Which blocked account providers are officially accepted and secure for a German (student) visa?

The market leader Fintiba comes off best in our comparison. This is because Fintiba is the only provider to offer the blocked account at a German bank with German deposit protection. Fintiba is also the best overall provider in terms of expertise (years since launch, number of customers) and speed (immediate blocking confirmation option by credit card; account activation) and one of the best in terms of customer satisfaction.

If you want to study in Germany as an international student and you come from a non-EU country that requires a visa, you have to apply for a student visa or a student applicant visa. You must prove that you have sufficient financial means to cover your stay in Germany.
 

For this purpose, the blocked account is the generally accepted standard solution for proof of financial means and is - as a matter of fact - accepted by all (local exceptions may apply) German embassies (based on the General Administrative Regulation on the Residence Act of October 26, 2009, §16.0.8.1). Some foreign embassies, e.g., the German embassy in Colombia, even accept other proofs of financial means (such as the declaration of commitment) only in justified exceptional cases (source). 

In fact, the blocked account is the most convenient solution for German embassies abroad and for you because it is fast, secure, and binding. With other proofs of financing - such as the bank guarantee - the embassy has discretionary powers, which can lead to the rejection of your visa application. In addition, the opening of a blocked account can now be done quickly and easily digitally. Whereas in the past you had to visit the German mission abroad (embassy, consulate) in person to have your documents for opening a blocked account at Deutsche Bank certified in paper form, today you can open the account online in a few minutes.

The blocked account is one of the ways international students can prove that they have sufficient funds to cover their living expenses (including sufficient health insurance coverage) for a residence permit (visa) to study in Germany. The amount to be paid into the blocked account corresponds to the maximum BAföG funding rate (§§ 13 and 13a paragraph 1 BAföG).

The Federal Ministry of the Interior (BMI) set the legal requirements for this financial proof in the General Administrative Regulation on the Residence Act of October 26, 2009. It states: 

"16.0.8.1 The requirements are satisfied in particular (...) by the payment of a security deposit into a blocked account at a financial institution which is permitted to carry out banking transactions in the federal territory, from which only 1/12 of the deposited amount may be paid out each month; the blocked account must be set up in the name of the student and the blocking note must be entered in favor of the public-law regional authority to which the competent foreigners authority is to be attributed (...)"

 

Concerning the banking models of the various blocked account providers, the following aspects are important:  

1) Banking license in Germany: according to the administrative regulation, the blocked account must be set up with a financial institution that has a license to carry out banking transactions in Germany. 

→ The provider does not necessarily have to be a German bank - foreign banks also fulfill this requirement as long as they have a corresponding BaFin registration (see the BaFin database). In the case of non-European banks without a German banking license - such as Kotak Mahindra (India) - there is a risk that the foreigners authority in Germany will not recognize the account abroad as sufficient. 
 
2) Account opening in the student's name: According to the administrative regulation, the blocked account must be set up in the student's name. The so-called escrow models, where the account is set up in the name of a trustee, do not strictly comply with this requirement. 

→ In practice, this regulation is interpreted quite differently. In most cases, German embassies and immigration authorities do recognize escrow providers. However, there have been repeated cases in which the local immigration authority in Germany has not recognized a blocked account issued in the name of an escrow provider, citing the administrative regulation. 

We consider these factors in the list of providers by prioritizing providers with a banking license in Germany. At the same time, we would like to point out that most embassies and foreigners offices in Germany interpret the administrative regulation in favor of blocked account providers with an escrow model (including Coracle and Edubao) and also recognize them. We, therefore, list the companies among the accepted blocked account providers - even though rejections may occur in individual cases due to the administrative regulation quoted above.

How does the blocked account work? You transfer a fixed sum in advance (currently 11,904 euros for one year or 992 per month) to an account from which the money may only be transferred for a specific purpose (living expenses during your studies) and in fixed tranches. That's why it is called a "blocked account"!

If you would like to learn about the subject of blocked accounts in a more detailed way, then take a look at this comprehensive guide. Among others, there you will find answers to the questions like:

• How to withdraw the money from the Blocked Account?
• Is it free to have a Blocked Account?
• Do I need a Blocked Account every year?
• How should I open a Blocked Account?
• When should I open the Account?
• How long does it take to open an Account?
• How can I transfer the money to the Account?
• Can I get my money back if my visa is rejected?
• How should I close the Blocked Account?
• What are the alternatives to the Blocked Account?

Until the BAM! scandal came to light in the summer of 2021, the Federal Foreign Office published a list of providers on its website who, to its knowledge, offered blocked accounts throughout Germany.

The last published version of July 15, 2021 (source) looked like this:

According to various sources, the German financial regulator BaFIN will not update the list of blocked account providers, at least for the foreseeable future.

Nevertheless, many German embassies continue to name individual providers. However, these names should be treated with caution: The lists are always incomplete and do not represent a recommendation by the embassy.

