European Union comprises of 27 nations, where 20 countries are having Euro as an official currency in daily usage, whereas other nations such as Poland, Bulgaria, Hungary, Romania, Sweden, Czech Republic as well as Denmark use their own currencies. This results into varying financial landscape over the Europe, may leading to difficulties and confusion for many international students.
However, there are number of steps and tips which can be followed to ensure the minimal integration efforts into European environment, especially financial practices:
1.Understanding Local Currency
It would be evident that respective countries would have their currencies in utilization, where before travelling, it is advisable to learn more about the slangs used in transactions in locality as well as payment methods.
Moreover, one can monitor the exchange rates for saving the maximum amount in transaction and currency conversion charges. For this, it is advisable to refer the European Central Bank’s daily exchange rates for ensuring the savings in exchange rates.
2.Reviewing the Local Banking System
According to the country of destination, refer the banking solutions being offered by the respective banks and financial institutions which may suit to your needs as a student. Also, refer to the requirements to open the account as well as charges and benefits offered as a student for the account segment.
Opening of the Bank Account
Opening a student bank account in Europe is more than just a convenience, it is the essential requirement for international students, as it is challenging to manage their finances in a foreign country without a local bank account. There are number of reasons why a bank account is inevitable to have, being a student:
i) Management of Daily Expenses
It becomes much simpler to manage the financial transactions with a local bank account, whether you would be paying for groceries, rental or bills.
If it is carried out from the account of your home country, it would result into hefty cross-currency transaction charges, resulting into unnecessary expenses.
ii) Receiving Scholarship and Payments
Possessing a local bank account is essential to receive the scholarship, grant or inward remittances from your family and friends.
Many universities and funding organizations requires local account for the payment of fees via direct debits.
iii) Building Credit History
Developing the credit in a new country will help you in future, particularly if you intend to stay after the studies completion.
A local bank account is often the first step in building that credit history, which could help you get loans or rent an apartment.
iv) Signing Up for Subscriptions
In many European countries, certain services and subscriptions require a local bank account. For example, you’ll need a Dutch bank account (IBAN) to sign up for a mobile phone subscription or other local services in the Netherlands. Accessing these essential services can be troublesome, if not impossible, without a local bank account.
Having a student bank account in Europe simplifies your day-to-day financial management. Additionally, it provides access to opportunities and services to make your life overseas easier.
3.Student Banking Myths
Going through the process of opening a student bank account in a foreign country can be tricky, especially with so much conflicting information around you. To help you feel more confident, there are number of cloudy myths which requires apt answers.
Myth 1: Requiring Physical Branch Visit.
Reality: One of the most persistent myths is that you must visit a physical bank branch in person to open an account, which isn’t true. Many European banks, especially mobile banks like bunq, allow you to open a new account online. You can complete the entire process from the comfort of your home, whether you’re already in the country or still preparing to move. This convenience means you can have everything set up and ready before you land, saving you time and hassle during your transition.
There are number of banks and digital banking services providers in Europe as below:
Bunq
It is one of the renowned Dutch online banks, providing freedom in banking all over the Europe. The bank’s mobile apps are feature rich and offer full-fledged services across the Europe, such as splitting bills, sending payments and budgeting for the students and instant free transfers across the bank accounts in Europe.
Monese
Monese offers the competitive currency rates for the students to send and receive the money across the Europe and home country. Monese Classic Card offers the best option in terms of ATM withdrawals and online transactions as well as having minimal transaction fees for transfers, making it convenient and affordable for the student.
Myth 2: Requiring a Tax ID Number
Reality: Another common misconception is that you can only open a bank account if you provide a tax ID number at the time of account opening. Many banks, including bunq, allow you to open a bunq account first and then submit the tax number within 90 days. This feature greatly benefits new students who may not have a TIN yet. It allows you to open an account quickly and easily using your phone, ID, and a brief verification process. No paperwork, visa, or residence permit is needed to set up your account.
Myth 3: Limited Acceptance of Mobile Banks
Reality: Some students worry that mobile banks will not be accepted by their university or government offices, particularly for tuition payments, rent, or visa applications. However, this is not the case. Mobile banks are fully recognized and accepted by universities, housing agencies, and government offices across Europe. These banks provide you with all the necessary banking features, including an IBAN, that you would expect from a traditional bank, ensuring you can meet all your financial obligations without issue.
4.Country-Specific Guides
Banking requirements and processes can vary from country to country within Europe. To help you navigate these differences, there are guides for the most popular destinations for international students: The Netherlands, Germany, France, Spain, and Ireland. If you’re heading to a different European country, there is a relevant elementary information which would sufficiently help the student.
