Germany Blocked Account Vs Canada GIC Account? What are the alternatives of these?
Canada and Germany are both developed nations; one is known for natural beauty, amazing landscapes, and multiculturalism, whereas the latter is known for automobiles, free education, and the strongest economy in the European region. Both countries are gaining so much popularity in front of the global platform; no, it is not only for the elections of 2025 but also for recent changes in the overseas education market. The international students’ community is in an awkward situation as to which country to choose for further studies, Is it Canada or Germany? The benefit for the international student community or immigrants is that both countries are facing aging issues, a lack of skilled workers, neutral economic growth, and so on. So it is high time to decide in which country you can get the maximum return on investment because,, of course, in the end, money matters for most of us.
While planning to go abroad for further studies, money matters ALOT and two major costs are tuition fees and living costs. The tuition fee is the study expense or fee structure. On the other hand, living costs refer to the amount of money needed to pay for necessities such as housing, food, healthcare, transportation, education, etc., in a particular area. It varies from country to country and totally depends on one’s lifestyle. country, state, etc. Whenever any individual is willing to go abroad for further studies or different purposes, such as work visas, the local authorities ask to maintain some sum of funds for survival. In Canada and Germany, international students need to show the living cost via GIC and a blocked account. Though Canada has scrapped the SDS visa category lately yet the students need to open a GIC account to show financial stability to the authorities. Let’s understand the blocked account and GIC.
1) Blocked Account
The blocked account, which is also known as Sperrkonto in German, is a type of special bank account that is used by international students and individuals on job-seeker visas to proof financial stability. The amount for a blocked account is €11,904 for a year where the money is deposited in the account and then the account gets blocked and can not be accessed fully at once; rather a fixed monthly withdrawal can be done, which is around €993. The German government has recently increased the blocked account amount by 1st September 2024, amounting to €11,904 from the previous €11,208. Experts believe the increment is based on the rise in living costs in Germany. Please note for EU international students, opening a blocked account is not necessary, but the countries (Japan, Canada, Australia, and the USA) that do not need German visas to enter are required to open a blocked account for financial proof of funds during their stay.
Popular Blocked Account providers
- ICICI Bank
- Coracle
- Fintiba
- Expatrio
- Studely
Alternatives of Blocked Account
Though a blocked account is a prerequisite document for student visa filing in Germany, it shows that the international student has enough funds to survive in a foreign land yet there are some alternatives available by which the students do not have to open a blocked account. It is very important to check these options as well, Some of the alternatives are –
a) Scholarships
Scholarships are the best way to study in any country and put very little financial burden on your shoulders. Germany is also known for lucrative scholarships. Some of the scholarships are provided by the institutions whereas some of these are offered by government bodies such as DAAD (German Academic Exchange Service). Through scholarships, the candidate can show sufficient funding. The scholarships must cover your living costs entirely.
b) Sponsorship
German authorities allow the family or relative of the candidate, who is living in Germany, to sponsor the living costs of the student. The candidate’s sponsor has to make a formal request at the Ausländerbehörde or Immigration Office for sponsorship. The request should state that the individual will cover the candidate’s living expenses. This request document is known as Verpflichtungserklärung or Declaration of Commitment.
c) Government Funding
The exemption can also be made for blocked accounts where the student’s study is funded by the government or local authorities.
d) Student Loan
A large chuck of students also opt for student loans for their further studies. Since the education loan covers everything, it can also serve as proof of funds for living funds.
e) EU Students
A blocked account is a requirement for all international students, but if you belong to the European Union region then there is no need to open a blocked account. all the students from european union are exempted from opening a blocked account.
2) GIC
A Guaranteed Investment Certificate, or GIC, is a type of account that the student who is willing to go to Canada for further studies and opt for the Student Direct Stream visa category. The main purpose of opening a GIC account is to show enough funds to survive in Canada for one year. The Canadian government has increased the amount under GIC from 10,000 CAD to 20,635 CAD by 1st Jan 2024. The Canadian government needs international students to show that they have enough financials to cover their living expenses for a year during their studies in Canada. It used to be the prerequisite condition for the SDS visa category; since the Canadian government has recently scrapped the SDS category, it is no longer a prerequisite, but it is always advisable to open a GIC account as it denotes a robust profile and increases the chances of visa approval.
Popular GIC providers
- Scotia Bank Student GIC program
- CIBC Interntional student GIC program
- ICICI Bank Canada GIC program
- RBC student GIC program
- SBI Canada Bank GIC program
Alternatives of GIC Account
However, the government has scrapped the SDS category, which is for limited countries such as India, China, Venezuela, Pakistan, etc. Opening a GIC account is still very important, as it shows that international students have enough funds to survive in foreign lands during their studies. There are some alternatives as well for GIC, which can cover the living cost of the students. Some of them are –
a) Education Loan
Taking an education loan is a very common practice while studying abroad since education loans not only cover the tuition fee but also the living costs. It means the student has enough funds to survive during the study period.
b) Scholarship
There are many institutions in Canada that offer amazing scholarships that not only cover tuition fees but also living expenses.
c) Bank Statements
A solid financial background is required to show the living cost. 4-6 months of bank statements or fixed deposits can be provided to show the living cost on Canadian soil.
While studying abroad, living costs is an inevitable factor, and there is a reasoning behind also that international students need to maintain enough funding to satisfy the needs of the visa authorities. The more financial stability would be there, the more chances would be there for the visa approval rate. Failure to comply with living cost criteria can jeopardize the chances of visa acceptance. so next time when you plan to study in Germany or Canada, you know how important it is to show the blocked account and guaranteed investment certificate.
Check out the two pilot projects launched by the Canadian government to provide faster permanent residency
