Things like affordable education, emphasis on critical thinking & practicality, and excellent infrastructure make Germany a prominent study abroad destination for international students.
However, they must prove their financial stability with a German-blocked account to get a German study visa. A German blocked account is a bank account used by international students to deposit an amount of money and block it till they arrive in Germany.
A blocked account is a bank account used by international students to deposit money that would cover their living cost for the first year in Germany. It is an important prerequisite for a Germany study visa. It is necessary for international students moving to Germany for language courses, diploma short-term courses, or any professional degrees. The bank account must be opened at a registered German bank via an online application.
Non-European students need to apply for a German-blocked account after receiving the admission letter from the university. There are various blocked account providers, and students need to compare all of them to choose the right service provider. The money in a blocked account cannot be withdrawn until the student arrives in Germany. It is a compulsory eligibility criterion for international students to prove that they can meet their expenses during their stay. The funds will be held in the student’s name, and it completely belongs to them.
Admission letter from a respective school, college, or university
Any national ID proof
Application form
Receipt of prepaid fee
Quick Facts About German Blocked Account
Let us take a look at some quick facts about a German blocked account to get a better understanding. These facts shed clarify on most doubts.
The minimum block account amount for Germany is €11,208. There is no maximum or upper limit.
Germany needs a blocked account only in the first year. However, if a student fails to provide enough evidence of financial resources for the second year, they’ll need a blocked account even in the second year.
A blocked account does not come with unlimited deposits and withdrawals. There are rules and regulations as to who can withdraw, when the withdrawal can take place, and how much money can be withdrawn.
Some of the best German blocked account providers are Deutsche Bank, Fintiba, Expatrio, and Coracle. Look for the most affordable option that offers a value package.
A blocked account is known as ‘Sperrkonto’ in German.
A blocked account can be opened within 24 hours. It does not take long if you choose the right bank.
The blocked account is approved and managed by the German Federal Foreign Office.
If your visa is rejected, the amount you deposited in the blocked account will be returned. There will not be any deductions apart from the fee paid to the account providers.
An international student can withdraw € 934 per month. This amount should be used for living costs, traveling, accommodation, food, and utilities.
After the money is deposited, the funds will eventually be transferred to a local branch near your university in Germany.
Once the account is opened, the respective bank will coordinate and send all the necessary details to the respective German Consulate. Without this information, students will not be able to apply for a German student visa.
Documentation is important. International students cannot apply for a German-blocked account without a confirmed admission letter from a college or university.
German Blocked Account: How Does It Work
Students initially deposit the required amount for one year to access the funds in their blocked account. Subsequently, one-twelfth of the total can be withdrawn for monthly living expenses. Typically, the monthly disbursement needs to be transferred to a conventional bank account with a German bank. The payout plan over the year is as follows:
To access the funds in your blocked account, you initially deposit the required amount for a one-year period. Subsequently, each month, one twelfth of the total can be withdrawn for living expenses. Typically, the monthly disbursement needs to be transferred to a conventional bank account with a German bank. The payout plan over the year is as follows:
Blocked Account Payout Plan
Amount Deposited
Remaining Amount in the Account
Before Visa Application
€11,208
€11,208
After 1 month
–
€10,274
After 2 months
–
€9,340
After 3 months
–
€8,406
After 4 months
–
€7,472
After 5 months
–
€6,538
After 6 months
–
€5,604
After 7 months
–
€4,670
After 8 months
–
€3,736
After 9 months
–
€2,802
After 10 months
–
€1,868
After 11 months
–
€934
After 12 months
–
€0
Some Popular German Blocked Account Providers
1. Coracle German Blocked Account
Coracle-blocked account opening is an affordable process. The initial application fee is €99, and the process is completely online.
