For many of you, back-to-school plans are starting to look like a bit of a toss-up.

I mean, will you be studying primarily online? Will you still get to participate in Frosh Week activities? How will you cover the costs of tuition after COVID-19 squashed your chances of gaining a decent summer job? It’s hard to know for certain, given that we’ve embarked on such unprecedented times.

But, don’t panic. With the help of our friends at CIBC, we’ve got a bunch of tips on how you can make your back-to-school experience as easy as possible, financially.

That’s right! With the CIBC Smart™ for Students account, you’ll receive:

  • Unlimited free transactions including Interac e-Transfer® service1.
  • $0 monthly fee, so you can have money for things like textbooks and tuition.
  • The benefits of the account for 6 months after you graduate!

To top it all off, you’ll also get $60 when you open the account as your first CIBC chequing account, provide us your email address, register for CIBC Online or CIBC Mobile Banking, and complete three qualifying Visa*Debit purchases using the CIBC Advantage Debit Card®2.

If you’re thinking about opening a CIBC Smart for Students account to save money on monthly fees and grab that $60, you’ll probably want to check out the CIBC Dividend Visa Card for Students! You’ll get $25 cash back after you make your first purchase within 4 months of activating your card3.

STACK YOUR OFFERS: Basically, you can layer your $60 Smart for Students offer to get up to $95 in value with the student banking bundle. That’s right, good things come in threes! Get $60 with the CIBC Smart for Students account and no monthly fee2, $25 cash back after your first purchase with the CIBC Dividend Visa Card for Students for a no annual fee cash back credit card3, and a $10 value SPC membership free every year as an eligible CIBC student client5. You’ll automatically receive free exclusive access to the new SPC+ for bigger discounts and over 450 deals, special experiences, and more.

With the CIBC Dividend Visa Card for Students, you’ll also benefit from:

  • 2% cash back on eligible grocery purchases4.
  • Up to 1% cash back on everyday purchases like books, movies, food, and more4.

But, back to the credit thing. When it comes time to making adult decisions like buying a car, home, or even getting a job, you’ll often have to prove your diligence and reliability through your credit score. So, having good credit can open up more opportunities for you later on.

Plus, for many students, credit (lines of credit, credit cards, etc.) is the key that unlocks the doors to a post-secondary education.

It might all seem a little daunting at first, but finding the means to pursue higher education is a major life milestone, and your first steps towards a career you love.

Sure, what you don’t understand can be a little freaky, especially when it comes to a new responsibility that will affect your life for years to come. But as the old mantra goes, “knowledge is power.” So, let’s empower you by helping you to better understand your student line of credit.

One of the most important things to understand when it comes to credit?

Interest.

What is interest?

Interest is a fee you pay to someone who lends you money. You’re paying for the privilege of having the money now, as opposed to having to save for it and wait.

FUN FACT, THOUGH: You can also EARN interest. For example, when you open a savings account, the bank pays YOU a small percentage regularly for keeping your money there. The longer your money stays put, the more interest you earn.

What your interest rate is:

Interest is calculated as a percentage of the money you borrow, over a certain period of time. The percentage is called an interest rate.

The interest rate on your student line of credit will likely be based on the prime rate. The prime rate is the interest rate that a lender announces as its reference rate. It can change at any time, and therefore the interest rate will change whenever the prime rate changes.

Interest will be calculated on the daily balance of your line of credit at the end of each day and compounded monthly. This means that any unpaid interest will be added to the balance of your Educational Line of Credit.

Think of compound interest as “interest on interest” which can be particularly impactful if you don’t make your minimum payment on time.

CIBC Education Line of Credit: 

With the CIBC Education Line of Credit. of up to $60,000 you’ll only be required to pay the interest portion accrued over the month on the amount of money you actually used6. This will result in a lower monthly payment amount–making it more manageable during your studies.

If you have any extra money lying around, it is always a good idea to make an additional payment to reduce the outstanding balance and avoid paying more interest next month.

After graduating from your program, you’ll have the option of converting your student line of credit to a regular line of credit, or to a personal loan of up to 20 years to help make your monthly repayments more manageable, at the same low rate6. You’ll always have the option of paying off the loan at any time without penalty.

We recommend the CIBC Education Line of Credit, here’s why:

  • Term: Open Ended
  • Amount: Up to $60,000 is available throughout the program as a full-time or part-time student. There is a $15,000 yearly limit as a full-time undergraduate student or a $7,500 yearly limit as a part-time undergraduate student, assuming that you complete your degree within 10 years. There is no yearly limit as a graduate student, only the program recommended limit of $60,000!
  • Security: Optional

For more information on the CIBC Education Line of Credit and eligibility requirements, click here.

Getting a student line of credit is one of those big life milestones, like buying a house or car, and an official milestone on the road to “adulting.”

Speaking of milestones, did you know that when you open an eligible CIBC student bank account, credit card or line of credit, you’ll also receive an automatic entry into Full Ride for a chance to win 4 years’ tuition ◊◊ . Someone’s gotta win, and it could be you!

See how much you know about back to school banking tips in our latest trivia round of Just for Funds! You could win $1,000* just for playing!

 

 

* NO PURCHASE NECESSARY. Open August 16 2020 at 4:00 pm Eastern Time (“ET”) to September 15 2020 at 11:59:59p.m. ET to legal residents of Canada who are sixteen (16) years of age or older and are current students of an accredited Canadian university, college or secondary school. One (1) $1,000 prize available. Odds of winning depend on the number of eligible entries received. Math skill test required. Full Contest Rules available here.

