German Blocked Account For International Students in Germany (2023)

Under current law regulations in Germany, if you’re an international student from a non-EU or non-EEA country, you must prove you have the financial resources (Finanzierungsnachweis) to cover your living expenses in Germany.

Proof of financial resources is an important condition to get your student visa and your study residence permit.

Read this article for detailed information about opening a blocked bank account in Germany.

Quick Summary

• From 1 January 2021, the annual requirement that must be paid into the blocked account when applying for a visa is 10,332 euros.
• It is important to check the requested blocked amount with your local German authorities.
• Be aware that not all accounts are equally accepted by all authorities. Make sure that the provider you choose covers all of your needs.
• Security and acceptance should have a higher priority over saving a little amount of money on fees because, in the end, you could end up with a much higher bill if things do not go as expected.
• Only blocked accounts based on a fully licensed bank in Germany provide full deposit protection and comprehensive acceptance.
• The German blocked account opening processes differ slightly. Depending on the time you have until your visa appointment is due, we advise you to opt for the faster option.
• Most providers offer blocked account and health insurance bundles for carefree preparation.
• Overall, combining the above-mentioned factors makes the market leader Fintiba the favourite choice of international students.

What is a Blocked Account?

It’s known as a “blocked account” because the money deposited into the account cannot be withdrawn until the account holder arrives in Germany.

The German blocked bank account (Sperrkonto) is designed to serve international students and job-seekers as proof of financial resourcesfor living in Germany for a year and is a requirement when applying for a German student visa or a student residence permit.

Even though there are other ways of showing one’s financial standing, the blocked account is the most common among international students.

By allocating a certain amount of money (determined by the German government)to the blocked account, a person willing to reside in Germany for a period of time testifies that he or she can handle living and other expenses during that time.

Is It Possible to Study in Germany Without a Blocked Account?

Studying in Germany without a blocked account is possible if you can prove that you have sufficient funds by providing one of the following:

1. A document of your parent’s income and financial status.
2. Scholarship Certificate from a recognized scholarship provider.
3. Letter of Commitment (Verpflichtungserklärung): 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.
4. A bank guarantee.

Do I Need a Blocked Account to Study in Germany?

To check out if you need a blocked account to study in Germany, use the checker below:

Germany Blocked Account Amount for 2022

From1 January 2021, the amount required to be deposited into the German blocked account when applying for a student visa to Germany is €10,332 or 861€ per month for your planned stay (up to 12 months).

This amount is based on the BAföG, a state funding for students in Germany. However, it can sometimes vary and should be agreed upon with your embassy/consulate in advance.

This value sets the minimum amount of money required to be deposited in the blocked account, so you can prove your financial means (Finanzierungsnachweis) to get a student visa.

It is also important to know that the required monthly minimum serves as a maximum amount that can be withdrawn or transferred by the account holders within a defined period of time unless someone has paid more than the demanded minimum blocked amount.

Another important aspect of getting a student visa in Germany is health insurance. Some providers offer both a blocked account and health insurance bundle to make the process easier for students.

German Blocked Account Providers

There are a few different German blocked account companies, so it is not easy to decide which one is the best. Here are some of the most popular blocked account providers in Germany:

• Deutsche Bank
• Fintiba
• Expatrio
• Coracle

We have compared various criteria that play an important role in the selection process: acceptance, safety, fees, process, usability, support (which are also required to obtain a visa) and additional services. In the following overview, we guide you through the different categories and compare the current four major blocked account providers in the market.

Acceptance

Until a few years ago, a German blocked account was only offered by Deutsche Bank, a very renowned, fully licensed German bank. The incumbent provider offers the oldest solution, but in many aspects, it is based on outdated processes and technologies that are not meeting today’s expectations anymore. The blocked account opening is a manual process that requires in-person verification in your local embassy and physical sending of documents worldwide. You must expect high fees and a long waiting time combined with a lot of paperwork.

Since 2017, three more established providers have entered the market, offering online solutions for blocked accounts, as well as health insurance and other services. Most of these blocked providers don’t act as a bank themselves but work with a partner bank or a financial service provider.

