What Is Blocked Account In Germany (Including Insurance Pro Tip)
Yana Immis
The blocked account (Sperrkonto) is a special type of bank account. You are required to open such an account before applying for a German Study Visa Type D (Above 90 days). Read more here…
All you need to know about the Blocked Account in Germany!
Blocked Account: do I need it?
If you are moving to Germany for studies, language courses, preparatory courses (Studienkolleg), or job-seeking visa, keep the information about the blocked account in mind!
In general, if you are from outside the EU and you are not sponsored from a German side, you will need a blocked account. Apprentice or Au-Pair? This is applicable to you as well!
Blocked Account sum
Attention! Every year the blocked account (Sperrkonto) sum may grow. Make sure to keep yourself up-to-date. As of September 2019, the sum you need to block with the German bank is 10,236 Euro.
Drawback: Initial financing required is high (to keep in mind that 1st-year expenses are much higher than the next years, because of the university deposit, tuition fees as well as the accommodation deposit payments).
Benefit: Monthly withdrawal capacity is high as well, which helps students to support their living expenses from one month to another.
The blocked account guarantees you have sufficient funds to cover your living expenses in Germany for a year. It is called a blocked account for a reason! Consider it a child allowance: you can only take a certain amount of the account on a monthly basis.
A student is allowed to withdraw a monthly sum of 853 € after reaching Germany, hence the blocked account balance at the time of the visa application must be 10,236€. This is the minimum living standard for 12 months in Germany in 2019. If you are studying for a shorter period and need a blocked account for a German language course or Job Seeker Visa, then you need to open an account with the amount equivalent to the number of months you plan to stay in Germany.
Blocked Account documents & deadlines
The list of documents is subjective due to nationality and the bank provider. However, the majority of the documents include:
Valid Passport
Application Form
Offer Letter
Conditional / Provisional Letter will suffice
Income Statement and /or Bank Statement
The Prepaid fee to open the bank account at the provider
Blocked Account process
You can decide on your own where to open the blocked account.
What you need to keep in mind:
You must apply for a blocked account in advance
You need to check the requirements for a Blocked Account at the local embassy
You have to make sure that you open the account under your own name
You need to check that your Blocked Account is approved by the Federal Foreign Office
You need to block 10,236 Euro
You can take out max 853 Euro per month unless, with written permission, your bank will let you take out a bigger sum
You can close the blocked account only if the purpose of studying in Germany is not fulfilled (visa rejection, university rejection, etc). You need an official confirmation!
Blocked Account providers Germany
The bank account for students, who require a visa (India, China, Pakistan, Russia, Colombia, etc.) must be opened before the visa application. You can open a blocked account from your home country at:
Coracle - the best option for international students in 2020-2024!
Allowing you to open an account almost instantly online!
Deutsche Bank
Fintiba
Expatrio
The last few years, more and more available options for opening a blocked account appeared to simplify the visa process for the foreign students, as an example, country-specific banks:
Kotak Mahindra (India)*
Isbank (Turkey)
UBL Bank (Pakistan)
*Disadvantages of choosing a local solution (as an example Kotak Mahindra):
The problem in Germany during Visa extension: By law, the deposited amount should be “blocked”. Kotak Mahindra sends the deposited amount to students’ regular bank account. When students go for Visa extension at the Ausländerbbehörde, they will in most of cases not accept the funds in a current account. Students will be forced to open a Blocked Account in Germany.
Forex Risk: The deposited amount in Kotak Mahindra is in local currency. Forex fluctuation can lead to considerable loss. If Indian Rupee gets weaker against Euro in the time period between depositing and transfer (usually 3 months), the total available Euro after the transfer will be less. Then additional funds must be transferred with additional international fund transfer fees.
Hidden Fee: The bank does not charge for the deposit. One must think about how the bank then earns money. Kotak earns in currency conversion margin. Student, once in Germany, has no option to choose a better remittance provider. Kotak decides what margin they set for the remittance. If for example, the Kotak’s forex rate is 50 paisa expensive than other market providers, then the student loses 5,000 Rupees on a 10K Euro transfer. Not having a choice to select the remittance provide is a HUGE disadvantage with financial impact.
