# Handling U.S. & Mexican Finances



## jmkinsman

I need some suggestions on the cheapest and easiest way to handle finances while I am living in Mexico. 

• I am going to be earning U.S. dollars that I will be depositing into my U.S. bank account (like what I do now while living in the U.S.)

• I am going to be earning pesos in Mexico that will be deposited into a Mexican bank account.

• I will be leaving some money in my U.S. accounts to take care of bills that I will be paying in dollars.

• I will need to transfer the rest of the money to my Mexican bank account for my use there.


*Here are the things I am trying to take into consideration:*

1) What is the cheapest way to transfer/convert my dollars to pesos? I need to figure out rates for the following: Bank to bank transfers? _(Bancomer told me it is a flat rate of $35 per transfer regardless of amount transferred.)_ Wire transfers with a company like Western Union? Transfer between accounts via paypal? Convert as much as possible at a bank here prior and bring it along as cash??

2) What bank is best to use? Someone recommended bancomer as the only bank that will allow bank accounts to tourists without fm3s, but I don't know if this is accurate. I know HSBC has branches in both the U.S. and Mexico.

3) If I can have both a Mexican and U.S. bank account with HSBC, can I just transfer money between accounts?

4) If I want to have a credit card in case of emergencies, should I just use a U.S. credit card and deal with the international charges or should I/can I get a credit card in Mexico to use there??


If anyone currently has a situation like this and has any feedback I'd greatly appreciate it!!!! I have set up my entire move except for that part of it and I'm getting a little overwhelmed with all of the scenarios and which is best. Thanks so much!!


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## sparks

If you are earning pesos then you'll have to have an FM3 with working permission ... so a bank account here is not an issue.

The other question is how much will you need here? Just a thousand or two to live on or are you buying/building a house. 

I never use a credit card here tho you can get one at a local bank with a minimum balance or $4000mx +/-. Everyone uses cash unless you are poor


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## joaquinx

jmkinsman said:


> *Here are the things I am trying to take into consideration:*
> 
> 1) What is the cheapest way to transfer/convert my dollars to pesos? I need to figure out rates for the following: Bank to bank transfers? _(Bancomer told me it is a flat rate of $35 per transfer regardless of amount transferred.)_ Wire transfers with a company like Western Union? Transfer between accounts via paypal? Convert as much as possible at a bank here prior and bring it along as cash??
> 
> 2) What bank is best to use? Someone recommended bancomer as the only bank that will allow bank accounts to tourists without fm3s, but I don't know if this is accurate. I know HSBC has branches in both the U.S. and Mexico.
> 
> 3) If I can have both a Mexican and U.S. bank account with HSBC, can I just transfer money between accounts?
> 
> 4) If I want to have a credit card in case of emergencies, should I just use a U.S. credit card and deal with the international charges or should I/can I get a credit card in Mexico to use there??
> 
> If anyone currently has a situation like this and has any feedback I'd greatly appreciate it!!!! I have set up my entire move except for that part of it and I'm getting a little overwhelmed with all of the scenarios and which is best. Thanks so much!!


1.The cheapest way is via ATM. Check with your bank to find the bank ATM that will allow you to withdraw funds without fees. Example, Bank of America and Scotia or Santander. Paypal is free but the conversion rate is highway robbery and the transfer can be up to five days from your account to Paypal and then Paypal to the payee. 35usd is the standard fee for wire transfers. (Bank of America to HSBC was two days)

2. I believe that the Bancomer advice is correct.

3. Check with HSBC in the US.

4.Most banks require an FM2 for a credit card. Bancomer, I believe, is the only bank that issues one with an FM3. The interest rates are sky-high.


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## chicois8

Hola Jim, This is what I would do, Open a Banamex USA account in the USA, you can have SS or pensions sent into the account...Also get an ATM card tied to your Savings or checking account (3000 pesos a day limit) open a Banamex account in Mexico, you will then be able to transfer dollars to pesos 
at $10,000 Dollars a day, the fee is about 20 centavos below Mexico bank rate that day ....


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## pappabee

Apart from all the other considerations there are some very easy ways to take money from a USA account and deposit it into a Mexican account.

My bank in the US is a savings and loan and all my income goes directly into that. When ever I want to move money into my Mexican account all I do is write a check for deposit and take it to my Mexican bank. Now I must get it there before 3PM (that's when the exchange closes so that the bank can tell what the exchange rate is at the moment of deposit). It will take 5-8 working days for the money to show up in my Mexican bank. There is no charge for this. I can then use my Mexican debit card to withdraw money from my Mexican account. Also with no charge.

My bank is BBVA and I know this is how it works with them. I would guess that most of the major Mexican banks have very similar programs. Just be sure you talk to one of the managers not a teller.