While German embassies abroad accept different types of blocked accounts, the local foreign offices in Germany act according to the German Residence Act. This requires in its administrative regulation that the blocked account must be held at a fully licensed German bank to obtain a residence permit for Germany. This is important if you need to extend your visa after arrival in Germany for the time of your studies here or in case you plan to stay longer.

Here is a comparison of the most popular blocked account providers in Germany:

To avoid problems with your residence permit or the need to open a second blocked account after arrival in Germany, students save hassle when choosing Deutsche Bank or Fintiba.

For minors, the selection of providers is more limited. Students that do not want to accept the long processing times of Deutsche Bank can alternatively go with Coracle.

Safety

When depositing your funds, you want to make sure that your money is in good hands and that the service provider you choose is safe, reliable, and secure. Due to the difference in the structures of the blocked account solutions, different protection standards apply. In addition, each provider has added different levels of security to their product.

As Deutsche Bank and Fintiba are the only blocked accounts based on a full banking license and the respective additional safety measures, they are considered the options with the highest security standards.

For your own security, it is crucial to open the account in your name and by yourself (not by a third party) to meet the legal requirements.

Blocked Account Fees

The existing blocked account offers differ slightly in their fee structure.

Please bear in mind that a low price does not necessarily mean the best value for money, as other important aspects may be compromised. When so much money is at stake, it is sometimes advisable to invest a little more and thus in better quality. In terms of fees, Expatrio currently offers the cheapest option in the market regarding the set-up fee. If you consider the entire costs for a one-year, Coracle appears to offer the most affordable option.

Speed and Ease of Opening a Blocked Account

Preparing the requirements for your stay in Germany can sometimes stretch on for a long time. For most students, the speed of the process is very critical to receive the required documents for the upcoming visa appointment, which requires a fast application and digital processing. In this regard, however, the providers also differ in terms of handling, speed, and transaction options.

In terms of speed, Fintiba is the fastest for all customers as they go through an automatic verification process. With its 10-minute opening time, fast transfer options and least requirements for setting up monthly withdrawals and accessing the money, it is currently considered the fastest provider in the market. Expatrio and Coracle also offer fast solutions. The big benefit of Deutsche Bank is the integrated current account, which means you do not have to open a separate current account like with the other providers. However, it comes with a much more cumbersome overall blocked account opening process. All in all, the advantages cannot make up for the disadvantages that come with it.

Usability

Handling all your processes can sometimes be tiring, so you must have all processes and documents at hand in one place, services are fully digital, and all steps can be done hassle-free without any inconvenience. The different providers provide different functionalities, which impact the usability of the service.

All the providers except for Deutsche Bank offer a fully digital service to open your blocked account. However, Fintiba is currently the only provider that offers its own app in which all processes are streamlined and can be handled easily and quickly. In addition, they have integrated a chatbot on the site, with which simple enquiries can be answered within minutes. Furthermore, the providers differ in the number of transfers. At Deutsche Bank and Fintiba, the number of possible transfers is limited, whereas, at Coracle and Expatrio, it is possible to transfer the blocked amount in several transfers.

Support Offered by Providers

Bearing in mind the integration of the blocked account opening into the visa application process and banking regulations, it is hardly surprising that questions will often arise about individual steps, products or special circumstances. Matters are often urgent, as they are mostly visa-relevant, so prompt and professional replies will be crucial for you.

Every provider offers customer service with small variances in the setup. All providers state quick response times, but customer service levels are not always met, especially in peak times of visa applications. Expatrio, for example, is committed to reacting quickly and processing requests within 24 hours; according to experience reports, though, this service does not always work smoothly.

Customer support is an essential criterion when selecting a blocked account provider. Due to the dependencies of the visa process, the need to get in contact with a support employee is much more frequent than you might be used to from other banking processes. Thanks to the focus on blocked accounts, Coracle, Expatrio and Fintiba have dedicated support for the products and can help specifically. In comparison, Deutsche Bank is a big organization where blocked accounts represent a small part of the business and support processes are not built around it.

