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How to Open a Blocked Account

How to Open a Blocked Account: A Guide for International Students and Traders

A blocked account is a type of bank account that restricts the access to the funds deposited in it. It is often used by international students and traders who need to prove their financial means to obtain a visa or a license. In this article, we will explain what a blocked account is, how it works, and how to open one.

What is a Blocked Account?

A blocked account is a special bank account that requires the approval of a third party to withdraw money from it. The third party can be a government agency, a court, or a creditor. The purpose of a blocked account is to ensure that the account holder has enough funds to cover their living expenses, tuition fees, taxes, or debts.

A blocked account is different from a regular bank account in several ways:

  • The account holder cannot access the funds freely. They can only withdraw a fixed amount per month or per year, depending on the terms of the agreement.
  • The account holder cannot close the account or transfer the funds to another account without the permission of the third party.
  • The account holder may have to pay fees for opening and maintaining the account, as well as for each withdrawal.

Why Do You Need a Blocked Account?

There are two main scenarios where you may need to open a blocked account:

  • If you are an international student who wants to study in Germany, you need to prove that you have enough money to support yourself during your stay. This is called the proof of financial resources or Finanzierungsnachweis. One way to do this is to open a blocked account and deposit at least 10,332 euros (as of 2021) in it. This amount covers your living expenses for one year. You can then withdraw up to 861 euros per month from your blocked account.
  • If you are an international trader who wants to import or export goods to or from certain countries, you need to obtain a trade license or a customs clearance. To do this, you may have to open a blocked account and deposit a certain amount of money in it as a guarantee. This amount depends on the value and type of goods you are trading. You can then withdraw the money from your blocked account once you have completed the trade transaction.

 

How to Open a Blocked Account?

To open a blocked account, you need to follow these steps:

  • Find a bank that offers blocked accounts. There are several banks in Germany that offer blocked accounts for international students and traders, such as Deutsche Bank, Fintiba, Expatrio, and Coracle. You can compare their fees, services, and requirements online.
  • Fill out an application form and provide the necessary documents. Depending on the bank and the purpose of your blocked account, you may have to provide documents such as your passport, visa application, admission letter, trade contract, or invoice.
  • Transfer the required amount of money to your blocked account. You can use different methods to transfer money to your blocked account, such as wire transfer, credit card, or online payment platforms. Make sure you transfer enough money to cover the fees and exchange rates.
  • Receive a confirmation letter from your bank. Once your bank has received and verified your money and documents, they will send you a confirmation letter that states your blocked account details and balance. You can use this letter as proof of financial resources for your visa application or trade license.

What are the Benefits and Drawbacks of a Blocked Account?

A blocked account has some benefits and drawbacks that you should consider before opening one.

Some of the benefits are:

  • It helps you obtain a visa or a trade license faster and easier.
  • It protects your money from fraud or theft.
  • It allows you to plan your budget and expenses better.

Some of the drawbacks are:

  • It limits your access to your money and reduces your financial flexibility.
  • It charges fees for opening and maintaining the account, as well as for each withdrawal.
  • It may have unfavorable exchange rates or interest rates.

Conclusion

A blocked account is a type of bank account that restricts the access to the funds deposited in it. It is often used by international students and traders who need to prove their financial means to obtain a visa or a license. To open a blocked account, you need to find a bank that offers it, fill out an application form, provide the necessary documents, and transfer the required amount of money. A blocked account has some benefits and drawbacks that you should weigh before opening one.

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