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

5 (100%) 1 vote

Study in Germany: how to open a blocked account and details copyMany engineers choose to study in Germany because it has some of the best universities which offer a huge variety of courses, especially for engineering majors. One very important financial requirement which all students need to fulfill in order to study in Germany is opening a blocked account. This article lists the process of opening a blocked account with the prominent banks as well as online blocked account providers.

Before we delve into the entire process, here is a small snippet which will explain the importance of opening a blocked account in the process to study in Germany.

What is Blocked Account? Is it Necessary to Study in Germany?

You may think of the blocked account as a savings deposit which will provide all international students studying in Germany with the living expenses they need. For students to obtain a German student visa to study in Germany, purchasing a blocked account is a compulsory requirement.

What is the Germany Blocked Account Amount For International Students?

As of September 2019, the German embassy has recommended 10,236 Euros as the yearly expenses for all international students studying in Germany.  Once they deposit this Germany blocked account amount, students will be able to withdraw a monthly sum of 853 Euros from their blocked accounts to support their living expenses in order to study in Germany without any financial problems. 

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.

Read more about How does CIBIL score affect your education loan?

How To Open a Blocked Account For Germany 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. Candidates who wish to open a blocked account through the Deutsche bank to study in Germany will have to begin with filling the application form for the same. Guidelines on how they can fill 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 candidate’s reference.
  3. Post this, candidates 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 by candidates at the German consulate in order to help move their blocked account application further:
  1. The duly filled blocked account application form
  2. Valid passport
  3. A copy of the course admission letter from the candidate’s respective university/language school.
  4. A prepaid envelope (from private courier services such as FedEx, DHL or UPS)
  5. Evidence of source of funds (Bank statement, etc.
  6. Once the form has been filled and the documents verified at the German consulate, candidates 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

   11.  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.
  1. Once these are successfully received by Deutsche Bank’s headquarters in Germany, the blocked account will be opened by the bank. After the account has been successfully created by the bank, the IBAN & BIC numbers will be sent to the candidate’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.
  2. As soon as they transfer money to blocked account, candidates will be intimated of its reception by Deutsche Bank via the phone number or email address registered by candidates at the time of registering.
  3. On arriving in Germany, candidates 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.
  4. If the candidate 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.
    1. The original letter stating that the student visa was not processed successfully.
    2. A signed application letter requesting Deutsche Bank to close the account.

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. Candidates will be required to fill 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 candidate’s passport.
  4. Once all the candidate’s personal details have been verified successfully and  the blocked account of candidates who wish to study in Germany will be created. Post this, candidates may transfer money to blocked account. A Confirmation of the reception of the money will be sent to the candidate’s email address. Candidates may take a print out of this email confirmation and submit it as proof of funds while applying a visa to study in Germany.
  5. Once candidates reach Germany, they will be required to create a German bank account for international students with any Germany based banks like the Deutsche bank and the monthly living expenses will be dispensed into this German bank account for international students by Fintiba

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.

abroad education loan

Germany Blocked Account: 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. The first involves winning fully or partially funded scholarships to study in Germany in reputed institutions. The second method is self-funding. 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 for candidates who wish to study 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 a Germany education loan 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 the 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. Also,

the core team of WeMakeScholars has been responsible for a lot of significant policy changes adopted by most prominent government banks. One such change is getting these banks to approve pre-visa disbursements as and when the students require it. So, when students apply for a Germany education loan through WeMakeScholars, they seldom face any difficulty in getting the same.

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. 

Read more about Best Study Abroad Scholarships For Indian Students

abroad education loan

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

Coming back to the topic, another option which a lot of candidates in India go for is opening a blocked account through the Kotak Mahindra Bank. This process, however, can be very hectic and time-consuming.  All candidates 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 in the Kotak Mahindra bank, it may so happen that officials in the local branches may not be aware about this provision. Hence, it is recommended that candidates approach Kotak Mahindra Bank branches located in bigger cities for the same. Candidates 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 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 Student Visa. (It is expected that bank will collect more amount than the prescribed amount in order to cover the rate differences at the time of depositing the amount in 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 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 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 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.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it is free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others

Written by

Bibliophile, wanderer, major foodie. I write too :)

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

error: All content is protected !!