Blocked Account vs. Proof of Funds
Two ways to prove you can afford to study abroad. One is mandatory in Germany. The other is used almost everywhere else. Here's how they work—and which one you need.
If you are applying for a student visa, you will almost certainly be asked to prove that you have enough money to cover your tuition and living expenses. But the exact method of proving this varies dramatically by country. In some places, you simply print a bank statement. In others, you must open a special restricted account and deposit a large sum months before you apply.
This creates a lot of confusion. Students applying to Germany wonder if they can just show their parents' savings. Students applying to the UK wonder if they need a blocked account like their friends going to Germany. And students applying to the USA often have no idea what the difference is at all.
In this article, we break down the two main systems—blocked accounts and general proof of funds—so you know exactly what your destination requires and how to prepare.
What Is a Blocked Account?
A blocked account (in German, Sperrkonto) is a special bank account where you deposit a fixed amount of money that you are not allowed to withdraw all at once. Instead, the bank releases it to you in monthly installments after you arrive in the country.
The idea is simple: immigration authorities want to be absolutely certain that you have enough money to support yourself for your entire first year. By forcing you to deposit the full amount in advance—and then rationing it out month by month—they eliminate the risk that you will spend all your money in the first semester and become unable to pay rent or buy food.
Germany is the best-known country that requires a blocked account for most non-EU student visa applicants. As of 2024, the required annual amount is €11,904, which works out to monthly releases of €992. This money is meant to cover your rent, groceries, transport, health insurance, and personal expenses.
How a German Blocked Account Works
- Open the account with an approved provider (Expatrio, Fintiba, Coracle, or Deutsche Bank) before applying for your visa.
- Deposit €11,904 into the account. Some providers charge a setup fee of €49-€149.
- Receive a confirmation letter from the provider. This is what you submit with your visa application.
- After arriving in Germany, open a local German bank account and activate your blocked account.
- Receive €992 per month automatically transferred to your German account for 12 months.
What Is Proof of Funds?
Proof of funds is a much broader concept. It simply means showing documentation that proves you have access to enough money to cover your studies. Unlike a blocked account, there is no special account structure required. The money can sit in a regular savings account, come from a sponsor, or be provided through an education loan.
Countries like the United Kingdom, the United States, Canada, and Australia all use some form of proof-of-funds system. Each has its own rules about how much you need, how long the money must be in your account, and what documents are acceptable.
United Kingdom
You must show that your tuition + living costs (typically £9,000-£13,000 for London, £7,000-£10,000 outside London) have been in your or your sponsor's account for 28 consecutive days before applying.
United States
You must prove funds for your first year only. Amount is listed on your I-20. No specific holding period, but bank statements should show liquid funds. Loans and sponsors accepted.
Canada
You need a Guaranteed Investment Certificate (GIC) of C$20,635 or proof of funds in a bank account. The GIC is similar to a blocked account in that it releases money in installments.
Australia
You must show funds for one year of living costs (A$24,505) + tuition + travel. No blocked account required, but bank statements or loan sanction letters must be genuine and accessible.
Blocked Account vs. Proof of Funds: Side-by-Side
Pros and Cons of Each System
Blocked Account Advantages
- ✓ Guaranteed financial security for your first year
- ✓ Highly trusted by immigration authorities
- ✓ Forces disciplined monthly budgeting
- ✓ Usually accepted without extra questions
Blocked Account Disadvantages
- ✗ Large upfront cash deposit required (€11,904)
- ✗ Setup fees add to your costs
- ✗ No flexibility to access emergency lump sums
- ✗ Education loans generally cannot be used directly
Proof of Funds Advantages
- ✓ No special account needed
- ✓ Education loans and scholarships accepted
- ✓ Full control over your money
- ✓ No setup fees or monthly transfer delays
Proof of Funds Disadvantages
- ✗ More scrutiny if documents look inconsistent
- ✗ UK requires strict 28-day holding period
- ✗ Large last-minute deposits can trigger suspicion
- ✗ No built-in budgeting discipline
Which One Do You Need?
The answer depends entirely on your destination country.
If you are going to Germany: You almost certainly need a blocked account. There are very limited exceptions (for example, if you hold a full scholarship that covers all living costs, or if you have a German relative who guarantees support through a specific legal process). For 95% of applicants, opening a Sperrkonto is the standard path.
If you are going to the UK: You do NOT need a blocked account. Instead, you need to follow the 28-day rule: the required funds must sit in a recognized bank account for 28 consecutive days before you submit your visa application. Read our detailed UK Proof of Funds Guide for the full breakdown.
If you are going to the USA: You do NOT need a blocked account. You simply need to show liquid funds equivalent to your first-year costs as listed on your I-20. Bank statements, loan sanction letters, and sponsor affidavits are all acceptable.
If you are going to Canada: You have a choice. The Student Direct Stream (SDS) requires a Guaranteed Investment Certificate (GIC), which functions similarly to a blocked account. The regular stream allows you to show bank statements instead.
Plan Your Visa Financial Proof
Use our cost calculator to find out exactly how much money you need to show for your specific destination and university.
Calculate My Study CostsLast updated: April 14, 2026
Sources: German Federal Foreign Office, UKVI financial requirement guidelines, ICE.gov