What is a GIC, and How Can It Help You Study in Canada?

A student with a credit card and laptop in an office space, framed by illustrations of a Canadian university and a stack of coins, representing a GIC

As a future international student, you’ll have to prove to immigration officials you have enough money to support yourself during your studies. Even if you plan to work part-time while studying, your salary usually won’t be enough to cover both tuition and living costs. That’s why it’s important to prove you have access to a pre-set amount of money. Below, we’ll explain what a GIC is, and how it can boost your Canadian study abroad application.

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What is a GIC?

A Guaranteed Investment Certificate (or GIC) is a type of secured investment. GICs are most commonly offered by Canadian banks and financial institutions. If you’re an international student, this is a popular way to show proof of financial support. In fact, if you plan to apply for your Canadian study permit through the Student Direct Stream (SDS), you’ll need a GIC. As of January 1, 2024, one of the SDS’ requirements is that you have a GIC worth a minimum of C$20,635, to prove you’ll be able to support yourself.

GICs offer you a fixed interest rate for money that’s invested over a specific length of time. The shortest time you’ll see is usually around six months, but most last one to three years, and there are even GICs that have a five-year term. You won’t be able to withdraw or use the money during that time. In exchange for leaving your money in a GIC, the bank will ensure that at the end of the term you choose, you’ll get the amount you deposited back (which is why it’s called a “Guaranteed Investment”). 

A plant with coins beside it, symbolizing the growth of interest in a GIC

GIC Benefits

When buying a GIC, you’ll earn interest, or additional money, on the amount you deposited. The rate of interest you’ll get is often set, or fixed, when you deposit your money. That way, even if the market goes down, and interest rates drop everywhere else, you’ll still receive the interest you were promised. 

Often, the longer you keep your money in a GIC, the better the interest rate will be. That means if you won’t need the money for a while, consider a longer-term GIC to maximize your gains!

GIC interest rates are usually better than what you’d get in a savings account. Also, there’s no risk of losing your initial investment the way you might if you invested in stocks or mutual funds. So in many ways, GICs are a happy medium, and a good approach for students new to the Canadian banking system.

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What Do I Need to Know When Buying a GIC?

Check Out Different Options

Before you commit to one GIC, it’s smart to look around. See what different interest rates are offered, and what the time limits or terms look like. Sometimes, there are special GIC opportunities for international students with different timeframes and conditions, so be sure to look for those. You can also check with your college or university to see if they have any GIC recommendations.

Ask Questions

While the government of Canada actually requires that banking communication is clear and simple, we get it—banking terms can be confusing. Never be afraid to ask questions to the financial representative you’re talking to. They’re there to help you.

Also, remember you’ve got rights as a banking customer, including a right to specific info when buying a GIC.

The information you have a right to includes:

  • The term of the GIC (one year, three years, etc.)
  • How and when the interest is to be paid (yearly, or at the end of the term)
  • If the annual interest rate is fixed, what it is
  • If the interest rate is variable (changes), how it’s calculated, which rate they use to calculate your rate, the actual interest rate at your time of purchase, and how you can learn what the interest rate is during your investment
  • Any charges that apply
  • If and how you can cash in your GIC before the investment end date, if there are any penalties for doing so, and how that impacts the interest you get

If any info is missing, you have the right to ask for and get it from the financial institution. 

Prepare your Application

If you’re using the Canadian Student Direct Stream, remember you’ll need to purchase a GIC which meets SDS criteria. Please check the Government of Canada’s website for the most recent list of financial institutions with eligible GICs.

Once you purchase your GIC, you’ll need one of the following to show as proof:

  • A letter of attestation
  • A GIC certificate
  • An Investment Directions Confirmation
  • An Investment Balance Confirmation

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Between 2019–21, 10% of rejected Canadian student visa applications happened because Immigrations, Refugees and Citizenship Canada (IRCC) wasn’t convinced the applicant had enough funds to pay for tuition. Don’t let this happen to you! Learn how to create a strong application with the right proof of finances with our Proof of Financial Support blog.

Two hands upraised; floating between them is a coin with a dollar sign on it.

Can ApplyBoard Help Me Get a GIC?

While we’re not a financial institution ourselves, our ApplyProof team partners with the Royal Bank of Canada (RBC) and TD Bank, Canada’s largest bank, to make it easier for international students like you to provide proof of financial support. Read on to learn how you can set up a GIC quickly and easily.

  1. Once you have a letter of acceptance (LOA) from an eligible Canadian college or university, you can apply for a GIC with RBC or TD through ApplyBoard
  2. Once you’re approved, complete and submit your application, and set up your investment account
  3. Deposit funds in your GIC account and activate your account
  4. Include your certificate in your study permit application to make it even stronger
  5. Once you arrive in Canada, visit any RBC or TD branch to set up your GIC payments

Ready to apply for an RBC or TD GIC with ApplyBoard? Start your application now!


We hope that this post has helped you understand what GICs are, how to get one, and how they can strengthen your study permit application.

Ready to find study abroad programs in Canada? Check out the ApplyBoard Platform.

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