What is blocked account in germany?

By HotBotUpdated: September 5, 2024

Answer

Germany, renowned for its robust education system and vibrant economy, is a popular destination for international students and professionals. However, navigating the financial requirements can be complex. One critical component is the blocked account (Sperrkonto), a unique financial prerequisite for non-EU citizens. This guide delves into the intricacies of blocked accounts, providing clarity on its purpose, setup, and management.

What is a Blocked Account?

A blocked account is a special type of bank account designed to demonstrate that you have sufficient financial resources to support yourself during your stay in Germany. This account ensures that a certain amount of money is set aside and can only be accessed in limited monthly disbursements. It is commonly required for obtaining a German student visa or residence permit.

Purpose of a Blocked Account

The primary purpose of a blocked account is to assure the German authorities that you have the financial means to cover your living expenses while studying or staying in Germany. This requirement is part of Germany's efforts to ensure that international students and visitors do not become financially dependent on the state.

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Who Needs a Blocked Account?

A blocked account is typically required for:

International students applying for a German student visa
Language course students
Job seekers in Germany
Au pairs

It is important to note that citizens from EU/EEA countries are usually exempt from this requirement.

Setting Up a Blocked Account

Setting up a blocked account involves several steps:

1. Choosing a Provider

There are various financial institutions and specialized providers that offer blocked accounts. Some of the well-known providers include Deutsche Bank, Fintiba, and Expatrio. Each provider may have different requirements and fees, so it is advisable to research and choose the one that best fits your needs.

2. Opening the Account

To open a blocked account, you will typically need to provide the following documents:

Valid passport
Admission letter from a German university (if applicable)
Proof of financial means (e.g., bank statements)

Some providers allow you to open the account online, while others may require you to visit a branch in person.

3. Depositing Funds

Once the account is set up, you will need to deposit the required amount of money. As of 2023, the minimum amount required for a blocked account is €11,208 per year, or €934 per month. This amount is subject to change, so it is essential to verify the current requirement.

4. Confirmation of Blocked Account

After depositing the funds, you will receive a confirmation from the bank or provider. This confirmation is a crucial document that must be submitted with your visa application to demonstrate that you have sufficient financial means.

Accessing Funds from a Blocked Account

Once you arrive in Germany, you can start accessing the funds from your blocked account. However, there are limitations on how much you can withdraw each month. Typically, you can withdraw up to €934 per month, ensuring that the funds last throughout your stay.

Setting Up a Local Bank Account

Most students and visitors also set up a local bank account in Germany. The funds from the blocked account are transferred to this local account on a monthly basis, from which you can manage your day-to-day expenses. Popular German banks for setting up a local account include Deutsche Bank, Commerzbank, and ING-DiBa.

Managing Your Blocked Account

Managing a blocked account requires careful planning and budgeting. Here are some tips to help you manage your finances effectively:

Keep track of your monthly expenses and ensure they do not exceed the allowed withdrawal limit.
Plan for unexpected expenses by setting aside a small portion of your monthly allowance as savings.
Be aware of the fees associated with your blocked account and local bank account, and budget accordingly.

Challenges and Solutions

While blocked accounts are essential for many international students and visitors in Germany, they can present some challenges:

Initial Deposit

One of the most significant challenges is the need to deposit a large sum of money upfront. This can be difficult for some individuals, especially those from countries with lower income levels. To address this, some providers offer installment plans, allowing you to deposit the required amount in smaller increments.

Monthly Withdrawal Limit

The monthly withdrawal limit may not always be sufficient to cover all expenses, especially in cities with a high cost of living like Munich or Frankfurt. In such cases, it is essential to budget meticulously and explore additional funding options, such as scholarships or part-time work.

Alternatives to Blocked Accounts

While blocked accounts are the most common method to demonstrate financial means, there are alternatives:

Declaration of Commitment

A Verpflichtungserklärung (Declaration of Commitment) is a document where a resident in Germany commits to covering your expenses. This document must be notarized and approved by the local immigration office.

Scholarships

Scholarships from recognized institutions or organizations can also serve as proof of financial means. If you have been awarded a scholarship, you will need to provide documentation confirming the scholarship amount and duration.

Understanding and managing a blocked account is a crucial step for many international students and professionals planning to move to Germany. By familiarizing yourself with the requirements and processes, you can ensure a smooth transition and focus on your studies or career. Ultimately, the blocked account serves as a financial safeguard, enabling you to fully immerse yourself in the German experience without undue financial stress.