Germany
Required Documents:
-Passport or national ID card
-Visa or residence permit
-Proof of address (e.g., Anmeldung, which is the registration of your residence)
-Proof of enrollment at a German university
Popular Banks:
Deutsche Bank, Sparkasse, and Commerzbank are widely used by students, offering tailored student accounts with various benefits.
France
Required Documents:
-Passport or EU ID card
-Proof of address (e.g., utility bill, rental contract)
-Student card or proof of enrollment at a French university
Popular Banks:
BNP Paribas, Société Générale, and Crédit Agricole are traditional banks that offer student accounts with various perks.
Spain
Required Documents:
-Passport or NIE (Foreigner Identity Number)
-Proof of enrollment at a Spanish educational institution
-Proof of address (e.g., rental contract, utility bill)
Popular Banks:
Santander, BBVA, and CaixaBank are some traditional banks that offer student-friendly banking services.
The Netherlands
Required Documents:
-Passport or valid ID
-Proof of address (e.g., rental contract, utility bill)
-Proof of enrollment at a Dutch educational institution
Popular Banks:
Traditional banks like ING, ABN AMRO, and Rabobank are popular among students. These banks typically offer student accounts with low or no fees.
Ireland
Required Documents:
-Passport or national ID card
-Proof of address (e.g., utility bill, rental contract)
-Proof of enrollment at an Irish university
Popular Banks:
Bank of Ireland, AIB, and Ulster Bank are the go-to choices for many students, offering straightforward student account options.
Other European Countries
If you’re heading to a country not covered in this guide, here are some helpful tips on how to find the banking information you need:
| University Websites: | Many universities provide in-depth guidance on opening a bank account in their country. Check the financial guidance sections or international student sections on university’s website. |
| Beneficial Resources: | Universities often list recommended banks, required documents, and account types specifically for international students. |
| Tips for Research: | Use keywords like “student banking” and “international students” when searching university websites or Google to find the most relevant and up-to-date information. |
| Why this Matters: | Trusted sources like universities provide accurate, country-specific advice which can help you navigate the local banking system more effectively. |
5.How to Choose the Right Bank for You
Choosing the right bank as an international student in Europe is a crucial decision that can significantly impact your financial experience abroad. With various traditional and mobile banking options available, be sure to weigh the pros and cons of each and also consider your specific needs.
Traditional Banks vs. Mobile Banks
When deciding between traditional and mobile banks, the choice often boils down to convenience and personal preference. Traditional banks offer the security of in-person service and a wide range of financial products but usually come with higher fees and the need to visit physical branches. On the other hand, mobile banks like bunq provide a fully online experience with lesser fees, advanced mobile app features, and greater flexibility, making them a popular choice among students who value convenience and modern banking solutions. For better insights on choosing the right bank, you can explore our detailed article on the differences between traditional and mobile banks.
What to Consider When Choosing a Bank
| Fees: | check over the monthly withdrawal, and international transfer fees to reduce costs. |
| Accessibility: | It depends whether a person wants fully online experience or branch visit inclusion as well. |
| Additional Benefits: | Reviewing for competitive interest rates, budgeting tool and travel perks fitting the lifestyle. |
6.Managing Your Student Bank Account
Once you’ve opened your student bank account, effectively managing your finances becomes essential for a smooth and stress-free experience during your time abroad. Here are some important tips and tools to help you stay on top of your financial game.
Budgeting Tips
Creating and sticking to a budget is crucial for managing your expenses as a student. Here’s how you can get started:
Track Your Income and Expenses: Start by listing all your sources of income, such as scholarships, part-time jobs, or financial support from home. Then, classify your expenses into fixed costs (like rent and utilities) and variable costs (like groceries and entertainment).
Set Spending Limits: Set realistic spending limits for different categories based on your income and expenses. This approach will help you avoid overspending and ensure you have enough left for savings or unexpected costs.
Review and Adjust Regularly: Your financial situation might change over time, so it’s essential to review your budget regularly and adjust as needed.
7.Set Up Online Banking and Budgeting Tools
Once your account is activated, take some time to explore the online banking features offered by your bank. You’ll have access to a range of tools designed to help you manage your money more effectively:
Spending Categorization: Automatically classify your expenses to get a clear picture of where your money is going.
Real-Time Notifications: Receive instant transaction updates, helping you stay on top of your finances.
Savings Goals: Set specific goals within the app to help you save for future expenses.
By effectively managing your student bank account, you’ll keep your finances in order, reduce stress and enjoy your time abroad with greater peace of mind. You can properly manage your financial future with the right tools and practices
Look no further than Focus Education to start your education journey to Europe. Our expert consultants provide tailored guidance to help you get admission at good institutions in country of your preference in the EU. Reach out to Focus Education today to take the next step toward your academic future in Europe!
