Deutsche Bank Blocked Account
Before you start your studies in Germany, you are required to produce sufficient financial means to meet your living costs (apart from tuition fees). Your Visa is issued upon depositing a fixed amount of money in a German Bank account (e.g. Deutsche Bank) and blocking this sum with the Federal Republic of Germany as the beneficiary. Several banks in Germany offer this service to foreign students such as Deutsche Bank, Sparkasse Aachen, BW-Bank etc. The information on this page refers to the most commonly used option, Deutsche Bank (DB) Blocked Account. Alternatively, if you are running short of time, you can also open a blocked account in Kotak Mahindra Bank and transfer the money once you are in Germany.
Your blocked account should carry sufficient funds to support living expenses during your first year in Germany.
You will be asked to transfer about 8700 euros to the blocked account. That means you can withdraw up to 725 euros per month.
You need to activate (un-block) your blocked account once you arrive in Germany.
A copy of your passport’s data page
The account opening form (filled out, but not signed)
Evidence of the source of your funds (e.g. bank statements)
A DB India account (optional, recommended)
Step by step guide
Step II: Print two copies of the completed application form (one copy is for your records)
Step III: Get all the documents (mentioned earlier) attested by the German Consulate. For this, you need to book an appointment here. The attestation fee will be 20 euros ( payable in Rupees, cash only).
Step IV: According to new regulations, the completed, certified and signed application form must be sent to the following address by German Consulate, not by an applicant (August 2016). You need to drop your documents along with a prepaid envelope at the German consulate.
Privat- und Geschäftskunden AG
Alter Wall 53
Step V: You will get your account details ( IBAN and BIC) via mail once your account is opened. Now you should transfer the minimum balance (8700 euros) and service fee (150 euros) to your new account at Deutsche Bank. Look for the best exchange rates offers before you transfer the money. For example DB India usually offers a good exchange rate. You can also wait for few days if the exchange rates are high at the current moment.
Note: If you have applied for an education loan, the lender bank usually transfers the loan amount directly your DB blocked-account. In such a case, you may not get the best exchange rates. You can talk to the bank manager and convince him to transfer the money to your local account instead (if possible). Later you can transfer this money to blocked account with a better exchange rate.
Step VI: This last step is carried out once you arrive in Germany (not necessary for your Visa). You just need to visit a branch of Deutsche Bank (carry your passport) and fill in a service order. That's it, you have activated your DB account in Germany.
For your Visa, there are a number of ways to show that you can finance your studies. Opening a blocked account is one (preferred) method. You can find other options in this Visa checklist.
IBAN is equivalent to your bank account number and BIC is equivalent to the bank Swift code (or IFSC code) in India. Also, just like any other Indian bank account, you will receive your Internet banking details, Debit card etc. once your account is activated in Germany.
It is not mandatory to open an additional Deutsche Bank India account and it is also not required to take out any services (including insurances) offered.
However, if you decide to transfer money via DB India (to take advantage of a better exchange rate), you will be asked to open a savings account first, with a minimum balance of Rs. 1 lakh (excluding DB blocked account money). Once you do the transfer, you can use the remaining money for your shopping etc. until you are in India. But I suggest you completely drain out this account before you leave India. Since the min. balance is Rs. 1 lakh, you will lose all the left over money for 'fall below' fees.
Here is a video guide for filling the DB blocked account application form