2. Fintiba German Blocked Account
The Fintiba German blocked account opening process is less expensive and easier. If you open a blocked account with Fintiba, then you will need to pay an initial account opening charge of €89 and then a monthly maintenance fee of €4.90. The process is online, and opening an account takes only 15 minutes. This is a good choice for international students. However, students need to pay an extra charge after they arrive in Germany.
3. Expatrio German Blocked Account
Expatrio offers two packages, a normal blocked account package, and a value package. The normal blocked account just has one blocked account and no current account. However, a value package includes everything that an intentional student generally needs in Germany. It includes health insurance, benefits, and a free student bank account. It is an easy process and one of the cheapest options in Germany.
A blocked account in Germany comes with some nominal fees. The fee amount depends on the bank and the nationality of the international student.
For example, if one opens an account through Expatrio, the student will have to pay an initial set-up fee of €49 and a service fee of €60.
In our example calculation, we assume that you plan to stay in Germany for 12 months. At the end of the calculation, you will find the total amount you would have to transfer when opening your blocked account.
12 months x €934 =
€11,208
Set-up fee
€49
12 x €5 monthly bank charges
€60
Safety buffer
€100
Total amount
€11,417
There may be some additional charges for the verification of documents. Also, consider the minimal charges that you need to pay for the international transfer of the amount between the bank accounts. International transfers are chargeable.
Process to Open a German-Blocked Account
German blocked account processing takes a good amount of time, especially during the admission season. It is recommended to open an account before to avoid any delay. The following steps can help you open a blocked account in Germany.
Step 1: Choose a suitable service provider and make account on that website
Compare all the available blocked account providers based on the time taken for account opening, fees, and other prerequisites.
Step 2: Fill out the Application Form
Download the account opening form online from the official website of the account provider. Fill the PDF and apply online by submitting all the documents. The documents should be original and scanned.
Step 3: Deposit the fund
Now that your Blocked Account is opened, you need to deposit the required amount of money to your account.
Step 4: Receive the confirmation mail.
As soon as the funds are transferred, Expatrio will automatically send you an email to confirm that your deposit is accepted and your blocked account is now activated.
Step 5: Make an appointment at the German Embassy
As soon as you receive this email, you arrange an appointment at the German embassy. Print out the blocked account confirmation email because you need it at the embassy to prove your financial resources. That’s it! Once your Blocked Account is opened, you have completed one of the most important requirements to successfully get your student visa.
Documentation for German blocked account
The documentation varies depending on your nationality and the bank that you choose to get a blocked account from. German blocked accounts have different eligibility and document requirements as per the applicant’s native country.
Here are some of the common documents that you need to keep in the right order for the blocked account opening process:
Passport size photographs
Valid passport
An admission letter from a respective school, college, or university.
Any national ID proof
Application form
Receipt of prepaid fee
Is It Possible to Study in Germany Without Blocked Account
If you are planning to study in Germany, there is no way you can do it without opening a blocked account. A blocked account is needed for students coming from non-EU countries as proof that they can fend for themselves during their stay in the country.
If you are planning to study in Germany, opening a blocked account is a way to show your financial stability to live in Germany. There are some alternative ways to instead of opening a blocked account. They are:
Letter of commitment: It is a document with which the German resident assures that s/he will provide financial support to you during your stay in Germany.
Scholarship: To use this option as a complete alternative to the Blocked Account, students need to present a full scholarship certificate which is equivalent to 934 EUR per month from a reputable provider.
How to Transfer Money to Blocked Account in Germany
In order to transfer money to the Blocked Account in Germany, you need to first gather the correct information first. The second step is to find the reliable, simple, and budget-friendly option to make the transfer. Nowadays, it is simple as you need not rely only on banks to do the transfer. The two ways by which you can achieve your goal of transferring the money to the blocked account in Germany are as follows:
International Bank Transfer
Money Transfer Companies
International Bank Transfer
International bank transfers can be done online and offline. To start with, you need to furnish the following information:
The recipient’s name, address, and account type.
The name and address of the recipient’s bank.
