Study in Germany: How to Open a Blocked Account & Other Details

There is no denying that Germany is one of the cheapest countries to study in Europe for Indian students. It is because students who enroll in a public university in Germany do not have to worry about paying expensive tuition fees. German public universities have little to no tuition fees yet provide a wide range of courses, globally approved degrees, and top-notch staff and professors. 

However, like in a few other countries, You are required to transfer money equivalent to one year's living expenses to Germany in advance before the Visa process. The German embassy asks the students to open a blocked account before they apply for a visa. 

If you don't know what is Blocked account, why is it required? Don't worry, this article is just about that.

What is blocked account? Is it necessary to study in Germany?

A Blocked Account is a special type of bank account that is necessary for international students in Germany that allows them to deposit the required amount of money to cover their living expenses for a year and acts as proof of financial resources when applying for a German student visa.

As soon as you receive your university acceptance letter, you need open a blocked account. It is vital for you to be able to prove that you are financially capable of sustaining yourself, at least during your first year of study in Germany. 

How much is the blocked account amount for international students? 

As of 2022, the mandatory sum required by the German embassy/consulate that must be deposited to the blocked account is €10,332 (about 8-9 lakhs). Once you start your first semester in Germany, you can withdraw an amount of €861 per month (about 70k).

What is the Procedure To Open a Blocked Account To Study in Germany?

There are three main sources of creating a blocked account to study in Germany. In India, many of you may be familiar with the blocked account services provided by the Kotak Mahindra Bank. 

However, this entire process of getting a blocked account to study in Germany can be really time-consuming as the Kotak Mahindra bank takes a really long time to process blocked account applications. 

With the advent of online blocked account providers like Fintiba and Expatrio, a lot of students have chosen to go for them due to the really short time taken by these establishments to process a blocked account. The entire process of opening a blocked account with each of these lenders will be discussed in the following paragraphs, beginning with the process followed by Deutsche Bank which is one of the most prominent German banks.

How to open a blocked account with the Deutsche Bank?

The Deutsche Bank is one of the primary choices opted by most students to open a blocked account to study in Germany. The entire process of opening a blocked account with the Deutsche Bank can be a little more time-consuming as compared to its digital counterparts. Here is how you can open a blocked account with the Deutsche Bank.

1. Fill out the application form for the blocked account. Guidelines on how to fill out the form are clearly explained on the Deutsche bank’s official website. 

2. Once the above step of filling the blocked account form has been completed, students are recommended to make two physical copies of the same. One of them is for the student's reference.

3. Post this, students will be required to make an appointment with the German consulate/embassy, attend that appointment in person and get all the relevant documents verified and certified at the embassy by the concerned authorities.

4. The following documents are to be verified at the German consulate in order to help move the blocked account application further:

• • The duly filled blocked account application form
  • Valid passport
  • A copy of the course admission letter from the student's respective university/language school.
  • A prepaid envelope (from private courier services such as FedEx, DHL, or UPS)
  • Evidence of source of funds Bank statement, etc.

5. Once the documents have been verified at the German consulate, students are required to send the duly filled form along with certain relevant documents to the following address in Germany:

• • DB Privat- und Firmenkundenbank
  • AG Alter Wall 53
  • 20457 Hamburg Germany

6. Once the documents are successfully received by Deutsche Bank’s headquarters in Germany, the blocked account will be opened by the bank. 

7. After the account has been successfully created by the bank, the IBAN & BIC numbers will be sent to the student's registered e-mail address or phone number, whichever is the mode of communication preferred by students at the time of applying for a blocked account to study in Germany. Students will be required to deposit a minimum balance amount into the account as soon as they receive an update.

8. As soon as they transfer money to a blocked account, the student will be intimated of its reception by Deutsche Bank via the phone number or email address registered by candidates at the time of registering.

9. On arriving in Germany, students are required to fill a service application order which is available on the official Deutsche Bank website. Once this formality is carried out, the blocked account can be used by candidates to dispense the recommended Germany blocked account amount for international students.

10. If the student does not qualify for a student visa to study in Germany, they will be required to submit the following documents in order to retrieve the money which was transferred to the blocked account.

• • The original letter stating that the student visa was not processed successfully.
  • A signed application letter requesting Deutsche Bank to close the account.

The documents which are to be sent with the duly-filled form are:

• • Certified passport copies
  • A copy of the admission letter from the candidate’s university/language school.
  • Documents providing evidence of proof of funds.

These documents are to be sent to the same address belonging to the Deutsche Bank headquarters in Germany. 

How to open a blocked account online through fintiba?

Fintiba is one of the most prominent online blocked account services available to students who wish to study in Germany. Here is the full process of opening a blocked account with Fintiba, an online financial solutions company offering blocked account services.

1. The very first and obvious step of opening a blocked account through Fintiba is to register on their website or on the Fintiba mobile application.

2. Students will be required to fill out the application form as well as the personal application data.

3. The only document which has to be uploaded on Fintiba is a scanned copy of the student's passport.

4. Copy of the student's passport. Once all the candidate’s personal details have been verified successfully and the blocked account of the student who wishes to study in Germany will be created. 

