What is a Blocked Account?

A blocked bank account is an account that has been blocked or frozen so that no one can access the funds. This may happen for a variety of reasons, but when it comes to the estate of a deceased person, it often happens when the account holder dies. It can be a complicated process to release a blocked account, and it can cause challenges for the executor who is managing the estate. A blocked account may also be necessary for students who want to study in Germany.

Is a Blocked Account the Same as a Frozen Account?

While the two terms may be used interchangeably, they aren’t the same. You can have an account freeze without it being blocked. It’s often much easier to have the account released from a freeze than when it’s blocked. There are numerous situations that may create what is labeled as a blocked account.

• Accounts may be frozen in a divorce or other situations where the account holder isn’t allowed access to the funds in the account until an issue is resolved.
• An account is often blocked when it relates to the currency or how it may impact the nation. For instance, an account may be blocked if it uses the currency of a country where trading is blocked. Once trading resumes, the block is likely to be lifted from the account.
• Germany is one country that uses blocked accounts with foreign students who come from non-EU member states with a German student visa. They must show that they can pay for their studies with a blocked account where they don’t have free access.
• A blocked account may have been opened by a court order, which requires the order to make deposits or withdrawals. This type of account is often created when a judgment has been awarded to a minor or an adult is unable to manage their own money.

Accounts Blocked By the Bank

The bank or financial institution may also block the account. This may also be known as a Deposit Account Control Agreement or DACA. It is an agreement between a secured lender, the borrower, and the bank that maintains the deposit account. The bank maintains the account as stipulated by the lender without needing approval from the borrower.

How to Withdraw Funds from a Blocked Account

To gain access to the funds in a blocked account, you will need certain information. You need to know the name and the case number of the case used when the account was created. You will also need to provide the name and title of the account, the bank where it is located, the account number, and the balance in the account. You must also provide a reason why you want to access the funds.

Filing a Petition with the Court

You will need to file a petition with the courts to withdraw money from the account. The court will review your petition and make a judgment based on the information. Don’t assume that the petition will be granted even if the court has done so in the past. The court has the right to deny a petition and will do so even if funds are adequate to meet the request. The main reason for denial is due to the use of the funds for a frivolous purpose.

Opening a Blocked Account

How you can open a blocked account will depend on the reason for it being blocked. If it was created as a blocked account through a court order, you will need to petition the court for opening the blocked account. A blocked account for minors will be approved once the child turns 18. If the account was blocked by a government agency due to war or for national security, only the US Treasury may open it.

Blocked Accounts for German Students

Blocked accounts are used for foreign students who want to study in Germany. The account is blocked because you don’t have access to the funds until you arrive in Germany. You can transfer money from another account to the blocked one, but you will not be able to make any withdrawals prior to your arrival.

As an international student, you can open a blocked account in Germany while you are still in your home country. You can apply online with certain banks and transfer money into the account once the account has been created. There will be a minimum amount you must transfer for the account to be opened. You may use an international transfer from your current account to the blocked account to ensure you have sufficient funds to meet the requirements. You can fund the account for more money than the required blocked amount with your home currency through international money transfers.

Required Documents for a German Blocked Account

You will receive a blocked account confirmation letter by the blocked account provider once the account is set up and you are officially approved. To qualify for a blocked account, you will need a valid passport when you fill out the application. You should have the following documents to include with your application.

• Passport and copies of the passport
• Admission letter from the German university
• Bank statement from your local bank

Be aware that you may be asked to provide other proof based on the account provider you choose.

Why You Need a Blocked Account in Germany

The blocked account allows foreign students to provide proof that you have the financial resources to support yourself and pay for schooling while in the country. There are multiple blocked account providers that you can use.

You can compare options to find the lowest initial fee, set up fee, or other blocked account fees. you can fund the account once you know the amount of required money to be approved to study in Germany.

Start Early for a Blocked Account Opening

Most international students open a blocked account early in the process before beginning the visa application process. You must show that you have the financial means to live in Germany for the time specified while attending a German university.

You will receive a blocking confirmation and make the blocked money transfer before you fill out a student visa application. You must use the blocking account confirmation in your visa application form. The whole process can take several months as you might expect with bureaucratic procedures.

Options for a German Blocked Account

You have several options for a blocked account with a German bank, Deutsche bank, or a Fintiba blocked account. There are differences between the banks, such as the fact that the German and Deutsche bank are real banks. You can’t open a Deutsche bank online, only through the German embassy. You must take the application form to the German embassy and sign it there.

After You Arrive in Germany

Once you have arrived in Germany, you can take your German visa and go to the bank where your account is held and have it activated. You will be allowed to take monthly payouts with a maximum threshold. The amount of money required in the first place will depend on how much you need for an entire year of study for the cost of the education as well as living expenses.