# exchange rates



## Monty Floyd (Aug 31, 2010)

When I use the ATM here to draw out of my American bank account, who and how are the exchange rates set?


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## RVGRINGO (May 16, 2007)

I think the basic exchange rates are pretty much set by the large international banks. Your own bank will probably charge a 1% currency exchange fee on top of that; some even charge up to 3%. The bank which owns the ATM may also charge a transaction fee, making it wise to get your limit in cash each time you use one.
Depending upon interbank relationships, some of these fees may not be charged, or may be refunded to your account monthly, up to a limit. My bank allows 10 transactions per month and will refund the fees & commissions on those transactions, except for the 1% international currency exchange fee.


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## kazslo (Jun 7, 2010)

Monty Floyd said:


> When I use the ATM here to draw out of my American bank account, who and how are the exchange rates set?


When I had an account at USBank, I just called and they told me what the rate would be. What they didnt tell me was the nice currency exchange fee, forigen transaction fee, and atm fee, and poor exchange rate. Like RV said, I made sure to make it worth my while taking out cash from that account...


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## 13JohnnyL (Jun 27, 2010)

My bank in the US charges me about 3% when I take money out of the ATM here. I am also limited to 4 withdrawals per month. Even so, those fees are adding up. Can someone recommend a bank in the US with minimal fees on foreign ATM withdrawals? I usually use the ATM's at HSBC as their exchange rates seem to be the best in this area (Puebla). Their fee is about $22 pesos including IVA.


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## RVGRINGO (May 16, 2007)

Shop around, Johhny. You can find banks with nothing more than the 1% international currency exchange fee. My bank is USAA Federal Savings bank and they allow ten transactions per month with no other fees, reimbursing even the commission that you mentioned. See if you are eligible to become a member; which you can do online.
I believe that the Bank of America also has a relationship with a Mexican bank, which reduces fees to almost nothing.


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## Denmex (Mar 6, 2010)

*Using ATM's in Mexico*



13JohnnyL said:


> My bank in the US charges me about 3% when I take money out of the ATM here. I am also limited to 4 withdrawals per month. Even so, those fees are adding up. Can someone recommend a bank in the US with minimal fees on foreign ATM withdrawals? I usually use the ATM's at HSBC as their exchange rates seem to be the best in this area (Puebla). Their fee is about $22 pesos including IVA.


Johnny,
Bank of America is affiliated with Santander Bank of Mexico. Bank of America has a program called “SafeSend” that allows you to transfer funds to Mexico without cost. I’m not 100% sure of the amounts but I think it is a maximum of 3 transfers/month with a monthly limit of $3,000 USD. You can also use the ATM at Santander to withdraw funds from Bank of America (there is a limit) without cost or fees. The downside is that each time you use a BoA issued debit or credit card for purchases in Mexico there is a 3% Foreign Transfer fee. I don’t use my cards here in Mexico. And, you must complete the necessary paperwork to qualify for SafeSend at BoA while in the States.
I am retired and earn extra money as a freelance journalist. I have been living permanently in Durango, Dgo., for the past six years. I have all my receivables wired to BoA. When I need funds I have them sent to Santander either through SafeSend or I use my debit card at a Santander ATM. To date I haven’t experienced any problems. By the way, the exchange rate that I receive from Santander is always a few centavos more than the other banks are paying. 
You can check all of this out on Bank of America website. 
I hope this helps.


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## tanderson0o (Aug 30, 2009)

I also opened a BoA account for the same reason, the ATM relationship with Santander. No fees and a good exchange rate to boot. I had my first opportunity to use it last weekend at the airport in DF and in Valle de Bravo. After I made the withdrawals, I checked my account online to see what the exchange rate was for the transaction, and was pleased to find it a bit better than any of the published exchange rates for any of the larger Mexican banks (including the published Santander rate).


