GIC - Be mindful of losses you will incur

[itsmecan]

Just bear in mind, you will lose a lot of money while you process a refund of GIC. They charge extremely high rates when you transfer them and even higher when you ask for a refund. My money has been sitting with them for over 15 months so clearly they made a lot of profit with it already. And now with a refund, they are milking it even more apart from the CAD 20 they charge. Exchange rates are very good now as compared to when I did the initial transfer so at least they should transfer the same amount at least.

Such a shameful business practice and the sad part is the victims are mainly from 3rd world countries where you cant just digest a loss of such a hard-earned amount.

When planning your budget, keep these losses in mind should things not work out.

 

[hulk358]

Just bear in mind, you will lose a lot of money while you process a refund of GIC. They charge extremely high rates when you transfer them and even higher when you ask for a refund. My money has been sitting with them for over 15 months so clearly they made a lot of profit with it already. And now with a refund, they are milking it even more apart from the CAD 20 they charge. Exchange rates are very good now as compared to when I did the initial transfer so at least they should transfer the same amount at least.

Such a shameful business practice and the sad part is the victims are mainly from 3rd world countries where you cant just digest a loss of such a hard-earned amount.

When planning your budget, keep these losses in mind should things not work out.

Didn't got what you are trying yo say i mean how much inr have you lost in this process .

 

[itsmecan]

I lost about INR 25K

 

[YVR123]

Just bear in mind, you will lose a lot of money while you process a refund of GIC. They charge extremely high rates when you transfer them and even higher when you ask for a refund. My money has been sitting with them for over 15 months so clearly they made a lot of profit with it already. And now with a refund, they are milking it even more apart from the CAD 20 they charge. Exchange rates are very good now as compared to when I did the initial transfer so at least they should transfer the same amount at least.

Such a shameful business practice and the sad part is the victims are mainly from 3rd world countries where you cant just digest a loss of such a hard-earned amount.

When planning your budget, keep these losses in mind should things not work out.

Don't get what you are trying to say. It's normal that you do not get any interest for GIC until it stayed lock the full term. And withdrawing it early will result in penalty. So what is new? Did you not know what is GIC when you purchase it? If you purchased GIC with foreign fund, the foreign exchange rate is calculated on the day of transection and same for withdrawing it early. (no one can freeze foreign exchange rate... )

https://www.investopedia.com/terms/g/gic.asp
https://westernfinancialgroup.ca/What-are-GICs-and-how-do-they-work

 

[itsmecan]

Don't get what you are trying to say. It's normal that you do not get any interest for GIC until it stayed lock the full term. And withdrawing it early will result in penalty. So what is new? Did you not know what is GIC when you purchase it? If you purchased GIC with foreign fund, the foreign exchange rate is calculated on the day of transection and same for withdrawing it early. (no one can freeze foreign exchange rate... )

https://www.investopedia.com/terms/g/gic.asp
https://westernfinancialgroup.ca/What-are-GICs-and-how-do-they-work

As I mentioned, the money lost is because they use very poor exchange rate. I withdraw GIC because visa was

Don't get what you are trying to say. It's normal that you do not get any interest for GIC until it stayed lock the full term. And withdrawing it early will result in penalty. So what is new? Did you not know what is GIC when you purchase it? If you purchased GIC with foreign fund, the foreign exchange rate is calculated on the day of transection and same for withdrawing it early. (no one can freeze foreign exchange rate... )

https://www.investopedia.com/terms/g/gic.asp
https://westernfinancialgroup.ca/What-are-GICs-and-how-do-they-work

Let me explain in simple terms

I want to buy a watch. I come to you and ask how much you are willing to sell me for

You offer $10 when the market value of that watch is $5

Now I want to sell it back to you and you ask me to give you for $5 when now the market price is $15

So eventually I lost $5 in the whole transaction.

Don't consider depreciation because above example is hypothetical.

Nothing to do with interest or early withdrawal. Bank made quite big profits out of it but the for the student he/she gets a loss. This is pure greed from banks side.

 

[aspirant256]

I lost about INR 25K

If you are crying over 25k INR then Canada is not for you mate.

 

[itsmecan]

If you are crying over 25k INR then Canada is not for you mate.

Lol, I don't know how anyone can consider giving away money like this which is borderline stealing to be ok. Its not the amount but even if someone takes even INR 1 by unfair means, it should not be ok. I know a lot of people from 3rd world like to consider situation which are unfair as 'normal' coz we get so used to getting abused. Not me.

 

[aspirant256]

Lol, I don't know how anyone can consider giving away money like this which is borderline stealing to be ok. Its not the amount but even if someone takes even INR 1 by unfair means, it should not be ok. I know a lot of people from 3rd world like to consider situation which are unfair as 'normal' coz we get so used to getting abused. Not me.

That's how it is. When we are getting into this, we know it's a money game and there will be losses at every step of the way. If you stepped in without thinking about the losses and if you will be fine with it then that's your misunderstanding.

 

[itsmecan]

That's how it is. When we are getting into this, we know it's a money game and there will be losses at every step of the way. If you stepped in without thinking about the losses and if you will be fine with it then that's your misunderstanding.

