WHAT IS A BLOCKED ACCOUNT?

 According to the foreign country rules and regulations, the students need to open a blocked bank account to fulfill their living expenses and complete their education in Germany. A blocked account means that the money deposited in the bank cannot be withdrawn before the arrival of the candidate in Germany. It is a medium through which the candidate covers the expenses that include accommodation, travel pass, food, etc. A blocked account is a closed account that comes with the standing instruction on the maximum amount that can be withdrawn by the student and it is a compulsory requirement. 

Depending on your nationality, the following documents have to submit before opening a blocked account in Germany:

• Application Forms
• Valid Passport
• Admission letter from the university
• A bank statement of your income
• A prepaid fee

 HOW TO OPEN A BLOCKED ACCOUNT IN GERMANY?

 The procedure to open a blocked account is:

• Complete your application form by filling in all the relevant details.
• Get your valid passport.
• Collect the necessary documents and arrange an appointment with the German Embassy.
• Legal formalities would be done by the embassy and sent to the bank for further processing.
• The bank will mail you the confirmation of the blocked account and will attach the details.
• You have to deposit the money and the bank’s initial fees.
• At the end, the balance of your account will be confirmed by the bank.

IS IT POSSIBLE TO STUDY IN GERMANY WITHOUT A BLOCKED ACCOUNT? 

Yes, it is possible to study in Germany without a blocked account if it can be proved that you have sufficient funds which could be backed by providing one of the following documents: 

• A document showing the parent’s income and financial status.
• Scholarship Certificate from a recognized scholarship provider.
• Letter of Commitment- Through this document, a permanent resident of Germany (a relative or a friend) can guarantee they will cover all your expenses during your time as a student.
• A bank guarantee.

GERMANY BLOCKED ACCOUNT AMOUNT FOR 2024

• The amount that needs to be deposited into the German blocked account when a person applies for a student visa to Germany is €10,332 or 861€ per month for a stay of up to 12 months. This has become applicable from 1st January 2021. This amount has not undergone any changes.
• This amount should be per the BAföG, a state funding for students in Germany. However, it can sometimes vary and should be in consultation with your embassy/consulate in advance.
• It is proof of your financial means (Finanzierungsnachweis) to get a student visa and is set on the minimum amount of money that is to be deposited in the blocked account.
• It should be kept in mind that the required monthly minimum is the maximum amount that can be withdrawn or transferred by the account holders within a defined period except when someone has paid more than the demanded minimum blocked amount.
• Another important document that has to be submitted to get a student visa in Germany is health insurance. Some providers offer both a blocked account and health insurance package to make the process easier for students.

GERMAN BLOCKED ACCOUNT PROVIDERS

 To get through the process of obtaining a student visa, a blocked account is necessary to approve your application. So, without any delay, one has to contact the blocked account providers that are authorized by the German Federal Foreign Office and that comply with the requirements of the Federal Ministry of the interior. In the past, opening a Blocked Account in Germany was time consuming but with the latest technology, it can be done with the help of digital providers who do the same task in the least time. 

Pre-requisites for a Blocked Account Provider

•  The blocked account providers need to be authorized and have to go through a verification process by Federal Foreign Office to obtain a license to provide services to students.
• The blocked account should be opened with a bank that is allowed to do banking services in Germany.

Therefore, to avoid any future troubles, you should perform all the necessary examinations and double-check with the authorities before selecting a provider so that you can further move ahead on opening a blocked account. Earlier the forms were accepted in physical form and the money to be deposited in the account was accepted in Euro currency. But with the digital medium, the forms are received online and various currencies are now accepted by the authorities. In case of rejection of visa, the providers refund your money which usually takes a week. They will transfer all deposited funds along with associated fees which were given for opening a blocked account.

Name of known Blocked Account Provider

•         Coracle
•         Expatrio, and
•         Fintiba

 HOW TO TRANSFER MONEY TO THE BLOCKED ACCOUNT IN GERMANY?

The first and foremost step you need to go take when opening your German blocked account is to deposit the required money. The moment the money is transferred into your account in Germany, the other moment you will receive a confirmation that your blocked account has been opened with the amount you have deposited. if the money is to be transferred to a blocked account in Germany, you must get the right information before making any transfer decision. In the beginning, one wants to have an option that is simple, efficient, as well as budget-friendly. In today’s times, it is easier to send and receive money than the earlier times, and banks are no longer the only place through which you can transfer your money from one country to the other.

The money can be transferred to your blocked account in Germany through one of the following methods:

• International Bank transfers can be done through the online method or personally as well. This method is a little expensive and one must check that all the expenses could be covered with the deposited amount. Otherwise, you may not receive your account information letter. In case of international bank transfer you must furnish the following data:

1. Recipients’ name, address, and account type.
2. Recipients’ bank name and address.
3. Recipients’ account number or International bank account number(IBAN)
4. Recipients’ Bank BIC/Swift code

• Money Transfer Companies- this is cheaper than the previous method. The companies that aid the process are Wise, Western Bank, MoneyGram, and PayPal. They charge lesser fees and provide more options in terms of exchange rates in comparison to banks. But you must be careful while selecting these providers. 

HOW TO WITHDRAW MONEY FROM THE BLOCKED ACCOUNT?

 You can withdraw money from your blocked account after you get settled at the registered address in Germany. But, you must remember that you can’t directly have the access to your blocked account in Germany. You can only withdraw your money after opening an international student bank account in Germany, where your blocked money will be transferred every month. At present, you’re eligible to withdraw a maximum of €861 per month unless you’ve deposited more money than the required minimum amount. 

 To summarize, the purpose of the blocked account is that the German government needs to have proof that you can cover your expenses while staying in the country. You don’t have to  proof about the source of money in the case of Expatrio. In the case of Deutsche Bank, you need to furnish the origin of your resources. After the money is transferred you will receive the confirmation letter and after you go to the country and confirm your registered address, you can withdraw the amount. You can register your residence in Germany at the Resident’s Office Registration. The bank requires an address so that it can send details of your blocked account once you arrive in Germany.

Hope the article will clear all your doubts regarding the blocked account.