Everything You Need to Know About a Blocked Account

A blocked account is a special type of bank account designed primarily for international students and immigrants moving to certain countries, particularly Germany, to prove financial stability. This account makes sure that the holder has sufficient funds to cover their living expenses during their stay.

What is a Blocked Account?

A blocked account is a financial requirement for students who apply for a study visa in Germany and some other countries. The money deposited in this account is ‘blocked’ until the student lands on the country. The funds can only be accessed in fixed monthly amounts to cover basic expenses.

Why Do You Need a Blocked Account?

A blocked account serves as proof of financial resources required by the immigration authorities to ensure that international students can sustain themselves without relying on any external financial aid. It is often a must to obtain a student visa in Germany.

How Much Money Do You Need in a Blocked Account?

Starting from September 1, 2024, the required amount for a German student visa will increase to €11,904 per year. This means that students must deposit this amount into a blocked account before applying for their visa. The funds will then be released in monthly installments of €992 to cover living expenses throughout their stay in Germany.

How to Open a Blocked Account?

Opening a blocked account involves the following steps:

1. Choose a Provider – Several banks and financial institutions offer blocked accounts, including Deutsche Bank, Expatrio, Fintiba, and Coracle.
2. Apply Online – Most providers allow online applications where students are supposed to fill in their details and upload required documents.
3. Deposit the Required Amount – Transfer the mandatory amount to the account but also keep that in mind some banks may charge an additional service charge.
4. Receive Confirmation – Once the funds are received, the provider issues a confirmation document, which is required for the visa application.
5. Activate the Account – Upon arrival in Germany, the student must complete verification and link the blocked account to a local German bank account.

Key Features of a Blocked Account

• Fixed Monthly Withdrawal Limit: Students can only withdraw a specific amount each month.
• Mandatory for Visa Approval: A blocked account confirmation is often a required document for visa processing (mostly in Germany).
• Secure and Regulated: Funds are secure, and withdrawals follow strict rules and regulations.

Alternatives to a Blocked Account

Some countries allow alternative proof of financial resources, such as:

• Sponsorship from a relative in the country
• Scholarships covering the living expenses
• Government-backed financial guarantees

Common FAQs

1. Can I withdraw more than the allowed amount?
No, the bank will only release a fixed amount each month.

2. Can I use my blocked account for tuition fees?
No, this account is strictly for covering living expenses only.

3. What happens if I don’t use the full amount?
You can withdraw any remaining balance at the end of your stay or transfer back upon account closure.

4. Can I close my blocked account early?
Yes, but you may need to provide proof that your visa application was denied or that you are leaving the country.

Conclusion

A blocked account is an important financial requirement for international students in Germany. Understanding the process and making sure you meet all requirements will help you secure your student visa without any hindrances. If you’re planning to study abroad, researching different providers and preparing your finances in advance will help you a lot with your further processing. For further assistance with applications and visa processes, feel free to contact Idea Consultancy Services