Of the former three providers, Fintiba is a market leader and – due to the size and age of the company and the customers and countries served — the most experienced one to deal with specific issues that might arise during the process.

How to Open a Blocked Bank Account in Germany?

Opening a blocked bank account in Germany is as easy as the following steps:

1. Choose the provider.
2. Apply online for your blocked account.
3. Download and fill the pdf application form(which only applies to Deutsche Bank).
4. Seek proper legalization at the German embassy(only if you’ve chosen Deutsche Bank).
5. Deposit funds.
6. Get your blocking confirmation.

What documents are required for opening a German blocked account?

The list of required documents to open a blocked account may vary depending on your nationality and the bank account provider you choose.

With Fintiba, for example, you would only need an ID card or passport to register and create your account, and it will normally take less than 10 minutes to have your blocked account ready for a transfer.

With Deutsche Bank, however, you will need these documents to open a blocked account in Germany:

• An application form
• Your valid passport
• The admission letter from your university
• A bank statement of your income
• A prepaid fee

Health Insurance

As it is essential to have sufficient health insurance coverage and financial proof to receive a study/language visa, all blocked account providers also provide health insurance packages, except the Deutsche Bank.

As the providers differ in their packages, get to know the difference in the requirements beforehand to prepare your application documents correctlyand increase your chances of getting a visa or residence permit in time. The importance ofstudent health insuranceinGermanyis twofold. It not only covers you in situations requiringmedicalassistance, but it is also an essentialrequirement to be granted astudy visaforGermany. The law inGermany requireseveryone to havehealth insurance, includinginternational students.

Please be aware that there are important differences in the health insurance you need to provide. The health insurance you need to present upon entry, and the insurance you need for your stay in Germany are two different types. Private health insurance offers a solution for visa applicants that can easily be taken out from abroad. You will find them referred to as “travel” or “incoming” health insurance.

In case you choose the blocked account plus health insurance packages of the providers, in most cases, these would also include travel health insurance. For the stay in Germany, most students are eligible for the government health insurance scheme. However, the right to join depends on the type of university and your age.

If you are not eligible for public health insurance, you need to take out private health insurance for your enrollment at the university, as well as to obtain a residence permit. Additionally, private health insurance is required if you take part in preparatory courses such as Studienkolleg or language classes before starting your studies.

The different health insurance packages cover the required prerequisites for obtaining the visa, residence permit and enrolling at a German university. Insurance partners are all renowned in the market and offer comparable services. As the partner of Expatrio and Coracle, TK is slightly cheaper than DAK in the Fintiba Plus package. Fintiba can score with the deepest technical integration and, therefore, the most automated solution. Coracle’s user experience lags behind the other two.

Normally students would choose their blocked account provider in the first place and then decide to opt for an insurance package or not. We recommend getting the insurance together with the blocked account right away, so you save money and hassle as all documents are provided before arriving in Germany, and you would have fewer things to deal with after your arrival.

Additional Services

Most providers do not limit their offered services to blocked account and health insurance. They provide you with a wide range of additional helpful services related to your visa and daily life in Germany. Starting with general information about working and living to German learning offers, housing services and additional insurances. Most of these services are included in the price, so we advise you to check them all out and take advantage of them. However, Expatrio and Fintiba are the only providers who offer additional free services on top of blocked account and health insurance solutions.

Conclusion

There are many factors to consider when choosing the right blocked account provider for you. First and foremost, when such a large amount of money is involved, the most important aspect is security. This should be more important than cheap holding costs.

Furthermore, convenient processing is a great facilitator of the whole process. When choosing a provider, make sure that you have all the necessary information in one place, that you can complete the necessary steps quickly and that you always have transparent access to your data. Fintiba enables this by providing its customers with an app to receive push notifications whenever they need to complete the next step.

In addition, the time you need for the whole process also plays a big role. Many students are often under time pressure when it comes to preparing for the visa deadline, many pay attention to a fast account opening process. In this respect, all providers are very fast. However, many also forget that they need to access their money in Germany as quickly as possible to pay their expenses. As far as that is concerned, Fintiba has minimized the steps you need to take so that you have your money quickly at your disposal.

