Studying Abroad? Here are the Best Ways to Save Money on Foreign Exchange!

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Sristy Sharma
Updated on May 05, 2022 12:24 PM IST

Financing your international education can be a challenging part of your entire study abroad experience. However, with the right and easy ways, you can always save money on foreign exchange while studying abroad. Scroll through to find out how!

Studying Abroad? Here are the Best Ways to Save Money on Foreign Exchange!

Finance forms an important factor when deciding on where and at which university to study. If you are thinking of studying abroad, the first thing that comes to find is the hefty amount that you need to spend on your education.  

You must have made sure to be safe in your selection of colleges when it comes to tuition fees, travelling and living expenses along with a comparison costs of studying in two different countries. However, when it comes to the actual transactions, they often end up being different than imagined due to the high currency exchange rate.

Here are a few tips that can help you save money on foreign exchange while studying abroad.

Learn to Manage Finances While Studying Abroad!

What is Loss in Foreign Exchange?

Before learning about how to save up on foreign exchange, it is important that you understand what foreign exchange is and why a loss occurs in this process.

If you are going to study abroad, then you shall also have to stay in the country which you have chosen as your study destination, and while staying there, all the transactions which occur shall have to be made in the currency of that country. 

As we all know each country has its own unique currency and these currencies can be converted into another currency with help of exchange rates. 

For example, if you have chosen the US as your study abroad destination then all the transactions shall be in US Dollars during your stay in the country. However, Indian currency is INR and it definitely can’t be used in the US and hence shall have to be exchanged for USD while moving out of India. In order to apply the exchange process, the exchange rate shall be used, which is how many INR has to be paid in order to buy 1 USD. 

(If the exchange rate is 71.28 INR then students shall have to pay 71.28 INR in order to buy 1 USD)

As you must have noticed the rates at which currencies can be exchanged are different and they also change on a regular basis, sometimes low and other times high, the process resulting in sometimes paying more for the foreign currency and at other times paying less. While paying less is definitely good but the currency rates cannot be trusted to remain the same and therefore precaution must be taken for cases when rates go high.

Tips to Save on Foreign Exchange Transactions While Studying Abroad

As promised we have some handy tips which can help you in saving money during the Currency Exchange process.

Choose the Study Abroad Destination Carefully

It might be possible that you must have reached this article after deciding on your Institution. In that case, this tip is not for you, however, if your decision is still pending, we advise that you give a bit more time and thought. It is better to choose a country whose currency exchange rates remain stable with that of your home currency. This shall help you in avoiding the surprise factor of exchange rate fluctuations. You can also choose countries that have a low exchange rate when compared to home currency.

Open Account in a Multinational Bank

Nowadays there are many banks that work at the international level. You can choose either a bank which is a branch of the International bank or an Indian Bank which has branches in foreign countries also. It must only need to be made sure that there is a branch of such a bank in the foreign country. The bank shall have policies of currency exchange and they might also have certain schemes which can help in cutting costs during currency exchange. Some banks also provide an option of opening an account in a foreign branch.

Open Account in Destination Country’s Bank

If the essential documents such as passport, student visa, etc. are available and ready then an account application can also be made in the bank of the foreign country. When there is a balance kept in the foreign bank, it is valued in the currency of the country of such bank and therefore shall not have to be exchanged. This option will also help in reducing the time taken in transaction processing. 

Apply for Forex Card

Forex card is a prepaid card that can be applied for with the help of your bank. The card works in the same manner as debit or credit cards and is accepted almost everywhere around the world. The card has to be updated with the amount when the balance in the card is over. The best benefit of having a Forex Card is that the exchange rates of the day when the Card was purchased and therefore the effect of rate fluctuation is solved. 

Precautions to Take During Foreign Exchange

While you can choose any of the above options as per your own comfort, there are certain precautions that must be taken while getting your currency exchange:

  • There are certain conditions to every scheme and you must take care to read each and every one carefully. 

  • There are certain extra costs which the banks put into schemes, which may be calculated on a yearly or transaction basis. They must be properly asked about and understood.

  • Different banks charge differently for the schemes and services they are providing. It is advised that you do a thorough research of different bank policies in order to make a proper decision.

  • Sometimes cards and schemes are under a particular offer period and their benefits are limited only for a period of time. Therefore you must make sure to ask your bank about the presence of such an offer.

Remember, when you deal with foreign exchange, you have to be careful about the current exchange rate. Even a slight change can have a huge impact on the final amount that you need to pay. Apart from that, you should also have an idea of the foreign currency exchange fees, ATM withdrawal limits, foreign transaction fees, and other aspects of making transactions in foreign currencies. Register with us to have our experienced study abroad counsellors guide you throughout your study abroad journey. Write to us today at abroad@collegedekho.com.

Consult Why Foreign Exchange While Studying Abroad Requires Your Attention!

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