The recipient’s account number or IBAN (International Bank Account Number).
The recipient’s bank’s BIC/SWIFT code.
This method of international money transfer can be a little expensive. The fees may vary from bank to bank in your home country. To assure yourself, it would be wise to check with the bank account and make sure that the amount you send will cover the minimum amount. It is only after this will the bank issue the confirmation letter required for your visa application.
Money Transfer Companies
The second option for international money transfer is through money transfer companies like Wise, Western Union, MoneyGram, and PayPal, which are relatively cheaper than traditional banks. Their processing fees are lower, and they offer more competitive exchange rates than banks. Some of the money transfer companies are as follows:
Wise
It offers low and transparent fees for conversions and provides fast, affordable, and efficient transfers, making it a more suitable transfer option than traditional banks. Through this pathway, the money is delivered within 24 hours or less, which is relatively convenient compared to the 3-5 working days through regular banks.
How to Withdraw Money From Blocked Account
After your arrival in Germany at your registered residential address, you can have an access to your blocked account. However, this will not be direct access as you think. In order to withdraw money from your account, you need to have an international student bank account opened where the money from your blocked account would be transferred every month. The maximum withdrawal from the student bank account is €934 per month.
Conclusion
As per the regulations, a German blocked account is a must-have official prerequisite for international students. It is proof of the financial stability of international students. The German student visa will be approved only when the international student has blocked the amount required to meet the cost of living in Germany. Students can apply for a German study visa once they have opened a blocked account. For any doubts and queries refer to the FAQs below or consult with the experts of upGrad Abroad.
Students do not have direct access to the German-blocked account. Instead, they need to open a student bank account at any German bank and transfer the amount to that account from the blocked account. The blocked amount will be transferred to the student’s bank account every month. The monthly transfer limit is €934. However, a student bank account does not have any withdrawal limit.
Do we get interest in blocked accounts?
No, a blocked account is not a normal bank account. It is not possible to get any interest for depositing money in the blocked account. However, when international students open a normal German bank account and transfer funds from a blocked account to a normal bank account, they can get interest.
Can a blocked account receive money?
A blocked account cannot receive money. Once a block account is blocked by a court mandate, no funds can be added until the mandate is released. Until the block is released, the account will not be operational.
Can I get a loan for a blocked account in Germany?
Secured education loans are available in Germany against blocked accounts. These are usually used by students who are likely to have financial constraints in the second or third years. The loan amount can be twice the amount in the blocked account.
How can I transfer money to a blocked account in Germany?
There are two ways to transfer money to a blocked account in Germany. One is international bank transfer, and the other is via money transfer companies. You need to find the right method that is easy, quick, and has low transfer charges.
How do I close my blocked German account?
You can close your blocked account with an official document known as ‘Sperrfreigabe’. Provide a blocked account closing confirmation to your blocked account provider. The closure will be processed within 7 working days, and you will get the blocked amount credited to your personal account.
Do I need to prove the source of the money when transferring money to a German-blocked account?
You need to open the blocked account by following the steps provided on the Expatrio website. Once you have opened the blocked account, it is then approved by the German Federal Foreign Office for German Visa. You need not prove the source of money when transferring the money to the blocked account.
Can I speed up the procedure of opening the German-blocked account?
The international money transfer takes up to 3 to 5 working days. Post the money transfer, your blocked account is opened, and the confirmation is sent to the account holder.
Where do I register my address for my blocked account?
Within two weeks of your arrival to Germany, you need to register your residence in Germany to the Resident’s Office Registration or Einwohnermeldeamt. This will open the communication channel between you and your bank, and your bank will use this address to send you details about your blocked account.
Neha Uppal is a passionate content creator and editor. She carries 7.5+ years of experience working with leading edutech companies where she worked as a Faculty, Community Manager, and Content Marketeer. At upGrad, she is helping out people keep informed about the scopes and opportunities of studying abroad via informational articles/blogs.
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