Introduction: What’s the Difference and Why It Matters
For many Indian students, receiving an acceptance letter from a university abroad – especially in countries like Germany or Canada – marks the beginning of an exciting chapter. But before lectures begin and new friendships form, there’s an essential financial step that must be completed: proving to immigration authorities that you can support yourself while studying.
This requirement is a core part of the student visa process in several countries. Immigration authorities want to be certain that international students can manage their living expenses independently, without falling into financial difficulty or relying on public assistance.
To standardise this requirement, countries like Germany and Canada have introduced formal financial instruments:
- A Blocked Account (Sperrkonto) in Germany
- A Guaranteed Investment Certificate (GIC) in Canada
These systems are specific forms of proof of financial means – each designed to give governments confidence that a student has access to a fixed amount of money throughout their stay. While they serve the same purpose, they differ significantly in terms of how they are set up, how the funds are accessed, and what documentation is required.
If you’re planning to study in Germany or Canada, understanding the difference between a Blocked Account and GIC is not just helpful – it’s necessary.
What is a Blocked Account (Germany)?
If Germany is your chosen study destination, you’ve likely come across the term Blocked Account — or Sperrkonto in German. It’s one of the most important financial steps in securing your student visa (Visum zu Studienzwecken).
What exactly is a Blocked Account?
A Blocked Account is a special type of bank account required by German immigration authorities for international students. The account is “blocked” because the total deposited amount cannot be withdrawn freely – instead, a fixed monthly allowance is disbursed to you after arrival in Germany.
This structure is meant to ensure that students budget responsibly and do not exhaust their funds early in their stay.
Why is it required?
To obtain a student visa for Germany, Indian students must demonstrate proof of financial means. The German government wants to be certain that international students can cover their living expenses without relying solely on part-time jobs or external financial support.
By requiring a Blocked Account, they guarantee that:
- You have the minimum living expenses secured for the duration of your stay.
- You won’t need to apply for emergency aid or government support.
- You’ll have structured access to funds that mirrors a real-life monthly budget.
How much do you need to deposit into the Blocked Account?
As of January 2025, the minimum amount required in a Blocked Account is:
€11,904 for 12 months – Which breaks down to €992 per month
This figure is based on official estimates of a student’s average monthly cost of living in Germany – including:
- Accommodation (student dorms or shared housing)
- Food and groceries
- Health insurance premiums
- Transport (semester ticket or public transit)
- Study materials and other essentials
Note: If your course is longer than one year, you may be required to deposit more or provide proof of funding for subsequent years later on.
How does it work in practice?
The overall process looks like this:
- Choose a recognized provider
You can open a Blocked Account through approved providers such as:
- Expatrio
- Fintiba
- Coracle
- Deutsche Bank (for more traditional banking, though slower)
- Expatrio
- Open the account and deposit funds
Transfer the required amount from India. This is typically done via international wire transfer (SWIFT), and you may need to account for exchange rates and bank fees.
For Indian students, Matrix Forex can assist with the transfer, offering competitive exchange rates, RBI-compliant service, and step-by-step guidance – helping you save money and avoid delays. - Get the Blocked Account Confirmation
Once the funds are received, your provider will issue an official confirmation letter. This document is essential and must be submitted with your German student visa application at the VFS or embassy. - Activate the account after arrival in Germany
Once you land and complete your local registration (Anmeldung), you’ll activate the account and start receiving monthly payouts, usually up to €992 per month. - Use the monthly allowance for your living expenses
This ensures you maintain a balanced budget during your studies and helps you stay financially independent.
Additional tips:
- Processing time: Transfers from India can take 2–5 working days. Start the process early, especially during peak admission seasons.
- Extra buffer: Many students choose to add a little more (e.g., €200–€500) to account for exchange losses or initial setup costs.
- Health insurance integration: Some providers (like Expatrio or Fintiba) offer bundled packages including health insurance and support letters – which can simplify your visa paperwork.
What is a GIC (Canada)?
Canada uses a slightly different system compared to Germany: the Guaranteed Investment Certificate (GIC). While the purpose is the same – proving you have enough funds to support yourself during your studies – the format is more like a short-term investment.
Why is it required?
The GIC is a mandatory financial requirement under the Student Direct Stream (SDS) — a fast-track study permit option available to students from India and other eligible countries.
By purchasing a GIC, you demonstrate to Canadian immigration authorities that you have sufficient funds for your first year in Canada and won’t need to rely entirely on part-time work or public aid.
