Being Safe and Secure When You Send Money to Germany

Send Money to GermanyGermany is a bustling country of business, nightlife, food and beer. If you’re living in Singapore and wondering the best ways to transfer funds to Germany, then we have you covered with this guide. Whether it’s for personal or business reasons, there is a lot to consider. It doesn’t have to be difficult to send money to Germany doesn’t. This article will take you through everything you need to know.

For a quick comparison table of exchange rates and fees, click here.

What will be covered?

This guide will cover:

  • Personal transfer – sending money to family or friends in Germany
  • Business transfer
  • Buying or selling a property in Germany
  • Studying Overseas
  • General costs of sending money to Germany
  • Your options to send money to Germany
  • Information you’ll need for the transfer
  • General information

Personal transfer: Sending Money to Germany

There are a couple of ways you can set up a transfer from Singapore to Germany for personal reasons. We’ve outlined them below:

You can use your bank:

All Singaporean banks will support the Euro (EUR), however, they will charge you a high international transfer fee, as well as an uncompetitive exchange rate, but it is an option.

You can use money transfer companies:

These companies will offer you a better exchange rate and lower fees. Here are some providers that transfer money from Singapore to Germany:

Our recommendation is OFX due to great value on transfers between SGD and EUR.

Business transfer: Sending Money to Germany

Two factors are really important to consider if you’re making business transfers between Singapore and Germany;

  1. Firstly, the exchange rate margin. This is the difference between the wholesale exchange rate (that you find on XE or Google) and the rate you actually get for the transaction.
  2. The additional business products they offer such as forward exchange contracts, foreign currency accounts or limit orders.

You can use any of the companies we listed earlier to make business transfers between Singapore and Germany. For business transfers, we like HiFX for a couple of reasons. They have competitive rates and don’t charge any transaction fees which gives you the opportunity to maximise your overseas payments. Additionally, they offer foreign exchange accounts which are helpful if you would like to hold the funds in a foreign currency and exchange them when you’re ready.

Buying or Selling property: Sending Money to Germany

Buying or selling property abroad can be a complicated process, especially when it comes to working out the best way to send or receive such a large amount internationally. Because of this, we’d recommend that you find a money transfer provider that has presence in both Singapore and Germany to help you on both ends if you need it.

Our choice would be TorFX for property settlement transfers. You are assigned an account manager which means that you have personalised support if you need it throughout the process.

Paying Overseas Tuition Fees

There is no denying that studying is expensive. If you’re studying abroad it can be even more so. You may not be eligible for student loans, have additional living expenses and you have to work out how best to get your money from home, to wherever you are studying. Sometimes the amount of money you transfer could be small, or it could be large. As a result there are two things to keep in mind;

  • For larger payments the most important aspect of the transfer is the exchange rate you get. You want to try and find the most competitive rate available.
  • For smaller payments, you should keep an eye on the transfer fees as these can make a big difference to the amount you’re sending.

There are many methods of transferring funds abroad, but we like HiFX as they are great for saving on those hefty costs when paying for things like bills.

Total Cost of sending money to Germany

It can be tricky to estimate exactly how much it will cost to transfer money internationally. This is because there are so many factors that affect it. The exchange rate, the fees, the currency you’re sending to, the recipient, and the way the funds are being sent and received. The most common fees to be aware of are:

  1. A transfer fee
  2. Exchange rate margin: the difference you will pay between the wholesale exchange rate on xe.com and the rate you actually get
  3. Bank fees: The fees that you bank will charge for sending the money to the correct account overseas.
  4. Receiving bank fees: The fees the receiving bank will charge you for converting into the correct currency.

All the options for sending money to Germany

There are a number of ways that you can send money from Singapore to Germany, each with different pros and cons to their use. We’ve outlined the major options below.

Via your bank

Using your bank is an easy and quick way to transfer fees and can normally send the money successfully within 3-5 business days. Generally, banks will have uncompetitive exchange rates and can charge hefty fees which make them unattractive if you’re sending large amounts of money abroad.

Check with your bank and research the fees and exchange rates based on the amount you plan to send over before making a decision.

Paypal

Paypal is a convenient and very popular way of transferring money abroad. It is also by far the quickest, with transfers sometimes being processed in minutes. Because of this speed, it is great for smaller amounts under $1000SGD. While the exchange rate will generally be similar to the banks, the fees are slightly less. It’s particularly handy if you are paying from your own Paypal account directly into another Paypal account.

A money transfer company

Money transfers companies will offer you the best value for your transfer. Most don’t charge very large fees, while some don’t charge any at all. There are a large number of these companies available to you and you do need to create an account with them to make the transfer. This extra effort is well worth it though if you’re sending anywhere between $1000 to $1,000,000SGD. Each of the companies available will have different minimum and maximum transfers set, and the transfers themselves will generally take about a business day longer than the banks.

You will need to create an account with the company you choose before sending the money – you can do this online:

  • Register your details on the website. You will need I.D handy for this.
  • Account needs to then be approved, and you’ll receive your login details.
  • Enter the bank details of where you are sending the money, that is, the ‘Beneficiary’ or ‘Recipient’
  • You will get a quote based on the fees and exchange rate for sending the money.
  • Once you’re happy with the quote provided to you, you can confirm the transfers and fund it from your local account.

Information required to send money to Germany

You’ll need the details of the bank account you are sending the money to i.e. the Beneficiary or Recipient details. These details will be:

  • Account name of your Recipient
  • Their address
  • Their SWIFT code

SWIFT codes

Swift codes for the biggest banks in Germany:

Deutsche Bank AG : DEUTDEFFXXX

Commerzbank AG : COBADEFFXXX

DZ Bank AG : GENODEFFXXX

KfW Group : KFWIDEFFXXX

General Information: What are the pros and cons?

There are pros and cons for every option when it comes to money transfers. For speedy transfers, companies like PayPal and Western Union won’t offer competitive rates but will make your transfers quickly. Banks will take one to two business days in comparison and money transfer companies, that will offer the best value for money, can take 2-3 business days.

It’s really important that you check the method that you choose to make sure they’re able to service you in the way you need. Different companies will have different minimum and maximum amounts set and charge different fees.

Case Study

Jessica has moved from Germany to Singapore on a working holiday visa. As she will be in Singapore for at least a year, she has decided to set up a bank account with DBS Bank.

Jessica wants to send home some money to her brother for his birthday and decides to do it through her bank. DBS Bank processed it fast, with minimum hassle and her brother receives the payment exactly on his birthday.

Unfortunately, Jessica didn’t realise that transferring money this way meant that the exchange rate and fees were deducted from the amount her brother received. This meant that when Jessica’s brother told her how much he received in Euros, she was disappointed to find it was less than what she intended. As a result, she had to make another transfer to make up for it and was subject to more fees again.

 

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