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## jrey

*hi*

hi sir well this is jose i am a young man who wants to make money on the good way i was cheking inf about making money i saw your advice well i was just thinking if i was able to open up a american account and mexican account by the way i live in tijuana like i was cheking a little be ago the dolla on bancomer is really high so i got this question for you . can i trasnfer moneyto my bank account to another bank account for free cuz what im try to do is buy the dollar when is too low and resale the dollar when is 
up right now i got dolllars please i need advice gracias by the way im 23 so im pretty new in this bussiness gracias








pappabee said:


> Apart from all the other considerations there are some very easy ways to take money from a USA account and deposit it into a Mexican account.
> 
> My bank in the US is a savings and loan and all my income goes directly into that. When ever I want to move money into my Mexican account all I do is write a check for deposit and take it to my Mexican bank. Now I must get it there before 3PM (that's when the exchange closes so that the bank can tell what the exchange rate is at the moment of deposit). It will take 5-8 working days for the money to show up in my Mexican bank. There is no charge for this. I can then use my Mexican debit card to withdraw money from my Mexican account. Also with no charge.
> 
> My bank is BBVA and I know this is how it works with them. I would guess that most of the major Mexican banks have very similar programs. Just be sure you talk to one of the managers not a teller.


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## makaloco

1. Transferring money: I write a check on my US account and deposit it in my Mexican (Bancomer) account. As Pappabee said, it takes time, but it's free, and the exchange rate has been better than I could get on my own. I've also used wire transfer, which works fine but has become too expensive.

2. Best bank: It may be area specific. My RE agency folks recommended Bancomer, and I've had good service from them for six years. Two of my friends use Santander and really dislike it. Don't know about the other banks.

4. Credit cards: I don't use them here, but for emergencies and online purchases I have US AmEx and my bank MasterCard. I haven't applied for one in Mexico.


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## kcowan

I do the same thing with Bancomer using TD and the visa electron debit card


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## Monty Floyd

I would suggest opening an account with BBVA Compass in the US then open an Account with BBVA Bancomer in Mexico. I was told that transfers can be made online but it may have to be by check as pappabee said.


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## telcoman

Yeah use an ATM. Open up either an HSBC account or a Bank of America Account. BOA is associated with the Canadian Scotiabank which also has a lot of branches in Mexico so you can avoid service charges.


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## Isla Verde

telcoman said:


> Yeah use an ATM. Open up either an HSBC account or a Bank of America Account. BOA is associated with the Canadian Scotiabank which also has a lot of branches in Mexico so you can avoid service charges.


BOA also has an arrangement with Santander, which allows you to withdraw pesos without paying a service charge.


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## DeLeon

I have an addendum to the OP's 3rd question.
I have HSBC accounts in the Mexico and the US. My plan is to transfer money from the Mexican account to the US account as I generate savings. The things is, it seems I would take a loss with every transfer due to the exchange rate they offer. 
For example, when I google the current rate it shows 1 MXN = .078 USD
HSBC's current transfer rate is 1 MXN = .076 USD
So if I made a transfer of $10000 MXN I would lose $20USD.

Add that up over time and it would be $100s of dollars lost in translation. Anyone have any advice on how to avoid this? Would it make more sense to make the transfer when the exchange rate leans towards 12:1 rather than 14:1. It seems to fluctuate between those two points.

Thx.


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## joaquinx

DeLeon said:


> For example, when I google the current rate it shows 1 MXN = .078 USD
> HSBC's current transfer rate is 1 MXN = .076 USD
> So if I made a transfer of $10000 MXN I would lose $20USD.


The current Interbank rate (at the time of this post) is .07826. You have to be a bank to get this rate. 

ATM rate is .07670. That the rate when banks on both ends charge you a fee.

The 1% discount rate is .07748. That's the typical currency conversion rate that you could get at ATM's. All banks charge this. BofA will give you this rate with a debit card. I can't say for other banks.


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## DeLeon

Thanks for your reply. Since I'm not a bank I suppose it doesn't do much good to think in terms of that rate. I assume there's no way to get that rate as an individual. Right?

So my best bet would just be to do the HSBC transfer as is, especially since the current exchange rate is relatively good for buying dollars in the scheme of the last couple years. Am I understanding correctly?


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## joaquinx

DeLeon said:


> So my best bet would just be to do the HSBC transfer as is, especially since the current exchange rate is relatively good for buying dollars in the scheme of the last couple years. Am I understanding correctly?


There are other methods of transferring funds. Check out XE Trade Money Transfers 

I believe this subject is the leading subject on all expat forums. Do a search on banking on this forum. It'll take some time to weed through all the posts, but you could wind up saving a few $.


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## DeLeon

Indeed I've found different related discussions in this forum and elsewhere but have yet to find exactly what I'm looking for. Maybe it's just not possible to get the interbank exchange rate. 
I checked out the XE link but you have to go through the whole sign up before it tells you what the rate would be. I don't particularly want to do that.


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## AlanMexicali

DeLeon said:


> Indeed I've found different related discussions in this forum and elsewhere but have yet to find exactly what I'm looking for. Maybe it's just not possible to get the interbank exchange rate.
> I checked out the XE link but you have to go through the whole sign up before it tells you what the rate would be. I don't particularly want to do that.


My friend thinks the "official" published rate is for million dollar exchanges scrowling on Bloomberg Business Channel etc. and rides some constant of centavos above that as a matter of fact always for lesser exchanges. This is besides any private bank rate when charging a small undisclosed commission.


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