An integrated health insurance offer further facilitates the process. For this reason, we always recommend that you choose an offer consisting of a blocked account and health insurance, as this saves you money and allows you to handle two requirements for your stay at the same time.

Consequently, if you want to choose a provider that fulfils the above criteria and offers the best combination of security, speed, acceptance, and service, we recommend you go with Fintiba as the market leader and the favourite option among international students.

We hope that this guide can help you make an informed decision and ensure that your visa procedure works smoothly. Have a great start in Germany!

When is the best time to open your blocked account in Germany?

International students often complain that the confirmation of their blocked account being opened takes more time than it normally should. Other than the bureaucratic procedures that often make this process longer, the reason behind this delay can also be the timing of your application.

There are times when banks receive many applications from international students or are overloaded with their regular work. This may lead to a delay in the opening of your Sperrkonto.

The good thing is German universities obtain a large number of applications and cannot go through them at the same time. You can gain an advantage and be well ahead in time than other successful applicants receiving their admission letter later on.

As such, we highly recommend you start the procedures as soon as you get your admission letter. Until that time, you should have made up your mind about which path you will take to open your blocked account so you won’t lose time deciding.

How long does it take to open a blocked account in Germany?

The time it takes to open a blocked account in Germany depends on factors like your nationality, the provider, the workflow of the German embassy in your home country, your paperwork, etc. If everything goes well, your blocked account should be ready within a week from submitting your application.

For example, opening an account at Fintiba in most cases takes less than 10 minutes with automated AI identification. Naturally, missing documents may cause long delays and may even lead to an ultimate decline.

How to Transfer Money to the Blocked Account in Germany?

One of the steps you need to go through when opening your German blocked account is to deposit the required money. As soon as the money is transferred into your account in Germany, you will receive a confirmation that your blocked account has been opened with the amount you have deposited.

If you want to transfer money to a blocked account in Germany, you must get the correct information before making any transfer decision. Initially, you want to find an option that is simple, efficient, as well as budget-friendly. Nowadays, sending and receiving money has become a lot simpler than it used to be back in the day, and banks are no longer the only option you can use to transfer your money from one country to the other.

You can transfer money to your blocked account in Germany through one of the following methods:

• International Bank Transfer
• Money Transfer Companies

International Bank Transfer

International bank transfers can be done online as well as in person. To commence with an international bank transfer, you will need to provide 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.

Keep in mind that using your bank as a method of international money transfer can be a little pricey. The fees for international money transfers vary depending on the bank in your home country. That is why it is recommended to check with the bank account and make sure that the amount you are sending will cover the minimum amount. Otherwise, your blocked account confirmation letter will not be issued.

Typically, an international money transfer takes 3 to 5 working days, but it might also take up to a few weeks in particular cases. As soon as the money is credited to your bank account, you will receive your blocked account confirmation, which you can use for your visa application.

Money Transfer Companies

Money transfer companies, like Wise, Western Union, MoneyGram, and PayPal, are cheaper than traditional banks. They will offer lower fees and more competitive exchange rates in comparison to banks. This is why you must choose your money transfer provider based on their fees and processing time.

Here are a few money transfer companies through which you can transfer money to your blocked account in Germany:

Wise (Formerly TransferWise)

We recommend Wise as a method of money transfer due to its low and transparent fee for conversions.

It was specifically created to provide fast, affordable, and efficient transfers, making it different from traditional banks. This company is trusted in all corners of the world, transferring over £5 billion every month while saving people and businesses around £3 million in hidden fees every day.

Through Wise, you can send money approximately eight times cheaper than if you use traditional bank methods. Some other providers add a markup to the real exchange rate in addition to their fees. However, through Wise, the transaction is made using the real, mid-market exchange rate, the same as you see in Google.

International payments through Wise are delivered within 24 hours or less, which is quite convenient compared to the 3-5 working days through regular banks.

