Are you ready to embark on your academic journey in Germany? Before you pack your bags and wave goodbye, there’s a crucial financial step you must take: setting up a Sperrkonto, commonly known as a Blocked account. This isn’t just any bank account—it’s your ticket to fulfilling your study dreams in one of the world’s most renowned education destinations.
In this guide, we’ll dive deep into everything you need to know about the Blocked Account: why it’s essential for your study in Germany, how to effortlessly open one, and key insights to navigate this requirement like a pro. Get ready to turn your German study aspirations into reality easily and confidently!
What is a German blocked account ?
A Blocked account ( Sperrkonto) is a mandatory bank account for international students in Germany, designed to prove that you have the financial means to sustain yourself during your studies. This account is termed “blocked” because while you can deposit funds into it, you can only withdraw a predetermined amount for monthly allowance, guaranteeing a consistent flow of funds to cover your living expenses throughout a year of your stay in Germany. This setup ensures you meet the government’s requirements for financial self-sufficiency while studying abroad.
Who needs to open the blocked account ?
A blocked account, serving as a beacon of financial reliability, is essential for various individuals:
- Students on Exchange Programs: If you’re gearing up for an educational adventure through an exchange program, you might need to establish a blocked account. This requirement demonstrates your ability to manage living expenses independently during your educational stay.
- Job Seekers: For those looking to secure employment in Germany, particularly in roles that require a work permit, opening a blocked account may be a crucial step in the visa application process. It verifies your financial readiness and stability as you start your career journey.
- Non-EU Citizens Seeking Residency: The most frequent applicants are non-EU citizens who need a residence permit for employment or educational pursuits.
- Family Members Joining Residents: If you’re moving to Germany to be with family members who are already established there, proving financial independence through a blocked account is often necessary.
What is the required amount for a Blocked account ?
The German government requires international students to open a blocked account as evidence of financial security. Before granting a student visa, German consulates or embassies must verify that applicants possess sufficient funds to sustain themselves. For 2024, students must demonstrate they have at least €11,208 annually, equivalent to €934 monthly. This sum guarantees that students can afford their accommodation, meals, insurance, and other daily expenses independently, without needing additional financial support.
Where Can I open the Blocked account ?
When it comes to managing your finances in Germany, selecting the right bank for opening a blocked account is crucial. A wide array of banking institutions across different regions offer specialized services to meet the specific needs of international students and expatriates:
a) Indian Banks
- Kotak Mahindra Bank: Renowned for its swift processing times, Kotak Mahindra Bank partners with German financial service providers to offer seamless blocked account services.
- ICICI Bank: ICICI facilitates the opening of blocked accounts through its collaborative efforts with German banking institutions, ensuring a smooth transition for students heading abroad.
b) International Banks and Service Providers
- Fintiba: Esteemed among international students, Fintiba, based in Germany, simplifies the process with its user-friendly online system.
- Expatrio: Known for its comprehensive service offerings, Expatrio provides blocked account services along with health insurance options, adding an extra layer of convenience for students.
- Additional service providers like Studely, Coracle, and Drop Money also offer competitive options, each with unique features to cater to the diverse needs of students.
c) German Banks
- Deutsche Kreditbank (DKB): As one of the most established banks in Germany, DKB offers reliable blocked account services, albeit with a bit more paperwork involved.
- Sparkasse: This local German bank chain provides accessible blocked account services that students can typically set up upon their arrival in Germany.
- Other notable banks such as Targo Bank, Postbank, HypoVereinsbank, Volksbank, and Commerzbank also offer similar services, each with their own set of benefits and requirements.
Here’s a step-by-step guide to help you through opening of Blocked account:
Step 1: Selecting a Bank or Service Provider Start by researching various banks and financial service providers that offer blocked account services. Choose one that aligns with your specific needs and requirements.
Step 2: Application Process Complete an online application form provided by your selected bank or service. You will need to provide your personal details, passport information, and proof of university admission as part of the application.
Step 3: Transferring Funds Once your application is approved, transfer the required funds (€11,208 or more) to your blocked account. Make sure to account for any bank fees to ensure the full required amount is deposited.
Step 4: Confirmation Receipt Upon successful transfer and deposit of the funds, you will receive a confirmation document from the bank or service provider. This document is vital for your visa application process.
Step 5: Activating the Account in Germany After you arrive in Germany, activate your blocked account by visiting the bank’s local branch (if necessary) or following the provider’s instructions online. You can then begin withdrawing the predetermined monthly amount as needed.