† To be eligible for a free SPC membership, you must hold an eligible CIBC product at the time you register for the membership, which you must do through CIBC online or mobile banking. Eligible CIBC products include a CIBC Youth or Student bank account, Student credit card or Student line of credit. A complete list of eligible CIBC products can be found at cibc.com/spc. Joint account holders of eligible CIBC products are not eligible for membership. You must also be a legal resident of Canada who is fourteen (14) years of age or over, but under the age of thirty (30) years if the eligible CIBC product you use to qualify for the membership is a student line of credit. The membership will automatically renew and remain in effect for as long as you hold an eligible CIBC product. Trade-mark/registered trademark of Student Price Card Ltd.

1. A transaction includes cheques, withdrawals, transfers, pre-authorized payments, bill payments (including CIBC Credit Cards and CIBC Personal Lines of Credit) and debit purchases. For CIBC eAdvantage Savings Accounts, a transaction does not include transfers to your other CIBC bank account(s) using the transfer function on CIBC Online Banking, CIBC Mobile Banking, CIBC Telephone Banking and at CIBC ATMs. Wire payments, and transactions in foreign currency (including cheques written in currencies other than the account currency).

‡ The “Up to $95 in total value Student Offers” begins on June 2, 2020 and is available for a limited time consisting of the following components:

2 The Smart for Student $60 Offer begins on February 29, 2020 at 12:01 a.m. (ET) and ends on October 30, 2020 at 11:59 p.m. (ET). Offer only open to Canadian residents who are not holders or joint holders of a CIBC chequing account. To qualify, open a CIBC Smart Account for students and provide your email address. Within two (2) months, you must: (i) register for and sign on to CIBC Online Banking or CIBC Mobile Banking; and (ii) complete at least three (3) eligible Visa Debit purchases with your CIBC Advantage Debit Card® from the Account. Offer cannot be combined with any other offer, reward or rebate, unless otherwise indicated. The cash reward will be deposited into your account five (5) months after you have completed the required transactions. Other conditions apply. Visit a CIBC banking centre or visit cibc.com/studentoffer.

3. You can qualify for this offer if you apply and are approved for a new CIBC DividendVisa Card for Students starting June 2, 2020. Offer is available for a limited time. If you apply and are approved for a new CIBC Dividend Visa Card for Students, you will receive a one-time $25 cash back on your first purchase made within the first 4 monthly statement periods. Cash back is awarded at the end of the year as a credit on your December statement. Offer applies to newly approved card accounts only; transfers from an existing CIBC credit card to a CIBC Dividend VisaCard for Students are excluded. This offer is not transferable. This offer may be withdrawn or changed without prior notice at any time. This offer may be revoked if you appear to be manipulating or abusing it, or are engaged in any suspicious or fraudulent activity, as determined by CIBC in its sole discretion.

4 Cash back is earned on a tiered basis on card purchases less returns and not on cash advances, interest, fees, balance transfers, payments or CIBC Convenience Cheques. Cash back is calculated as follows: on the first $6,000 in net annual card purchases excluding grocery on your account, the cash back earned is 0.5%; on amounts greater than $6,000 in net annual purchases excluding grocery the cash back earned is 1%. Earn 2% cash back on purchases (less returns) at merchants classified by the credit card network as grocery stores. All other purchases earn cash back at the regular tiered rate. The 2% cash back offer is only available on the first $6,000 in net annual card purchases at grocery merchants on your account; after that, net card purchases at grocery merchants will earn cash back at 1%. The $6,000 limit will reset to zero after the day your December statement is printed. Terms, conditions and eligible merchant categories may change without notice. Deductions of cash back for returns are made at the earn rate applicable at the time the return occurs. Credits for returns made on your account may result in a deduction of cash back at a higher earn rate, even though the return may relate to a purchase that earned cash back at a lower rate. The cash back is accumulated each month, beginning with the January Visa statement, and awarded at the end of the year as a credit on the December statement or, in limited circumstances, at such other time as may be permitted by CIBC. Credit card account must be open and in good standing at the time the cash back is awarded. Cash back will be credited to the primary cardholder’s account.

5 The $10 SPC membership fee waiver for Students Offer: To be eligible for a free SPC membership, you must hold an eligible CIBC product at the time you register for the membership, which you must do through CIBC online or mobile banking. Eligible CIBC products include a CIBC Youth or Student bank account, Student credit card or Student line of credit. A complete list of eligible CIBC products can be found at cibc.com/spc. Joint account holders of eligible CIBC products are not eligible for membership. You must also be a legal resident of Canada who is fourteen (14) years of age or over, but under the age of thirty (30) years if the eligible CIBC product you use to qualify for the membership is a student line of credit. The membership will automatically renew and remain in effect for as long as you hold an eligible CIBC product.

6 Applicants must meet all CIBC lending criteria. Certain conditions and restrictions apply. Credit limit determined by CIBC, in its sole discretion. Qualified guarantor may be required. Products and their features may change at any time. This is a general description only. For more information and product terms and conditions, consult product brochures or call 1-866-525-8622O pens your phone app.

◊◊ NO PURCHASE NECESSARY. Open January 1st, 2020 to December 31st, 2020 to legal residents of Canada who are sixteen (16) years of age or older and are current students of an accredited Canadian university, college or secondary school. One (1) Grand Prize available to be won consisting of: one (1) cheque for $8,750 made payable to the winner; one (1) 1-year GIC for $8,750 opened in the winner’s name; one (1) 2-year GIC for $8,750 opened in the winner’s name, and one (1) 3-year GIC for $8,750 opened in the winner’s name. Odds of winning depend on number of eligible entries received. Math skill testing question required. Full Contest Rules.

®Registered trademarks of CIBC or its subsidiaries.

The CIBC logo is a trademark of CIBC, used under license. Interac e-Transfer is a trademark of Interac Inc. used under license.





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