
- Arrive in Canada and activate the account — usually by verifying your identity and providing a Canadian address and (often) a SIN.
- Get your money back: the bank releases an initial lump sum, then pays out the remainder in monthly installments over about 10–12 months — effectively a built-in budget for your first year.
Where newcomers lose money — and how not to
Sending $20,635 internationally through a regular bank wire can quietly cost you hundreds of dollars in exchange-rate markup. Before you move that much, read how the hidden markup works in our send money home guide — the same math applies in reverse, and on a sum this size it's worth getting right.
Which banks offer the SDS GIC
All of these are recognized by IRCC for the SDS GIC. There's no single "best" — choose on processing speed, fees, and how fast they release your funds after you land. We keep this honest: none of these pay us, and the big banks belong here because they're worth knowing about.
The StartRight program is one of the most widely used GIC routes for SDS applicants, with a large branch network once you arrive.
- Well-known SDS GIC path
- Big branch network for activation
- Bundles with a newcomer chequing account
A popular choice known for a straightforward online setup and quick fund release after arrival, often paired with newcomer account offers.
- Simple online GIC setup
- Often quick to release funds
- Newcomer account bundle
A frequent pick for students from South Asia, with a fully online GIC process and no branch visit needed to open.
- 100% online opening
- Popular, well-documented process
- Fast digital certificate
State Bank of India's Canadian arm offers an IRCC-recognized GIC that's widely used and fully online to open.
- IRCC-recognized SDS GIC
- Online application
- Familiar brand for many students
Backed by CIBC's network, Simplii offers a GIC alongside a genuinely no-fee everyday account — handy once your installments start landing.
- No-fee daily banking to pair with it
- CIBC ATM network
- Simple online setup
What to do the moment your funds land
Your GIC installments arrive in a Canadian account — so the very first practical step after you land is making sure that account is a good one. If you haven't picked a bank yet, our newcomer banking guide compares the no-fee options, and our build-credit guide shows how to turn your first months here into a credit history (something the GIC alone won't do).
And when family sends you more money later in the year — or you send some home — remember the exchange-rate lesson from the transfer above: compare the amount that actually arrives, not the advertised fee.
Frequently Asked Questions
Honest answers about the study-permit GIC.
How much is the GIC?
Do I get the money back?
Which bank should I choose?
When should I buy it?
Is the GIC the same as tuition?
You've got the GIC — now set up the rest
A no-fee account for your installments, a plan to build credit, and a cheap way to move money. Start here.