Here’s a breakdown of the costs and features offered by different blocked account providers:
| Provider | Setup Fee | Monthly Fee | Processing Time | Online Application | Document Submission | Health Insurance Add-on | Free Current Account Add-on |
| Expatrio | €69 | €5 | Account: < 24 hrs Transfer: 3-5 days | Yes | Online | Yes | Yes (100% online via Expatrio Value Package) |
| Fintiba | €89 | €4.90 | Account: 10 mins Transfer: 3-5 days | Yes | Online | Yes | No |
| Studely | None listed | None listed | Account: 24 hrs Transfer: 2-5 days | Yes | Online | No | No |
| Coracle | €59 | None | Account: Not specified Transfer: Not specified | Yes | Online | Yes | No |
| Drop Money | Starts from €45 | €5 (paid annually) | Account: 24 hrs Transfer: 3-5 days | Yes | Online | Yes | Yes (with REVOLUT) |
Alternatives to the Blocked Account :
Alternatives to opening a blocked account may be viable options to satisfy the financial requirements for studying in Germany. Scholarships that provide full funding from recognized institutions can eliminate the need for a blocked account. Similarly, a formal sponsorship from a relative or a third-party guarantor in Germany, who commits to covering your expenses, may also be acceptable to German authorities. Understanding these alternatives, alongside the traditional blocked account, ensures that you meet the financial prerequisites for your studies, allowing you to focus more on your academic and cultural experiences in Germany.
When you arrive in Germany, you’ll need to take a few crucial steps to access your funds:
- Apply for a German Residence Permit: Within three months of your arrival, it’s essential to apply for a residence permit at the local Foreigners Office (Ausländerbehörde).
- Activate Your Blocked Account: Activation procedures vary depending on the financial provider, but typically involve visiting the bank in person with necessary documents or uploading them on the provider’s platform if you are using an intermediary service.
- Set Up a Current Account: After activating your blocked account, set up a current account at a German bank, which may be the same or a different bank. This account is crucial as it will be where your monthly living allowance from the blocked account is deposited. Providers like Expatrio offer a seamless service where you can set up both accounts online, easing the transition and allowing immediate access to funds upon arrival in Germany.
- Required Documentation: You will generally need your passport, proof of registration in Germany, and your residence permit to set up these accounts. If setting up the account directly at a bank, you might need to wait until you have obtained your residence permit, which underscores the importance of carrying additional funds to cover initial expenses upon arrival in Germany.
Frequently Asked Questions
What is a German Blocked Account?
A Blocked Account (Sperrkonto) is a mandatory bank account for international students in Germany, ensuring you have adequate financial resources to support yourself during your studies.
Who needs to open a Blocked Account?
This account is crucial for students on exchange programs, job seekers requiring work permits, non-EU citizens seeking residency, and family members joining residents in Germany.
What amount is required to open a Blocked Account?
For 2024, the German government mandates that students show they can sustain themselves with at least €11,208 annually, equating to €934 monthly.
Where can I open a Blocked Account?
Blocked accounts can be opened at various banks and financial service providers, including Indian banks like Kotak Mahindra and ICICI, international services like Fintiba and Expatrio, and German banks such as Deutsche Kreditbank and Sparkasse.
What are the steps to open a Blocked Account?
Start by choosing a bank or service provider, complete the online application form, transfer the required funds, receive a confirmation receipt, and activate the account upon arrival in Germany.
What are the costs associated with a Blocked Account?
Costs include a setup fee (ranging from €50 to €150), monthly maintenance fees, and potential transfer fees for funding the account.
What are alternatives to opening a Blocked Account?
Alternatives include fully funded scholarships, formal sponsorships from a relative or third-party guarantor in Germany, or proving financial means through other verifiable sources.
How do I activate my Blocked Account after arriving in Germany?
Upon arrival, activate your account by visiting the bank’s local branch with necessary documents or follow online instructions if you are working with an intermediary like Expatrio or Fintiba.
What documentation is required for opening a Blocked Account?
Typically, you will need your passport, proof of university admission, and personal details. Some banks may require additional documents.
Can I open a Blocked Account from outside Germany?
Yes, you can initiate the process from abroad but will complete certain steps, like activation, once you arrive in Germany.
What if I need to close my Blocked Account early?
If you need to close your account early, contact your provider with proof of the reason, such as visa rejection, and follow their procedures for closure and fund reimbursement.
Can I manage my Blocked Account online?
Many providers offer online management tools allowing you to handle your finances remotely, monitor account status, and comply with withdrawal limits.