Yup, that I agree. I knew im going to loose money but definitely underestimated the scale of greed. Glad I'm finally choosing some other country.

 

[aspirant256]

Yup, that I agree. I knew im going to loose money but definitely underestimated the scale of greed. Glad I'm finally choosing some other country.

I have spent and lost so much money in it, it is what it is. Good luck to you.

 

[YVR123]

As I mentioned, the money lost is because they use very poor exchange rate. I withdraw GIC because visa was


Let me explain in simple terms

I want to buy a watch. I come to you and ask how much you are willing to sell me for

You offer $10 when the market value of that watch is $5

Now I want to sell it back to you and you ask me to give you for $5 when now the market price is $15

So eventually I lost $5 in the whole transaction.

Don't consider depreciation because above example is hypothetical.

Nothing to do with interest or early withdrawal. Bank made quite big profits out of it but the for the student he/she gets a loss. This is pure greed from banks side.

The bank doesn't care of the reason that you withdrawn early. You broke the term and withdrawn early. There is no interest paid out.
If you want to avoid exchange rate that's higher by bank, you could withdrawn in Canadian dollar and find a better place to exchange it to your own currency.

Investing in GIC is NOT like buying a watch. I think if you don't understand how GIC works, then don't invest in it. AGAIN bank doesn't care why you get GIC (immigration/visa related.... ?).

 

[itsmecan]

The bank doesn't care of the reason that you withdrawn early. You broke the term and withdrawn early. There is no interest paid out.
If you want to avoid exchange rate that's higher by bank, you could withdrawn in Canadian dollar and find a better place to exchange it to your own currency.

Investing in GIC is NOT like buying a watch. I think if you don't understand how GIC works, then don't invest in it. AGAIN bank doesn't care why you get GIC (immigration/visa related.... ?).

I am fully aware of how GIC works. I know like any other bank they don't care about matters that impact people. They are in it for profit and not charity! All clear. Also, I asked if they can transfer it in CAD, and they said they can't and can only send it back via the local currency.

I did not break any term! It is within the bank's clause that they have to refund should the visa get rejected. Also, I understand they don't pay interest which is all clear.

All I'm saying is, that the least they can do is pay back the real exchange value and not make heavy profits. These are students from the third world, not big corporates. I know they have no obligation to any social values and this is why I'm just warning others to be mindful. I don't care about the money lost as I have lost a lot more in pursuit of moving to Canada so I fully understand the risks.

Guess for some people like you passing judgement on the internet is easier than really understanding what someone is trying to say!

 

[aspirant256]

I am fully aware of how GIC works. I know like any other bank they don't care about matters that impact people. They are in it for profit and not charity! All clear. Also, I asked if they can transfer it in CAD, and they said they can't and can only send it back via the local currency.

I did not break any term! It is within the bank's clause that they have to refund should the visa get rejected. Also, I understand they don't pay interest which is all clear.

All I'm saying is, that the least they can do is pay back the real exchange value and not make heavy profits. These are students from the third world, not big corporates. I know they have no obligation to any social values and this is why I'm just warning others to be mindful. I don't care about the money lost as I have lost a lot more in pursuit of moving to Canada so I fully understand the risks.

Guess for some people like you passing judgement on the internet is easier than really understanding what someone is trying to say!

They will refund you the same currency in which you sent. If you have an INR account then your bank did conversion at their at and sent CAD to CIBC. Now CIBC will refund in CAD to your bank but in absence of you having a CAD account that money will be converted to INR at your bank. They also have to refund to the same account from where it was originated due to international laws.

 

[scylla]

I am fully aware of how GIC works. I know like any other bank they don't care about matters that impact people. They are in it for profit and not charity! All clear. Also, I asked if they can transfer it in CAD, and they said they can't and can only send it back via the local currency.

I did not break any term! It is within the bank's clause that they have to refund should the visa get rejected. Also, I understand they don't pay interest which is all clear.

All I'm saying is, that the least they can do is pay back the real exchange value and not make heavy profits. These are students from the third world, not big corporates. I know they have no obligation to any social values and this is why I'm just warning others to be mindful. I don't care about the money lost as I have lost a lot more in pursuit of moving to Canada so I fully understand the risks.

Guess for some people like you passing judgement on the internet is easier than really understanding what someone is trying to say!

We understand what you are trying to say.

However this is not how exchange rates work. There's always a spread. This isn't a Canadian thing. This is how financial institutions and fx markets work globally. You're going to encounter this anywhere you go in the world. There is no risk here that's specific to Canada. It's like this everywhere.

 

[aspirant256]

We understand what you are trying to say.

However this is not how exchange rates work. There's always a spread. This isn't a Canadian thing. This is how financial institutions and fx markets work globally. You're going to encounter this anywhere you go in the world. There is no risk here that's specific to Canada. It's like this everywhere.

Banks offer current conversion rates at the time of refund, not the rate at which it was originated, not sure why CIBC is doing that to him or if it's a misunderstanding on the student's part.