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GIC Increase in Canada - Unlocking Pros and Cons for Students

Canada stands as a favored destination for Indian students pursuing international education, offering not just an exciting adventure but a pathway to substantial personal and academic growth. Navigating recent shifts in the Guaranteed Income Certificate (GIC) landscape calls for a strategic financial approach.

In this dynamic scenario, FRR Forex steps in as your seasoned financial ally, ready to accompany and guide you through the intricacies of the GIC. Together, let's delve into its details and prepare to tackle potential challenges, ensuring that Indian students make the most of their educational journey in Canada.

What is GIC? 

The Guaranteed Income Certificate (GIC) is a crucial component in the Canadian government's Student Direct Stream (SDS) Program, facilitating the entry of international students into Canada for educational purposes. As a prerequisite for obtaining a visa, international students are required to hold a GIC account, a financial instrument managed by the Canadian government. This certificate acts as a safety net, providing funds for essential needs during the course or allowing students to make self-withdrawals.

Why has the Canadian government introduced GIC? 

The Canadian government introduced the GIC as an integral element of the Student Direct Stream Program, reflecting its dedication to maintaining controlled immigration and prioritizing the welfare of international students. This financial prerequisite acts as a safeguard, guaranteeing that students entering Canada have a reliable financial safety net to meet their fundamental daily needs, including housing, transportation, and other essential expenses.

What is the amount to be transferred for GIC? 

The Canadian Government has increased the amount from CAD 10,000 to CAD 20,635 effective from January 1, 2024. This development has implications for all international students, mandating them to meet the augmented investment requirement for obtaining a Canadian study visa.

Canada's decision to double the GIC amount is a direct response to the escalating living costs within the country. Factors such as the annual inflation rate and the current unemployment rate contribute to this financial adjustment. Nonetheless, this changes financial requirements for Indian students intending to study in Canada, necessitating them to adapt their budgets accordingly.


FRR TIP: Avoid paying directly in INR on the bank's portal for your GIC account. Opt for payment through CAD to secure significantly better exchange rates and enhance your savings.


How can a student use the GIC funds - GIC withdrawal rule? 

Students can utilize the funds from their GIC account following a specific withdrawal rule. Here's a breakdown of how a student can access and use the GIC funds:

1. Upon Arrival in Canada: 

After arriving in Canada, students must undergo an in-person verification process at the nearest branch of the bank where they hold the GIC account.

2. Initial Lump Sum Transfer: 

A portion of the GIC amount is transferred as an initial lump sum to the student's Canadian bank account. The exact amount varies among different banks but typically ranges from CAD 4,127 to CAD 6,190.5.

3. Monthly Installments: 

For the remaining funds in the GIC account, students receive monthly installments. The monthly payout amount varies by bank, typically ranging from CAD1,204 to CAD1,376, and includes any accrued interest. These installments are intended to cover living expenses and study-related costs.

4. Withdrawal Through Canadian Bank Account: 

Students can withdraw the monthly installment amounts from their Canadian bank account using tools like an ATM card or checkbook. This allows them to access the funds for various expenses throughout their stay in Canada.

What are the advantages of having a GIC account? 

Having a GIC account comes with several advantages for international students studying in Canada:

1. Financial Security in Canada:

The GIC provides a reliable source of funds, allowing students to withdraw money for essential needs such as housing and transportation upon their arrival in Canada.

2. Monthly Expense Support: 

It eases the financial burden on students and their families by offering monthly payments. This helps cover ongoing expenses, including accommodation, groceries, and other necessities.

3. Establishes a Financial Safety Net: 

The GIC acts as a financial safety net, ensuring that students have a steady flow of funds throughout their study period. This helps prevent financial hardships and enhances the overall experience of studying abroad.

Overall, a GIC account is a valuable financial tool that contributes to the well-being and financial stability of international students pursuing their education in Canada.

Which banks can a student open a GIC account?

Students planning to open a GIC account in Canada have several reputable banks. Some of the prominent banks offering GIC accounts for international students include: 

The single most important factor to consider when opening a GIC account is checking whether the bank has a branch in and around your university/college campus. 

For personalized assistance and guidance in navigating the GIC account opening process, get in touch with FRR FOREX. We're here to help you make informed decisions and smoothly embark on your financial journey as an international student in Canada.

How to open a GIC account?

Here are a few guiding steps for students to safely open their GIC accounts:

1. Choose a Designated Bank:

Select a bank like Canadian Imperial Bank of Commerce (CIBC), Scotiabank, ICICI Bank Canada, or Royal Bank of Canada (RBC).

2. Check Eligibility:

Ensure acceptance into a Canadian Designated Learning Institution (DLI) and have a letter of acceptance.

3. Prepare Documentation:

Gather passport, acceptance letter, and proof of identity.

4. Determine GIC Amount:

Verify the required GIC amount - currently CAD 20,635 as of January 1, 2024.

5. Initiate Application:

Use the online application process provided by most banks.

6. Submit Application Form:

Complete the online application form accurately.

Remember to follow the specific guidelines of your chosen bank. Reach out to us for assistance, we, at FRR FOREX, specialize in aiding international students with financial processes to study abroad.


In conclusion, the GIC Increase in Canada signals a major financial shift for students. To navigate this change successfully, engage in careful financial planning using tools like the Student GIC Calculator 2024

Stay informed about the pros and cons of the Guaranteed Income Certificate. As Canada adjusts its immigration rules, stay vigilant. Explore options that align with your educational aspirations and financial capabilities. 

Ready to master your financial journey in Canada? Partner with FRR Forex today for expert guidance and seamless transactions.


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