Citizens from countries like Japan, Australia, Chile, Brazil, who have visa-free entry to Germany would be required to open an account after coming to Germany. There is plenty of available banks to open the blocked account in person after the arrival:
Hypovereinsbank
Commerzbank
Postbank
Sparkasse
If you are unsure which group of students you belong to (nationality wise), find your country on the list for the visa regulations here.
Blocked Account exceptions
Studying in Germany without a blocked account is possible if you fulfill one of the requirements listed below:
Scholarship from an educational establishment
Confirmation of government funding or approved student loan in Germany
Scholarship must come from a reputed government or Educational institution (e.g., DAAD, Max Planck)
The sum must cover your living expenses
Invitation from a friend or relative living in Germany (Verpflichtungserklärung)
This person will be responsible to support you financially during your studies
The reason for the invitation must be clearly stated: “Studium” (studies)
This document must be obtained in person at an Alien’s Registration Office in Germany
In case you do not match any of the requirements above, the blocked account becomes a mandatory prerequisite for the visa in order to study in Germany.
In this case, make sure to choose the best and the most cost-effective option. After a deep analysis, I have come to the conclusion, that 2020-2024’s best option is Coracle!!
Knowing how it is to be in the student’s position, leaving home to study in a new country or even new continent, not knowing what lies ahead, Coracle was founded by a former student (he came from India to study in Germany) with a purpose to ease the German Visa process for all the international students.
Blocked Account Coracle Offer
a digital, fast (less than 24hrs) and uncomplicated solution for the requirements of a Blocked Account
a free Incoming Travel Insurance
a Health Insurance of the student’s choice
documents are accepted by all German Embassies
a young and multilingual customer support team (speaking 10+ languages) always available for you
Blocked Account Coracle Benefits
There are a lot of benefits that make Coracle unique among the 4 accepted German Blocked Account providers:
Offering the Blocked Account to Minors (below 18 years old)
Choice of insurances
No discrimination in terms of nationality or country
The best price-quality-ratio enabling students to get the most out of their budget: 12 months of Blocked Account at only 59€ + a free Incoming Travel Insurance, which is required for the student visa + a Health Insurance of students’ choice!
3-in-1 PRIME OFFER (for the visa interview, the student will have to present the blocked account confirmation and the incoming travel insurance. Latest on the day of enrollment, they will have to hand in the confirmation from a Health Insurance company. That’s why Coracle offers all three services in one package)
The Coracle Prime Offer
12 months of Blocked Account at 59,- € (no monthly fees, not complicated cashback system)
A free Incoming Travel Insurance, which is required for the Visa Interview (we offer it to the students, it’s totally for free)
A Health Insurance of student’s choice (we do NOT cover any fee, the student will directly transfer the monthly amount to the respective Health Insurance Company, we don’t charge for our service of enabling the student to take care of this necessity already from his/her home country)
Blocked Account Coracle details & benefits
The very economic price of € 99,- if students wish to only apply for the Blocked account and € 59,- within the Prime offer (in both cases, the fee is all-inclusive, no monthly bank account fees, no complicated cashback system)
If the Visa should be rejected, Coracle pays the blocked amount and bank fees back
The simple activating process regarding the payout (no postident, no personal presentation required, etc.)
Fast Account Opening Confirmation (within max. 24hrs)
Blocked Amount Confirmation on the SAME DAY of cash receipt
First payout between 3 and 10 working days max.
Public Health Insurance Coracle Details & Benefits
Students are not restricted in their choice of Health Insurance, Coracle offers an independent comparison of three Public Health Insurances and the opportunity to write to us if they prefer a different Health Insurer. Students can select their preferred choice.
Insurance Certificate sent within 3h – 24h
No extra costs for students, they pay only the costs of the insurance company
No upfront payment, students start paying to Health Insurer only when they are here in Germany and only from the day of their enrollment on (until then, they are insured via the Incoming Travel Health Insurance)
Incoming Travel Insurance Coracle Details & Benefits
Complementary: a free of charge Incoming Travel Insurance if Public Health Insurance is applied via Coracle (Again: no complicated Cash-Back System)
Insurance Cover up to 180 days
Insurance Certification within 3h - 24h
Departure Date can be changed subsequently
Accepted by ALL German Consulates
Still having a lot of questions or doubts about the topic? Click on the button below to learn more about:
Blocked Account Documents & Deadlines
Blocked Account Procedure