5. Post this, the student may transfer money to blocked accounts. A confirmation of the receipt of the money will be sent to the student’s email address. Students may take a printout of this email confirmation and submit it as proof of funds while applying for a visa to study in Germany.

6. Once students reach Germany, they will be required to create a German bank account for international students with any Germany-based bank like the Deutsche bank and the monthly living expenses will be dispensed into this German bank account for international students by Fintiba.3

What are the Fintiba Blocked Account charges?

A set-up fee of 89 Euros is charged by Fintiba for the creation of the blocked accounts for international students. Post that, candidates are expected to pay a monthly fee of 4.90 Euros to continue the blocked account services by Fintiba.

Opening a blocked account through Expatrio

Expatrio is another online financial services provider which offers the service of opening a blocked account for international students. The procedure of opening a blocked account through Expatrio is more or less similar to the process of applying with Fintiba. The entire process of opening a blocked account to study in Germany is conducted online by Expatrio. The value package offered by Expatrio is specially designed for the benefit of international students who wish to study in Germany. Do visit their official website to know more about this offer.

Expatrio charges an initial set-up fee of 49 Euros for blocked accounts. Post this, students will be charged a monthly sum of 5 Euros to continue receiving their services.

Different types of funding acceptable by the German embassy for German student visa 

There are three different ways of funding your higher education in Germany. 

1. Winning fully or partially funded scholarships
2. Self-funding
3. Abroad education loan

Very few students who wish to study in Germany can afford to self-fund their entire expenses in Germany. Although a lot of public universities offer courses at zero tuition fees, the living expenses can be quite high in Germany. Hence, a majority of these students opt for the third source which is borrowing an abroad education loan. 

Now, one of the major problems of borrowing education loans from any of the prominent government banks is that many students are not able to secure a pre-visa disbursement so that they can transfer Germany blocked account amount in time. This is where the assistance of the WeMakeScholars team comes in handy. The financial team of WeMakeScholars is well-versed with the financial requirements that are to be fulfilled by students who wish to study in Germany.

If you are looking to fund your higher studies in Germany with the help of an education loan, do get in touch with our team today and get to experience an easy education loan process with the lender recommended to you by our team of experts. 

How to Open a Blocked Account Through The Kotak Mahindra Bank?

All students who wish to open a blocked account through the Kotak Mahindra Bank in India need to follow the below-mentioned process. Since this service is a recent addition to the Kotak Mahindra Bank, it may so happen that officials in the local branches may not be aware of this provision.

Hence, it is recommended that students approach Kotak Mahindra Bank branches located in bigger cities for the same. Students will be required to personally visit the Kotak Mahindra Bank in order to open a blocked account to study in Germany. The following documents are to be submitted for the same.

1. Savings Account Opening Form and Know Your Customer (KYC) documents as per Bank’s KYC grid.
2. A copy of the Passport.
3. A copy of the admission letter issued by a German University.
4. Email Indemnity in Bank’s format.
5. Request to convert customer status from Resident to Non-Resident and change Resident Account to NRO.
6. Outward Remittance form – the section for the beneficiary account and bank details will be left blank
7. IP Cheque for INR value equivalent to EURO 8700 (prevailing TT Selling rate on the day of account opening) –This amount is collected as required by the German Embassy for the issuance of a Student Visa. (It is expected that the bank will collect more amount than the prescribed amount in order to cover the rate differences at the time of depositing the amount in the Student account and on the day of outward remittance.). IP Cheque from an immediate family member – Father / Mother / Siblings can be accepted for these student accounts.
8. Student Request Letter - A declaration cum undertaking from the student allowing KMBL to mark a Debit Freeze in the account till the time an instruction to remit funds overseas is submitted by the student and sharing account information with the German Embassy for the issuance of Student Visa.

The entire process of opening a blocked account through the Kotak Mahindra Bank could be time-consuming. Hence, students may consider opening the blocked account through the Deutsche Bank or online sources like Fintiba, Expatrio, etc. 

A detailed comparison of organizations offering blocked account services

Services Offered	Deutsche Bank	Fintiba	Expatrio
Processing time	18 - 20 Days	10 minutes	24 Hrs.
Monthly Service Fee	5.90 Euros	4.90 Euros	5 Euros
Initial Service Fee	150 Euros	89 Euros	49 Euros
Online Application	No	Yes	Yes
Monthly Withdrawal Amount from Blocked Account	853 Euros	853 Euros	853 Euros
Attestation of documents at the embassy required	Yes	No	No
Can underage students apply for a blocked account ID?	Yes	No. Student has to be above 18 years of age to apply.	No. Student has to be above 18 years of age to apply.
Chance of Rejection	Possible	No	No
Health & Travel insurance availability	None	Yes	Yes

You may have observed in the previous paragraphs that the procedure which students need to follow to receive their Germany blocked account amount is more or less similar in the case of different lenders. In order to know about the various documents that can be submitted as proof of funds while applying for a blocked account to study in Germany, do refer to the 20th episode of Loanflix.