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## Denmex (Mar 6, 2010)

I, too, have found the exchange-rate posted by BoA is never up-to-date. Actually, I spoke with the customer service department about this. Their answer was that the rate changes so often it is impossible for them to keep it accurate. I asked them if this could be connected with a computer that would respond immediately to changes. They gave me some off-the-wall type answer that really didn't make sense.
Here are just a couple more tidbits of information that you possibly already know. If you subscribe to Skype using a U.S. address there is a monthly cost of $2.95 USD. By using this service you can make unlimited online calls to the U.S.A. and Canada without additional costs. By-the-way, the quality of the calls that I make from here in Durango is excellent. (I don’t work for Skype)
Until a few months ago I had Dish Network from the States. They re-directed their signal and I was no longer able to use that service.
There are several websites available in the States that aren’t available here in Mexico.
However, there is a website – Hotspot Shield by Anchorfree – that is free with a free download that will assign you an IP address from the States. You only use that IP address when you are logged on to Hotspot Shield. You can then use the website “Hula” to get numerous U.S. television programs and movies. A few of the television programs are up to date, but most are older.
By logging on to Hotspot Shield you can subscribe to Netflix and watch all “Play Now” movies. You must signup with Netflix using a U.S.A. mailing address.
I hope this helps.


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## joaquinx (Jul 3, 2010)

About the best exchange rate information that I know of is http://finance.yahoo.com/currency-investing


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## TundraGreen (Jul 15, 2010)

I have been meaning to post some questions on this same topic, so the discussion is timely for me. I would be interested in hearing comments on some additional options.

I seem to recall that Citibank in the US has a relation of some kind with Banamex. I haven't had any success investigating this on the web and haven't gotten around to calling CItigroup to ask them about it. Does anyone else know whether I have this correct or not.

Secondly, I have thought about getting two accounts with HSBC, one with my son's US address and dollar denominated and another with my Mexico address in pesos. HSBC is a British bank that seems to encourage offshore accounts. Does anyone know if having two accounts with HSBC would make it easy to move money to Mexico and make local withdrawals without ATM fees or currency conversion fees on individual withdrawals. 

Am I correct in inferring that many people just use a US bank account for everything. I like having a Mexican account and debit card for paying for local expenses in pesos.

Finally are there any other options for US-Mexico bank pairs that have agreements, I mean in addition to the B of A/Santander link that has been discussed in this thread?

Thanks,
Memo


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## joaquinx (Jul 3, 2010)

_Am I correct in inferring that many people just use a US bank account for everything. I like having a Mexican account and debit card for paying for local expenses in pesos._
That's what I do. I have an account with HSBC where I keep a small amount for local/monthly expenses. There is a relationship between Inter National Bank in McAllen and Banorte. I believe that Banorte owns it. I have heard that you can open an account at Banorte and then after a few months open one at INB from Mexico, saving you a trip to the border. Having both accounts permits easy transfer of funds. Anyone have info on these banks?


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## tanderson0o (Aug 30, 2009)

BBVA Bancomer in Mexico and Compassbank in the US are also related, as they are owned by the same parent company


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## TundraGreen (Jul 15, 2010)

tanderson0o said:


> BBVA Bancomer in Mexico and Compassbank in the US are also related, as they are owned by the same parent company


That is very helpful. There is a BBVA Compass branch in Boulder, CO where my son lives. And BBVA Bancomer branches seem to be very common in Mexico so maybe that is the combination I am looking for.

Memo


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## f3drivr (Nov 18, 2008)

My Wife and I have accounts with PC Financial in Canada, Bank of America in the US and Banamex in Mexico. I have a currency trading account with XETrade which is linked to all accounts that I use to exchange money from CDN to US and MXN. I pay around 1.2 cents on the dollar above interbank rate which is about 50% of what any Canadian Bank would charge me. I think the B of A/Santander combination is probably the best deal for Americans, I have withdrawn money from my B of A account and calculated the exchage rate at the time of the transaction to be around 1% above interbank. There is a chart here to compare:

Credit/Debit/ATM Cards and Foreign Exchange - FlyerGuide Wiki


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## tommympt (Sep 14, 2010)

TundraGreen said:


> I have been meaning to post some questions on this same topic, so the discussion is timely for me. I would be interested in hearing comments on some additional options.
> 
> I seem to recall that Citibank in the US has a relation of some kind with Banamex. I haven't had any success investigating this on the web and haven't gotten around to calling CItigroup to ask them about it. Does anyone else know whether I have this correct or not.
> 
> ...


Compass bank, Known as BBVA Compass Bank. Google it for links. I think you’ll find what you’re asking about.


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