New year, new study abroad opportunities! An increasing number of Indian students are turning their attention to emerging destinations like Germany, which has become a popular choice for higher education in recent years. Germany, with over 49,000 Indian students enrolled in 2023-24, stands out for its affordable tuition fees at public universities, strong engineering and technology programs, and scholarships like DAAD.
As Germany’s summer intake season approaches, here are 5 practical money-saving tips to help students plan their finances and make the most of their international education journey in Deutschland:
Master the art of currency exchange
Transacting in foreign currency requires a different approach than domestic transactions. This is why using your local bank in India for international transactions is often not the most cost-effective option.
Instead, look for providers specialising in cross-border payments, like Wise, as they tend to offer lower fees and a seamless experience. To ensure you’re getting the best deal, always compare exchange rates against the mid-market rate (the one you see on Google) to avoid markups. This can lead to significant savings, especially on hefty payments like tuition fees.
Avoid the dynamic currency conversion trap
If you’re using your Indian cards abroad, watch out for Dynamic Currency Conversion (DCC). This happens when merchants offer to charge you in Indian Rupees instead of the local currency. While it may seem convenient, DCC often comes with higher fees and poor exchange rates. Whether you’re exploring Hamburg or making a trip to neighbouring countries, the better choice is to refuse DCC and pay in the local currency for better value.
Plan your pre-departure expenses strategically
Create a comprehensive pre-departure budget that accounts for essential expenses from student visa fees (€75 in Germany) to other key costs such as health insurance, flight bookings and accommodation deposits.
Consider timing larger expenses when exchange rates are favourable to maximise your savings. Use rate alerts offered by some international payment platforms to secure the best rates.
Research the right banking setup
Navigating the banking system in a new country can be overwhelming, but Germany’s well-organised financial sector makes it easier with options ranging from traditional banks to specialist multi-currency providers.
When opening a local account to manage domestic finances, consider features such as low or no account maintenance fees, no transaction fees on domestic transfers and free ATM withdrawals. Additionally, pay attention to fees associated with international transactions. The accounts for students in Germany are generally free to open, so the bank you choose should offer features that align with your personal preferences and needs.
Managing money from home
Carrying a large amount of cash from home and depositing it on arrival can be risky. A more practical option is for you or your family to use a trusted digital money transfer provider in India, like Wise, to send money directly to your local German account. By choosing one with low fees, fair exchange rates, and fast and trackable transactions, you can focus on settling into your new life without worrying about finances.
The author is India Country Manager, Wise (a global remittance company)
