german blocked account
  • Eduzeit
  • 7 months ago

A Complete Guidance to German Blocked Bank Account - Eduzeit

Note:

The German Embassy in Kathmandu has mentioned that it is not mandatory to open a blocked account before applying for a visa. After you apply for the visa, the visa team would notify you about whether you require a blocked account.

More information: German Embassy Kathmandu.

What is a German blocked account?

Anyone interested in coming to Germany for study or a job in countries not listed in the EU (European Union) may need to open a special account in a German bank called a coracle blocked account and deposit a minimum amount as required by German Law. The candidate cannot withdraw the funds until they arrive in Germany.

It ensures that the applicant has enough financial backing to live a life of sound standard in their first year in Germany.

The amount required for a German blocked account

 As per recent changes by the regulatory bodies, starting from January 1, 2021, the internationals should deposit a minimum of 10,332 euros into the blocked account before arriving in Germany.

How to withdraw the funds deposited in the blocked account?

After you arrive in Germany, you need to first open a checking account there. Then you can withdraw up to 861 euros a month with the minimum deposit of 10,332 euros into the blocked account. 

Can I deposit over 10,332 euros into the blocked account?

Yes, you can deposit over 10,332 euros into the blocked account. In that case, you could also withdraw over 861 euros per month until you spend the extra money.

German Bank Account for International Students

The German Embassy in Kathmandu has mentioned three options to open a German blocked account for Nepali citizens. The German foreign federal office has also approved these service providers. They are:

  1. Deutsche bank

  2. Expatrio 

  3. Fintiba

Here Deutsche bank is a bank on its own and Expatrio and Fintiba act as a middleman between candidates and German banks to provide the blocked account opening service.

How to open the German blocked account?

Among the three blocked account service providers mentioned earlier, Expatrio and Fintiba allow online account opening processes. With Deutsche Bank, one should download the application form online and submit it through the German Embassy.

The process to open the German blocked account online through Fintiba (there is a similar process of Expatrio too):

  1. Go over to Fintiba web page and fill out the blocked account application form. There are 4 sections to fill in, namely personal details, study details, US tax status, and agreements. You would also need to provide your scanned copy of a valid passport and admission letter from the university. After you submit the application form, they would approve it within 1 working day.

  2. When approval for the application form arrives, transfer the funds to the account provided by Fintiba.

  3. After transferring the fund, you would receive the blocking confirmation. This means you have successfully created your blocked account.

The process to open the expatriate blocked account offline through Deutsche Bank:

  1. Download and fill-up the blocked account application form

  2. Make two copies of it (where one is for your own record)

  3. Make an appointment with the German embassy and get the documents certified. The document required are:

  • Filled application form

  • Authentic passport

  • Letter of admission from the university

  • A document specifying your source of funds (bank statement)

  • Prepaid envelopes from private delivery service providers like DHL and FedEx.

  1. After this, they would open your account on Deutsche Bank and you need to transfer the blocked account amount plus the initial service charge to the new Deutsche Bank account.

  2. Upon arrival in Germany, fill in the service activation order by going through the Deutsche Bank website.

The Deutsche Bank requires you to pay 150 euros as the initial service charge to open the blocked account. While Fintiba and Expatrio charge 89 and 49 euros every 12 months. There is also a monthly fee of 5 euros with Fintiba and Expatrio while Deutsche Bank doesn’t charge for it.

How to transfer money to a block account?

After approval of the blocked account application, you can transfer the fund to the German blocked account through the local bank or other money transfer services like MoneyGram, western union, and Xoom.

The information required to transfer the funds is:

  1. Receiver’s account details including name, address, account type, and account number/IBAN (international bank account number)

  2. Name and address of the receiver's bank

  3. Swift code of receiver’s bank

The quicker way to Open the best German blocked account

You can quickly open the German blocked account through online services like Fintiba and Expatrio compared to the offline process of Deutsche Bank. 

The time span from the start of the application process to receiving the confirmation for a blocked account can range between (1-2) weeks when proceeding from online service providers and up to (4-6) weeks when through Deutsche Bank. 

The advantage of opening a blocked account with Deutsche Bank is that you don’t need to create a separate bank account upon arrival in Germany, while with the other two; you need to.

Best Blocked Account Germany for Minor Below 18

Yes, it's possible to open a blocked account for minors below 18. For that, Fintiba, one of the blocked account service providers, mentions that the only extra information required in the minors' blocked account is the passport of their parents which in the case of Nepal, should be issued after December 26, 2010; and also a few details about the parents as they are the direct owner of the account.

As only the individual above 18 can open a checking account, the minor should open a basic account called Basiskonto after arriving in Germany to withdraw the funds every month.

Is a German blocked account the only way to prove my financial backing?

Despite being the popular option to prove your financial status, it is not the only way to do so. You can prove your financial backing using other means like:

  1. Acceptance for scholarships from governmental bodies or reputed educational institutions.

  2. Letter of sponsorship from anyone staying in Germany, who will cover your expenses during your stay there.

But make sure you inform and take permission from the German consulate about proving your financial capabilities this way.

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