The Ultimate Guide to Blocked Accounts for Indian Students in Germany
Hey there, future German scholar! Dreaming of studying in Germany? Awesome choice! But before you backpack, there is something important you should know: the Blocked Account. Don't worry, it's not as scary as it sounds. This guide will be your secret weapon to unlocking that German student visa.
So, What's a Blocked Account Anyway?
Blocked Account, known as "Sperrkonto" in German, is a mandatory financial requirement for international students seeking a student visa or residence permit in Germany. This bank account is just another proof to German Authorities that you can handle yourself financially.
If you are moving to Germany in 2023 or 2024, the minimum amount required in a blocked account for a student is €934 (₹84k approx.)per month or €11,208 (₹10 lac approx.) for the first year. This amount is mandatory for visa approval and you will get this money back on a monthly basis directly in your current account once you register in germany.
Why do I need this account in Germany?
Think of it as a way to convince Germany that you have sufficient financial resources. It shows that you can cover the expenses of your rent, food, and other necessary items while you focus on your studies. Plus, having a year's worth of funds gives you peace of mind to focus on your goal, not stressing about money.
Is Blocked Account mandatory for everyone?
Not exactly. If you have a scholarship covering your living costs, or someone who is living in Germany and is ready to fund your expenses, you might be exempted. But to make sure you are on the safe side you should double-check with the German embassy in India.
What are the Benefits of a German Blocked Account?
- Increased Visa approval chances: Having a blocked account proves to German Authorities that you have sufficient financial resources to cover your expenses for the first year of your studies. It increases the chance of approving your student visa.
- Budgeting Skills: The Blocked Account not only increases your visa approval chances but also its monthly allowance system teaches you budgeting your expenses and living within a set amount.
How do I find a Reliable and Good Banking Partner for My Account?
Finding a perfect banking partner for your blocked account can be made easy by going through these setups:
- Asking the international students: You can ask students who are or were studying in Germany on a student visa. No one better than them will tell you the correct and precise information. Maybe they had to go through the problems which they do not want anyone to suffer from in future.
You can find them on Linkedin, and other social media platforms. - Do your own research: Now you have the points stated by your seniors, you should start researching banks and financial institutions that offer blocked account services for international students in Germany.
You will easily know that the features for students and customer support they are promising will be provided to you or not. - Provider Reputation: If you are using a third-party provider for your blocked account such as Expatrio, Coracle, Fintiba, research their reputation and track record of serving the international students.
- Legal Compliance: Make sure that the bank or third-party provider you are considering complies with all the relevant legal requirements and regulations governing Blocked Accounts for international students in Germany.
- Other things you should look at in every bank such as minimum deposit requirement, features of blocked account, online banking, and fees because different banks have different approaches towards these. Select the bank that suits you most.
How do I open One?
Opening a Blocked Account is easier than you might think! Most banks and third-party providers let you apply online. Here’s how to get started:
- Choose your bank partner: After doing the thorough research that we discussed just now, you can easily choose the banking partner or a third-party provider to open your Blocked Account.
- Gather your Documents: Make sure you have all the documents prepared you will need to open your account, like your passport, visa application, proof of origin of money, bank statement, university acceptance letter, admission letter, and your ID Card.
- Wait for the application to process.
- Transfer the Money: Once your application is processed, your provider will send you the IBAN and give you the necessary instruction on how you can transfer the money to your Blocked Account. You can transfer through a bank or an international money transfer service/app. This usually takes 3-5 working days.
- Get the confirmation letter: Once your account is activated, the provider will send you a confirmation Document for a Blocked Account. You will need to submit it to the German Embassy.
Once your visa is approved, you will need to submit the confirmation document and other mentioned documents to receive the National D visa which will allow you to enter Germany.
What after entering Germany?
Once you arrive in Germany, you will need to fulfill some requirements to activate you Blocked Account for your expenses:
- Apply for a German residence permit: within the 3 months of your arrival in Germany, you must apply for a residence permit at the Immigration Authority of Germany.
- Account Activated: Once you receive the residence permit your Blocked Account will get activated.
- Transfer the money from Blocked Account to Current Account: You will also have to open a Current Account in a German Bank to cover your expenses. This Current Account will be directly connected to your Blocked Account, you can easily transfer your monthly allowance to your Current Account.
How much does it cost to live in Germany?
While that Blocked Account is an important aspect to your German visa, it’s also important to get an idea of how much you will be spending to live in Germany. We will understand how much on an average necessary items like accommodation, food, insurance, and transportation cost in Germany. Well, on an average a german student spends around €840 per month which includes all the items we mentioned and also some other items like TV, radio, and recreational activities. We will not be considering these expenses because as Indians we always try to avoid irrelevant expenses.This is just an estimated average. Actual expenses can defer due to many factors such as where you are living, your family income etc. This is an average of how much a german student spends roughly in a month, not the minimum expenditure amount. You can even spend less than this if you are capable of doing so.
Tips for Indian Students:
Okay, so now that we have understood the process of Opening a Blocked Account but how you should optimize it? Here are some best tips that will help you use your Blocked Account in a right way.
- Plan your Expenses: Creating a monthly budget outlining your expenses will help you manage your finances effectively throughout the year.
- Monitor Exchange Rates: When you are transferring money to your Blocked Account, keep an eye on the exchange rates. Fluctuations in the exchange rates will impact the amount you will receive in euros.
- Emergency Fund: Always keep aside a portion of your funds for any kind of emergency.
- Stay Updated: Stay informed regarding any changes in the visa or financial requirements or regulations in Germany. You can subscribe to newsletters or any other trusted sources to receive updates.
- Fees: Be aware of any fees associated with opening, withdrawing and maintaining your Blocked Account.
- Talk it Out!: If you have any questions related to your Blocked or Current Your Account or any other kind of requirements, do consider discussing it with your banking partner and your fellow students who have an experience of Blocked Account.
Frequently asked Questions:
This was the procedure and guidance to open your Blocked Account and use it. But maybe you still have some questions left, right? Don't worry, here are some frequently asked questions related to the Blocked Account in Germany.
Que 1. What if I don’t transfer my whole monthly allowance to my Current Account?
Ans. Well, not using all the money you have says that you have conquered in Budgeting Skills! when you don't transfer the whole monthly allowance to your current account, you can withdraw that remaining amount in the future anytime you need.
Que 2. What happens to the remaining funds in my blocked account after a year?
Ans. The remaining balance in your blocked account will be automatically converted into a regular bank account. You can then freely access these funds and use your debit card as usual.
Que 3. What if my blocked account funds run out before the year ends?
Ans. Well this can be a tricky situation. If something like this happens you might need to show source of additional funds, or seek financial support from a family member, or a Scholarship to convince the German Authorities that you can sustain yourself.
Que 4. Can I close my Blocked Account early?
Ans. Most probably, No. Blocked accounts are designed to ensure you have financial resources for a year. Early closure usually requires permission from the German authorities, which can be a complex process.
Que 5. Can I transfer funds from my blocked account back to my home country?
Ans. Funds deposited into a blocked account are intended to cover living expenses during your stay in Germany and may not be transferred back to your home country until the account's blocking period expires.
Sources:
Blocked Accounts for Germany student visa
Everything you need to know about Blocked Account
