For various reasons, Germany continues to rule over the hearts of study abroad students. It is popular for its impeccable education system, safe and secured student life, a plethora of work opportunities, and its rich cultural values. Moreover, its low to no tuition fees is what attracts a lot of attention.
· What is a German bank blocked account?
· How to find the best bank for a blocked account in Germany?
· How to open a German bank blocked account?
· What are the latest updates?
· Frequently Asked Questions
A German bank blocked account is nothing but a type of German bank account where international students are required to deposit a certain sum of money that they will need to finance their studies and stay in Germany. It is mandatory to open this account in order to study in Germany. The reason why it is called a blocked account is because, the amount stays locked in the account until the student arrives in Germany to pursue their academic journey.
The second perk of this account is that it can serve you as proof of funds when you apply for a student visa. You are free to utilise these funds for your studies once you land in Germany after completing the required formalities.
Interesting fact: Did you know that the Indian student community is currently the 2nd largest group studying at German Universities? So, if you are all set to join this vibrant community, get to know everything about the blocked account.
Please remember, this account will be your active account after you fly to Germany for your higher education. Don’t select the bank based on a few factors. Instead, look at the overall benefits you will receive. So, it is necessary to consider the following aspects before you shortlist the account:
· Distance between your university and the bank.
· Various fees charged during and after opening the student account.
· Whether the bank offers debit cards.
· The easy accessibility to the ATMs around your accommodation/campus.
· Interest rates, benefits and other features offered.
· Please research customer service and customer ratings too.
Nowadays, most service providers have moved the process online. So you can open the account from the comfort of your home by following these simple steps:
· Shortlist a German bank after conducting thorough research.
· Visit the website to read the instructions. This will help you gather all the required documents to apply.
· Once the documents are in place, apply online and submit the documents.
· Your account details will be verified by the bank before opening your account.
· After opening the account, you are required the deposit the money.
· You shall receive an email from the bank once your amount is transferred to your account.
· To access this account once you arrive in Germany, you will have to complete the formalities as prescribed by your chosen service provider.
Pro Tip: This general procedure may vary slightly depending on the service provider you select. So, it is advisable to visit the website of your preferred service provider to know the precise set of formalities.
According to the latest development, from January 2023 onwards, the amount students need to deposit is €11,208 per year.
The amount you are allowed to withdraw when you study in Germany
Earlier, students were allowed to withdraw €861 per month. However, from next year onwards, students may be allowed to withdraw €931 every month.
When is the best time to apply for a blocked bank account?
To avoid the last-minute rush, it is best to apply well in advance. Ideally, you can apply soon after receiving your university’s confirmation letter. Also, please remember that international transfer of funds will require some time.
What are the ways to open a blocked bank account in Germany
You can contact the local German banks directly and complete the application process as mentioned on their website. Or you can choose to open the blocked account via the German Consulate/Embassy.
For how many years should I deposit the amount?
When you apply for the student visa, it is mandatory to prove that you can have sufficient funds at least for the first year of your stay, which is €11,208.
Now that you have all the information, you can plan your academic journey. Although Germany is known for affordable tuition fees, you have to consider multiple expenses such as travel expenses, accommodation costs, living expenses, study material costs and other education-related expenses. At Avanse Financial Services, we offer an education loan that covers all the major educational costs so that you can focus on your studies. If you have any queries, please feel free to connect with us. All the best!
We always aim to offer you competitive interest rates on your Avanse Education loan.
The rate of interest on your loan is calculated as: Interest Rate = Avanse Base Rate + Spread.
Our current Base Rate is 14.25% (WEF 01.05.2023).
The Spread is floating and is based on analysis of overall credit and course profiling.
This rate is subject to the terms and conditions of Avanse Financial Services Ltd.