Copy/paste utf8 words in shell

I am using the linux distro on the pi, to do some work related stuff.
I need to be able to copy/paste words like Textschlüssel in the console but of course this doesnt work right now. The ü is getting all messed up.
Is there a way i can install something to be able to type/paste German words ?
Basically i want the shell to support German and English characters.
I dont care about Kodi support. I need to reference some database names to convert a mdb database to mysql.

ps: I am using putty, and have the UTF8 option enabled…I can see letters like ü, the problem is when i copy/paste them they get all weird on me.


Is this what you have enabled?