How much money is needed?
As of September 1, 2025, the minimum amount required to cover living expenses for a Canadian study permit application is CAD 22,895 for a single applicant. This federally mandated amount applies to all provinces except Quebec. Always check the IRCC website or your university’s guidance before initiating your transfer.
How does it work in practice?
- Choose a participating bank
Select a Canadian financial institution approved to offer GICs under SDS. Popular options include:
- Scotiabank
- CIBC
- ICICI Bank Canada
- HSBC Canada
- Simplii Financial
- Scotiabank
- Open your GIC account and deposit funds
Transfer CAD 22,895 or more from your Indian bank account. This must be done before your visa application, as the GIC certificate is required for your SDS submission.
Matrix Forex can help you complete this international transfer efficiently and RBI-compliantly, offering competitive exchange rates, help with documentation, and personalized support – ensuring your GIC deposit arrives safely and on time. - Get your GIC Certificate
Once the funds are received, your bank issues a GIC confirmation certificate. Include this document in your SDS visa application to Immigration, Refugees and Citizenship Canada (IRCC). - Receive money after arrival
Upon landing in Canada and completing identity verification, the bank will:
- Initial Payout: You get a large lump sum upfront (typically CAD 4,500 – CAD 7,000) for settling-in costs.
- The rest of the money is paid to you in equal monthly installments over the next 10-12 months
- Initial Payout: You get a large lump sum upfront (typically CAD 4,500 – CAD 7,000) for settling-in costs.
- Interest earned
Unlike Germany’s Blocked Account, a GIC accrues interest, which is added to your account balance — providing a slight financial boost.
Blocked Account vs GIC: A Head-to-Head Comparison
| Feature | Blocked Account (Germany) | GIC (Canada) |
| Type of Account | Bank account with restricted withdrawals | Investment certificate |
| Purpose | Proof of funds for a German student visa | Proof of funds for Canadian study permit (SDS) |
| Minimum Deposit | €11,904 | CAD 22,895 |
| Funds Release | Fixed monthly allowance (~€992) | CAD 4,500 – CAD 7,000 upfront + monthly/quarterly installments |
| Interest Earned | Usually none | Yes, small interest |
| Visa Requirement | Mandatory for most non-EU students | Mandatory under the SDS program |
| Key Benefit | Enforces monthly budgeting | Provides initial lump sum + interest |
Why Are These Systems Important?
For Indian students heading abroad, both Blocked Accounts (Germany) and GICs (Canada) serve a purpose far beyond just satisfying paperwork requirements. These structured financial systems are designed to protect students, support immigration processes, and provide reassurance for families back home.
Here’s why they matter:
Proof for the embassy
Both the German and Canadian governments require financial proof as part of the student visa application process. Without a Blocked Account or GIC, your visa will likely be delayed or denied. These accounts demonstrate that you’re financially capable of supporting yourself.
A built-in financial safety net
Upon arrival, you’re not scrambling to find money for rent, groceries, or transit. These systems ensure you start your academic journey with funds already in place, reducing stress during those crucial first weeks abroad.
Smarter monthly budgeting
By releasing money in fixed monthly amounts, Blocked Accounts and GICs help prevent overspending and ensure your funds last the entire year. It’s a great way to develop good financial habits while adapting to a new environment.
Peace of mind for your family
For parents and guardians in India, knowing their child has structured, secured access to funds abroad brings immense comfort. It reduces the need for frequent money transfers and ensures that unexpected expenses are less likely to derail the student’s plans.
Conclusion: Make the Process Easier with Matrix Forex
Studying abroad is a huge step — and while admissions, packing, and paperwork get most of your attention, your financial setup is just as important. Whether you need to open a Blocked Account for Germany or purchase a GIC for Canada, getting the money there securely and on time is non-negotiable.
That’s where Matrix Forex comes in.
We specialise in helping Indian students and their families:
- Transfer funds internationally at the most competitive exchange rates
- Complete GIC and Blocked Account payments smoothly and compliantly
- Avoid delays and high bank charges with RBI-authorised support
- Get guidance on documentation and remittance procedures under FEMA/LRS
With our personalised service, transparent rates, and fast processing, you can focus on preparing for your new life abroad – while we handle the financial logistics.Ready to start your journey?
Contact Matrix Forex today to speak with a remittance expert and get support tailored to your study destination.