Refund of CIBC GIC deducted more than 400 dollars

[CommentDebate]

How many days was the GIC amount in that bank. Did you earn any interest?

 

[edaxe]

This is due to fx rate differences on the buy and sell side. This is normal and how banking works gloabally where you are exchanging currencies. I don't see there's anything you can do since you agreed to this when you signed up for the GIC. See CIBC's terms and conditions:

https://www.cibc.com/content/dam/special_offers/international-student-gic/isbo-terms-and-conditions-en.pdf

Returns and Refunds: A. If, for whatever reason, a funds transfer or any other payment you make via the Online Platform is returned or refunded to you, we will reconvert the returned or refunded funds at the then-prevailing CIBC foreign exchange rate for the relevant currency pair. This foreign exchange rate may be different than the one quoted to you when you transferred funds to us. The funds will be transferred back to the exact same bank and account they were originally sent from. This means you may not receive the amount that you originally transferred or paid and you shall be responsible for any resulting Losses, including any foreign exchange losses due to fluctuations in foreign currency pricing, and any intermediary bank charges or fees. We may also charge you a refund processing fee, which will be disclosed to you on the Online Platform.

A spread of 5 dollars in buying-selling rates is still a lot.

 

[edaxe]

How many days was the GIC amount in that bank. Did you earn any interest?

4 months. Bought fro 56$, refunded at 53$(while the buying rate at the time of refund was 59$)

 

[edaxe]

Buying and Selling rates are always different. That's why. Whatever the selling rate of the intermediary bank was, you got it.

5-6 dollar difference? Like I said, even if it's a retail bank, it took half my family's monthly income without informing me upfront about the spread.

 

[jweekend]

5-6 dollar difference? Like I said, even if it's a retail bank, it took half my family's monthly income without informing me upfront about the spread.

What 5 dollar difference? You mean 5 rupee? That's 0.09 Canadian dollars

 

[edaxe]

What 5 dollar difference? You mean 5 rupee? That's 0.09 Canadian dollars

Nope 53.890925 CAD - 58.541154 CAD difference at the time of refund.

 

[jweekend]

Nope 53.890925 CAD - 58.541154 CAD difference at the time of refund.

That's rupee not cad

1 CAD = 53.90925 Rupee

Sorry but I don't think you understand the slightest about foreign exchange rates.

 

[edaxe]

That's rupee not cad

1 CAD = 53.90925 Rupee

Sorry but I don't think you understand the slightest about foreign exchange rates.

Oh I'm sorry, I was overthinking, but 5 rupee spread is still huge. I lost 27,000 rupees overall anyway, so it's irrelevant that I said 5$ difference. It still translates to around 400$ dollars loss.

 

[jweekend]

Oh I'm sorry, I was overthinking, but 5 rupee spread is still huge. I lost 27,000 rupees overall anyway.

You paid 56.45571 Rupees, you received 53.90925 Rupees

That's less than 5% spread. That's typical for a bank exchange rate for low volume transaction.

 

[edaxe]

You paid 56.45571 Rupees, you received 53.90925 Rupees

That's less than 5% spread. That's typical for a bank exchange rate for low volume transaction.

I bought at 56.90925 4 months ago. Now the rate is 58.541154. So the selling rate is 53.90925 now which is huge as of now. It's not like I was getting interest on it, so it's a loss in 4 months. That's the 5% I was talking about.

 

[jweekend]

I bought at 56.90925 4 months ago. Now the rate is 58.541154. So the selling rate is 53.90925 now which is huge as of now. It's not like I was getting interest on it, so it's a loss in 4 months. That's the 5% I was talking about.

400 dollars is still less than 5% of the 10,000 CAD. There is nothing noticeably wrong with that

 

[edaxe]

400 dollars is still less than 5% of the 10,000 CAD. There is nothing noticeably wrong with that

I'm not sure if you're joking right now. Look at my original post, in CAD I got back 9484 CAD which is clearly more than 5% in CAD. What's noticeably wrong with that is I wasn't informed about this spread which is never a win-win if you refund.

I'm sorry I was talking in USD for the last replies.

 

[jweekend]

I'm not sure if you're joking right now. Look at my original post, in CAD I got back 9484 CAD which is clearly more than 5% in CAD. What's noticeably wrong with that is I wasn't informed about this spread which is never a win-win if you refund.

I'm sorry I was talking in USD for the last replies.

Why should it be mentioned to you? Receiving it back in INR was never the point of the GIC.

The rates can be obtained by just ASKING them beforehand, right? Did you do it?

It's not like they over charged you or they used an incorrect exchange rate...

 

[edaxe]

Why should it be mentioned to you? Receiving it back in INR was never the point of the GIC.

The rates can be obtained by just ASKING them beforehand, right? Did you do it?

It's not like they over charged you or they used an incorrect exchange rate...

I did as I said in my post. I'm gonna assume you think there's nothing wrong with a 53-58 spread, without informing the source of the exchange rate.

 

[visaaaa]

I did as I said in my post. I'm gonna assume you think there's nothing wrong with a 53-58 spread, without informing the source of the exchange rate.

dude banks always do that banks sell you currency at higher rate and sell them back and lower rate very common