A Blocked Account (“Sperrkonto” in German), works as a proof of financial resources for people that are planning to apply for a visa/residence permit for their stay in Germany. The main groups of people that are required to have a Blocked Account are students, au pairs, language students, job seekers and basically everyone whose stay in Germany is not supported by some external sources such as salary, scholarship, etc.
The money transferred to the Blocked Account is initially “blocked” until the account holder arrives in Germany. Once the account holder activates their Blocked Account, they start receiving the monthly amount.
The German foreign authority make monthly payouts a requirement instead of all in one go to ensure that the person coming to Germany is financially sustained throughout their stay in Germany. You can find more information about this on the German foreign office website.
The Blocked Amount requirements of local embassies might differ from the general requirement, therefore it is important to consult with the embassy you are planning to apply with, to ensure that you satisfy the local criteria.
The German Federal Foreign Office requires the applicants for visa to deposit €861 per month.