Western Union

Western Union has been known for sending and receiving telegrams up until recent years. Now, this company has entered the wire transfer market, and it is available in 200 countries dealing with 130 currencies. There are numerous ways you can send money through Western Union, including online transfers. Regardless of what you pay with, be it your credit or debit card, or your bank deposit, Western Union will get it done. However, you will notice that Western Union offers higher fees and weaker exchange rates than other online options.

MoneyGram

You may also transfer money internationally through MoneyGram, one of the largest providers of money transfers globally. Through MoneyGram, money can be sent to more than 200 countries and territories, and there is also the option to send funds directly to a bank account or mobile wallet. Fees, however, may vary depending on the location, amount, payment method, or other factors. Keep in mind that those who want to make an online transfer of more than $10,000 at a single time at once or within a month won’t be able to do so due to its online transfer maximum restriction.

PayPal

PayPal is also among the international money transfer options. Through PayPal, you will get a trustworthy and reliable service. However, it has several fees that will add up when you make the international transfer. This electronic commerce company facilitates payments between parties through online transfers.

Tips When Transfering Money

• Before you make any money transfer to your German blocked account, make sure you compare the exchange rates that apply to your transaction since they can impact affordability.
• Ensure you are aware of additional fees that will apply to your transfers since companies with higher exchange rates may also have higher fees.
• The money you are transferring must arrive in Euro (€) since the account is in Germany.

Talk to your bank and ensure that the transaction is made in Euro and that the transferred amount (using your home currency) is equal to the required amount in Euro.

How to Withdraw Money From the Blocked Account?

Once you settle at a registered address in Germany, you can withdraw money from your blocked account. But, keep in mind that you won’t have direct access to your blocked account in Germany. With that said, the only way you can withdraw your money is by opening an international student bank account in Germany, where your blocked money will be transferred every month.

Currently, you’re allowed to withdraw a maximum of €861 per month unless you’ve deposited more money than the required minimum. This amount of money is transferred from your Sperrkonto to your regular account (or international student bank account), from where you can freely withdraw your money.

FAQ

Can I deposit more than €10,332?

Yes, you can. This is only the minimum amount of money required from you to apply for your student visa. The German government wants you to have the necessary funds to live in Germany for at least one year.

What if my German student visa application is rejected?

If your visa application is rejected by the German embassy in your home country, you will be refunded. Contact the blocked account provider or the German consulate in your country, and they will tell you what you need to submit to get your money back. Note, however, that the transfer fee will not be refunded.

Do I need to prove the source of the money when transferring money?

With Fintiba, there is no need to prove the source of the funds that you transfer. With Deutsche Bank, on the other hand, you will have to show the origin of your funds. There are different ways you can do this.

The most common way of proving your financial means is by submitting a bank statement that reveals your deposit records in a bank.

Is there any administrative fee to open an account?

Yes, the blocked bank account provider charges you an initial fee for its service.

Do I have to pay a fee for maintaining my blocked account?

After you pay the bank for their services, a low monthly fee may follow.

Can a third party send the deposit on my behalf?

Yes, a third party can deposit the funds on your behalf. However, they must prove their identity initially. The blocked account provider may request an authorization from you to that person or organization, a valid passport and a bank receipt of the bank transfer.

Is the money safe at my blocked account?

Yes, they are. The Association of Banks in Germany participates in the Deposit Protection national scheme under which every German bank guarantees to protect deposits with up to 20% of their total capital.

Are there exemptions to opening a blocked account?

A blocked account is only one way of proving that your financial standing is as required. With that said, there may be other forms you prove it, but you need to ask at the German consulate beforehand. For example, you may have a relative residing in Germany who guarantees he will cover the cost of your stay in Germany.

Can I speed up the procedure of opening the account?

Unfortunately, you can’t. Even if you’re short on time, the bank cannot proceed faster with your application.

How to open a blocked account in India?

The process above is the same in any country you apply from. Here is a more detailed article about opening a blocked account in India.

Where do I register my address for my blocked account?

You can register your residence in Germany at the Resident’ Office Registration or Einwohnermeldeamt as it is known in the German language. Within two weeks of your arrival in Germany, you have to register your address. The bank will need it to send details of your blocked account once you arrive in Germany.