# Financial advice



## byresch (Mar 4, 2016)

I currently have my pension on direct deposit to a US bank, USAA, and use ATMs here in Rosarito to get cash. Would it be better to use a Mexican bank for direct deposit to save on fees?


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## Isla Verde (Oct 19, 2011)

byresch said:


> I currently have my pension on direct deposit to a US bank, USAA, and use ATMs here in Rosarito to get cash. Would it be better to use a Mexican bank for direct deposit to save on fees?


That's what I do. I have my SS pension payments sent to my Santander account and withdraw money as needed in pesos.


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## makaloco (Mar 26, 2009)

Like Isla Verde, I have my Social Security payments direct-deposited to my bank in Mexico. It works out well for me because I spend that amount each month on living expenses, and the deposit system is very reliable. If my expenses exceed my SS payments, I use my US bank debit card to get more cash from an ATM.


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## perropedorro (Mar 19, 2016)

Isla Verde said:


> I have my SS pension payments sent to my Santander account and withdraw money as needed in pesos.


How does that work? I opened an account at Santander last month and they seemed unaware of direct deposit.


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## Isla Verde (Oct 19, 2011)

perropedorro said:


> How does that work? I opened an account at Santander last month and they seemed unaware of direct deposit.


Santander doesn't do it. You can contact the Federal Benefits Unit at the US Embassy in Mexico City for help: [email protected]. They may take a day or two to get back to you.


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## makaloco (Mar 26, 2009)

When I applied for Social Security, I was told to do it through the nearest Foreign Benefits Unit, which at the time was in Guadalajara. They set up my direct deposit to Bancomer at the same time. The bank wasn’t directly involved, but I did need to provide the FBU with information from my bank statement, particularly the “clabe”.


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## RVGRINGO (May 16, 2007)

byresch said:


> I currently have my pension on direct deposit to a US bank, USAA, and use ATMs here in Rosarito to get cash. Would it be better to use a Mexican bank for direct deposit to save on fees?


No, it would not. USAA refunds those fees at the end of each month; up to ten, I think. We lived in Mexico for 13 years with just USAA, raising the daily limit to reduce the number of ATM visits to get cash. For rare large purchases, like a house or car, USAA was contacted to arrange special transfers or removal of limits for a day, etc. It worked perfectly. We did everything online, with maybe only two phone calls in all those years. I strongly suggest that you keep your USAA banking and we never found the need for a Mexican bank. They do not offer the kind of service or protections that you have in the USA, especially with USAA; my bank since 1959.


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## ojosazules11 (Nov 3, 2013)

makaloco said:


> When I applied for Social Security, I was told to do it through the nearest Foreign Benefits Unit, which at the time was in Guadalajara. They set up my direct deposit to Bancomer at the same time. The bank wasn’t directly involved, but I did need to provide the FBU with information from my bank statement, particularly the “clabe”.


Just for clarification regarding the CLABE (from Wikipedia):

"The CLABE (Clave Bancaria Estandarizada, Spanish for "standardized banking cipher") is a banking standard for the numbering of bank accounts in Mexico. This standard is a requirement for the sending and receiving of domestic inter-bank electronic funds transfer since June 1, 2004. The CLABE account code has 18 digits."

While the above indicates a requirement for domestic inter-bank transfers, it is also a requirement for international inter-bank transfers. 

Here's the link which indicates what each number stands for:
https://en.m.wikipedia.org/wiki/CLABE


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## Isla Verde (Oct 19, 2011)

RVGRINGO said:


> No, it would not. USAA refunds those fees at the end of each month; up to ten, I think. We lived in Mexico for 13 years with just USAA, raising the daily limit to reduce the number of ATM visits to get cash. For rare large purchases, like a house or car, USAA was contacted to arrange special transfers or removal of limits for a day, etc. It worked perfectly. We did everything online, with maybe only two phone calls in all those years. I strongly suggest that you keep your USAA banking and we never found the need for a Mexican bank. They do not offer the kind of service or protections that you have in the USA, especially with USAA; my bank since 1959.


RV, I disagree that having a Mexican bank account is fairly useless. I use mine to pay my Telmex and FCE bills, which is done automatically, thus saving me trips to the bank every month. In addition, when I do editing/translation work for Mexican clients, they can pay me by making deposits to my account.


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## RVGRINGO (May 16, 2007)

We paid all of the Telmex & CFE bills at the grocery check-out, etc. Unfortunately, we never got a Mexican check, or had any receivables. It worked just fine for us with USAA banking and ATMs. Since you work, and have Mexican income, tax status and such, you would need a Mexican bank, etc.


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## chuck846 (Jan 15, 2016)

Isla Verde said:


> RV, I disagree that having a Mexican bank account is fairly useless. I use mine to pay my Telmex and FCE bills, which is done automatically, thus saving me trips to the bank every month. In addition, when I do editing/translation work for Mexican clients, they can pay me by making deposits to my account.


Agreed. We have accounts at two Mexican banks. One is really just a place holder in case something changes at the other at some point. So at our primary bank we have a) credit/debit cards b) our home insurance c) car insurance on our two cars. I pay the Telmex,Sky and IUsacell bills online. I buy time for another IUsacell account. I make lots of SPEI transfers. I invest in Cetes, Fondos and Pagares. I wire our US purchased pesos into that bank (fee free). I would have a hard time living without that banking relationship.


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## makaloco (Mar 26, 2009)

It may depend on spending patterns, but I also find it useful to have an account with a Mexican bank, despite having no income here. It’s true that checks are rarely used, but my Bancomer Visa debit card is widely accepted by local businesses, including those whose machines won’t process foreign cards. There’s no fee for using it, and it’s much more convenient and secure than carrying large wads of cash (though it doubles as an ATM card when I do need cash). Another advantage is that it’s easily replaced. When my wallet was stolen a few years ago, all I had to do was call the bank’s 800 number to report the theft. They gave me a service code that enabled me to get a replacement card at my branch in about ten minutes. Getting my US bank card replaced was a huge hassle and took weeks.


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## Balboa (Nov 16, 2010)

It seems like Santander Bank and/or USAA are good banking options for someone retiring to Mexico. Question: What is the optimal (lowest fees / hassle) banking approach? For an example, will opening a banking account in the USA with Santander allow for fewer fees when taking out money at a Mexican Santander bank? (I know banks are cracking down to limit fraudulent activities). Any help would be greatly appreciated.


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## Isla Verde (Oct 19, 2011)

Balboa said:


> It seems like Santander Bank and/or USAA are good banking options for someone retiring to Mexico. Question: What is the optimal (lowest fees / hassle) banking approach? For an example, will opening a banking account in the USA with Santander allow for fewer fees when taking out money at a Mexican Santander bank? (I know banks are cracking down to limit fraudulent activities). Any help would be greatly appreciated.


I have been banking with Santander for several years. I pay no fees to withdraw money already in the account, in my case, it's mostly my US SS pension that is direct-deposited into it. If I want to withdraw money from my BOA account at a Santander ATM, there is now a 3% service charge.


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