Anyone who has ever taken a look at the websites of blocked account providers will notice: that many provider claim to have the simplest, fastest, and best solution. 

However, the reality is that providers vary considerably - particularly in terms of the security and transparency of the blocked account solution. Through discussions with providers and industry experts, we have identified what we believe to be the key criteria for choosing the right provider.

Before you transfer more than €11,500 anywhere, you'd like to know where your blocked account is, wouldn't you? 

• Is it a bank in Germany (with German IBAN), or in Europe (with German IBAN), or in Europe (without German IBAN), or a bank outside of Europe?
• Is the account opened directly for you? Or are any foreign payment providers or lawyers interposed as trustees? 
• Is your money secured by the deposit protection there? Or do you have to hope that the worst-case scenario never happens?

These are fundamental questions. It is all the more surprising how careless most providers are with them - in terms of transparency. Even with the big players, you sometimes have to dig deep into their privacy policies, read their FAQs, or go to their support pages to get an answer. And for some, the answer is not even clear.

Our tip: You can recognise trustworthy providers by the fact that they inform you transparently before registration about the bank where your blocked account will be held, whether you will receive a German IBAN and whether it is protected by deposit insurance.

On the other hand, it's not a good sign if you have to search a long time to find this basic information!

There are two different banking models for the blocked account: 

RemitX (India) interposes a German law firm as a trustee (see the Terms & Conditions). 

Studely (France) uses an online payment service provider OuiTrust (France)

All other blocked account providers with escrow accounts use one online payment service provider:

• Lemonway SAS (France) 

Although the escrow model is technically is a little bit more complicated than the model with a direct bank connection, it is also very secure. In the event of bank insolvency, your deposits are also protected by the deposit guarantee (up to 100,000 euros). 

• In the case of RemitX, the German deposit guarantee applies (source).
• In the case of OuiTrust and Lemonway, the French deposit guarantee applies (source). 

If the trustee becomes bankrupt, the funds are also protected by so-called ring-fencing. This means that customer funds e.g. held by Lemonway are segregated in separate accounts at the banks. Here you can find more information about how Lemonway safeguards the funds.  

When you put your money in a bank, you want it to be safe. But many people forget this: 

Banks can also go bankrupt or become victims of criminal acts. 

Germany has a very robust and regulated financial system, but it has recently seen a number of banks and payment service providers fail:

• 2021: Bankruptcy of Greensill Bank in Bremen (Germany)
• 2023: Bankruptcy of North Channel Bank (Mainz / Germany) 
• 2023: Bankruptcy of Neobank Ruuky (Hamburg /Germany), which acted as a payment service provider (so-called e-money agent) for a Belgian banking partner PPS EU SA.

Even large international banks can get into trouble:

• In March 2023, Silicon Valley Bank (USA) - the 16th largest bank in the United States - was closed by regulators.
• In the same month, Credit Suisse (Switzerland) - one of the 30 global system-relevant banks - had to be rescued by a purchase of UBS
  ("Credit Suisse: How Switzerland's flagship bank could fall so low?").

While banking institution insolvency remains uncommon in Germany, additional security is provided through comprehensive deposit protection measures. Deposits maintain protected status under mandatory statutory deposit protection regulations, which guarantee coverage up to 100,000 euros for all German banking institutions.

There is a separate law for this (Deposit Guarantee Act), which also stipulates that everything is automatic in this case: 

• You will receive your money back no later than seven working days after the Federal Institute has determined that you are entitled to compensation.
• You do NOT have to apply to the deposit protection system for this. 

For more information on statutory deposit insurance at BaFIN.

The following comparable deposit insurance schemes exist in Europe:
 

• Within the European Union, the Deposit Guarantee Directive (Directive 2014/49/EU), which harmonized the requirements for national deposit guarantee schemes, applies.

• In the United Kingdom, the Financial Services Compensation Scheme (FSCS), a public-law compensation body, is responsible.

Further information on deposit insurance in the EU and worldwide can also be found at the Deposit Insurance Portal (in German).

In addition, there are at least a number of other criteria according to which providers differ.

This comparative analysis provides prospective students with an overview of blocked account providers and facilitates evaluation based on objective criteria identified as important by MyGermanUniversity. The optimal choice of provider should be determined by individual circumstances and preferences. Students are encouraged to make independent assessments based on their specific requirements.
 

Fintiba, the market leader, demonstrates superior performance across key metrics in comparative analysis. Distinctive advantages include the exclusive provision of blocked accounts through a German bank with German deposit protection. The provider leads in operational metrics, including

• Established Market Presence: Extensive operational history with demonstrated expertise in blocked account services
• Customer Base: Substantial number of successful international student accounts
• Processing Efficiency: Immediate blocking confirmation via credit card payment option
• Account Implementation: Streamlined activation procedures
• Client Satisfaction: Consistently high performance in customer feedback metrics