One of the world’s leading financial service providers, Deutsche Bank, has ceased its blocked bank account services for international students wishing to continue their higher education in Germany since July 1 this year.
Once the sole provider of such services, Deutsche Bank is now no longer listed as a provider of blocked bank account services for students on the homepage of the German Foreign Office.
The withdrawal from this ‘market’ has been confirmed by the bank itself after a student asked them on Twitter if he could still open an account of this type at Deutsche Bank for his visa application.
“Unfortunately, Deutsche Bank does not offer student blocked accounts. You can find more information and alternative providers on the homepage of the German Foreign Office,” the bank’s social media representatives responded on Twitter.
Up until 2016, Deutsche Bank was the only provider of blocked bank accounts in Germany. The procedures for opening such an account were completely manual. The student had to print the Deutsche Bank blocked account form and complete it by hand twice.
An appointment then had to be made with the German Embassy in the student’s home country, during which appointment, the student had to bring with them several documents, including here a copy of the letter of admission into the German university or language school, as well as proof of the source of their funds.
The Embassy had to certify these documents before the student could send them to Deutsche Bank by mail. After the latter received the documents, it took them about a week to open the account and then send to the student their IBAN and BIC by email, through which the money had to be transferred. The latter process could take a couple of days up to a few weeks.
The account could then be activated only once the student was present in Germany and the same had a registered address in the country as well.
However, after 2016, several banks started offering the same service, digitalizing the procedures, and making it way much easier to open such an account from the home country of a non-EU applicant in Germany.
Analysts at BlockedAccountGermany.com believe that one of the reasons why Deutsche Bank stopped offering this service is because they could not keep up with the competition.
“When other banks started offering the service of blocked bank accounts, due to their facilitated procedures, Deutsche Bank slowly became less favoured by students, who instead turned to banks that had more digitalized procedures,” they claim.
Now, students who had planned to open such an account at Deutsche Bank will need to find alternatives, like Expatrio. The latter is a digital Blocked Account provider that started offering the service in 2018 and since then has seen a whooping increase of student clients.
The same enables students to open a blocked bank account from the comfort of their home without any hidden fees or charges. The only fees a student has to pay with them are a €49 account opening fee and a monthly fee of €5.
It also offers a Value Package, designed to make it easy for students to obtain student visas, which aside from the Blocked Account, also includes Health Insurance and other services.