Siddhi Bagwe
Beth Buczynski
Planning to apply for a Canadian study permit through the Student Direct Stream (SDS)?
You’ll now need to include a guaranteed investment certificate (GIC) for a much higher amount compared to previous years. The GIC requirement for SDS applicants increased to $20,635 in 2024.
Here’s some background on why the GIC requirement exists, and how to choose a GIC provider in Canada.
What’s changed?
In a January 1, 2024 press release, the Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, announced, “We are revising the cost-of-living threshold so that international students understand the true cost of living here. This measure is key to their success in Canada. We are also exploring options to ensure that students find adequate housing.”
The previous financial support requirement of $10,000 for individual applicants was not keeping up with the cost of living, adding undue strain on the arriving students’ budget. Minister Miller hopes the new $20,635 threshold will help protect foreign students from financial vulnerabilities.
Why is a GIC required?
The GIC for international students shows that you can support yourself and accompanying family members while you’re in Canada. While a GIC is a prerequisite for the SDS process, it’s an optional way to prove sufficient financial support for regular study permit applications.
When you buy an international student GIC, you deposit money with a financial institution, usually for a fixed term and rate of return. The minimum deposit for the GIC depends on your intended province or territory of study and the number of family members who come with you.
Nerdy Tip: A GIC is generally considered a low-risk investment. That’s because the principal and interest on most GICs are guaranteed, which is perfect for students who may be new to the country or investing.
How much deposit does a student GIC require in 2024?
As of January 2024, single applicants studying outside Quebec will need to show a minimum deposit of $20,635 in their international student GICs. Note that this deposit excludes your tuition and travel costs.
The GIC deposit requirements vary based on your situation. For more details, check the Government of Canada’s study permit page.
What if you can’t afford the GIC requirement?
If funding a $20,000 GIC isn’t possible, you can still apply for a non-SDS or regular study permit, provided you’re okay with a slower processing time. However, you’ll still have to prove to Immigration, Refugees, and Citizenship Canada (IRCC) that you can support yourself and your dependents.
Other acceptable proof of funds include:
- A bank proof of your student loan or education loan.
- A bank draft that can be converted to CAD.
- Receipts of your paid tuition and housing fees.
- A letter of funding from an individual, school or Canadian program.
Choosing a GIC
Many Canadian financial institutions offer GIC plans, often marketed as international student GIC programs. These programs usually include chequing and savings accounts, a choice of credit card and a GIC.
You can only access the funds when you arrive in Canada and set up a bank account at the same bank that issued your GIC. So before you buy a GIC, shop around to pick a banking plan that fits your lifestyle preferences and daily financial needs.
Here are some important considerations:
- Banking convenience: Does the bank have wide ATM coverage and branches in your province or territory of study? Having ATMs near your campus will save you a bunch of time and out-of-network fees. If you prefer online banking, make sure that the bank has online and mobile banking facilities.
- Savings: Choose a bank that gives you the most rebates or includes all the products and services to cover all your banking needs. These may include free money transfers, overdraft protection and more.
- Offers: Does the introductory offer complement your lifestyle? Check if you can meet the offer requirements without going overboard.
- Return on investment: Pick a bank that offers the highest interest rate on your GIC and helps your money grow.
- Minimum balance requirements: Student chequing and savings accounts generally do not require you to hold a minimum balance for fee rebates. But it’s best to scope out the account requirements in your GIC plan before signing up.
What happens if your SDS study permit is denied?
If your study permit is denied, contact your financial institution to request a refund of your GIC funds. The bank will refund the money to the original account you used to fund the student GIC, minus the handling or international wire transfer fees. However, you may be required to submit a proof of rejection or enrolment cancellation letter.
How to set up your student GIC
To buy a GIC for a SDS, you must meet the bank’s eligibility requirements. Generally, you need to:
- Be at least 18 years of age.
- Meet the SDS requirements.
- Be studying at a Canadian post-secondary designated learning institution.
You can apply for an international student GIC program on the financial institution’s website while you’re in your home country by:
- Submitting your GIC application to the bank online.
- Wire transferring your minimum required deposit and bank fees (if applicable).
- Using your GIC confirmation to support your study permit application.
Once you have your study permit and you arrive in Canada, you will be able to access part of your funds by opening a student bank account with the bank. You will subsequently receive regular instalments of your remaining principal amount plus any accrued interest on your GIC in your account. These monthly deposits should help you manage monthly living expenses.
The payment amounts vary based on your bank’s current interest rate. So, take your time to compare interest rates and benefits offered by the top Canadian financial institutions for international students to pick the right GIC package for your needs.
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