Studying abroad can be a rewarding experience for Indian students, but it can also be expensive. One of the biggest expenses is the cost of sending money overseas to pay for tuition fees, living expenses, and other related costs. However, there are several ways that Indian students can reduce the cost of sending funds overseas.
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Compare exchange rates and fees
Before sending money overseas, it's important to compare exchange rates and fees offered by different money transfer providers. Some providers may offer better exchange rates but charge higher fees, while others may offer lower fees but weaker exchange rates. It's important to consider both exchange rates and fees to find the best deal.
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Use online money transfer services
Online money transfer services are often cheaper and faster than traditional methods like bank transfers. These services offer competitive exchange rates and lower fees, and they also allow students to transfer funds from the comfort of their own homes.
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Choose a non-bank money transfer provider
Non-bank money transfer providers are often more affordable than banks, which tend to charge higher fees and offer weaker exchange rates. Non-bank providers like TransferWise and Xoom offer better exchange rates and lower fees, making them a good choice for Indian students who want to reduce the cost of sending funds overseas.
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Opt for local currency transfers
When sending money overseas, it's important to choose the local currency option, which means that the recipient will receive the funds in the local currency. This is because banks and other providers often offer weaker exchange rates when converting currency, which can result in higher costs for the sender.
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Plan ahead
It's important to plan ahead when sending funds overseas. This means researching exchange rates and fees, and choosing the best money transfer provider. Students should also consider sending larger amounts of money at once, as this can result in lower fees and better exchange rates.
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Consider using a multi-currency account
Multi-currency accounts allow users to hold funds in multiple currencies, which can help them save money on exchange rates and fees. These accounts are often offered by online money transfer providers like TransferWise, and they can be a good choice for Indian students who need to transfer funds to multiple countries.
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Use a credit card
Some credit cards offer rewards and cashback on foreign transactions, which can help students save money on the cost of sending funds overseas. However, it's important to choose a credit card with low foreign transaction fees, as high fees can negate any rewards or cashback.
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Avoid using banks for smaller transfers
Banks often charge higher fees for smaller transfers, which can make them more expensive than non-bank providers. Indian students should consider using non-bank providers for smaller transfers, as they tend to offer lower fees and better exchange rates.
Conclusion
There are several ways that Indian students can reduce the cost of sending funds overseas. By comparing exchange rates and fees, using online money transfer services, choosing non-bank providers, opting for local currency transfers, planning ahead, considering multi-currency accounts, using credit cards with rewards and cashback, and avoiding banks for smaller transfers, students can save money on the cost of sending funds overseas. By doing so, they can make studying abroad more affordable and accessible.
