# Financial info requested



## janinemc (Mar 2, 2014)

Hi All!

As a hopeful ex-pat, I am trying to research as much as possible about every aspect of life. One of the most important is financial. Do you have bank accounts in Mexico, or do you keep your accounts in the USA? Can you use debit cards from US financial institutions if they carry the VISA logo? Were you receiving Social Security in the US prior to moving, or did you sign up after relocating? Do you need a US bank account to receive Social Security? Any credit union members from the US? 

Janine


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## lagoloo (Apr 12, 2011)

Here's a few answers based on personal experience .

You can open a bank account while you are still physically in the U.S.; for one, BanamexUSA which is connected with Citibank and also Banamex, Mexico. You can have your SS checks automatically deposited in the US based bank. You can link that account with a Banamex Mexico branch by sending the necessary documents. That allows you to transfer funds to Mexico from the U.S. You can access those funds in Mexico with a Banamex debit card at ATM's without fees. Banamex USA will issue you a credit card which you can use for U.S. purchases. Many expats order goods from the U.S., using said credit card, and have them shipped through importers such as ESTAFETA, which arranges getting them through customs and having them delivered to your door in Mexico. They have a website and an English speaking rep available.

It is a good idea to get a U.S. mailing address through a Mexican postal stations such as Mail Boxes etc., which are set up to do forwarding to and from a central POBox unit in the states. 
This is good for getting important private mail like bank statements.
They usually pick up the mail in the states and bring it in several times a week to your local postal box in Mexico. 

Hope this helps somewhat.

I'd consult the Social Security website for answers on that matter.


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## chicois8 (Aug 8, 2009)

You might mention that BanamexUSA will only let you withdrawal $300 USD per day using their ATM card at a Banamex ATM .....also it is fee free........


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## Isla Verde (Oct 19, 2011)

I have my US Social Security checks direct-deposited to my Mexican bank account with Santander.


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## lagoloo (Apr 12, 2011)

Yes, Banamex ATM is fee free to account holders, unlike some others which are getting more pricey as time goes on. Also, you get a pretty good exchange rate on transfers.

If we need more than the ATM dispenses, we go to the branch to get money. I'm just as glad that there are daily limits, since the scam artists proliferate like bunnies. Or rats.


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## chicois8 (Aug 8, 2009)

Yes, Ratas con dos Patos.......


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## Isla Verde (Oct 19, 2011)

chicois8 said:


> Yes, Ratas con dos Patos.......


Rats with two ducks ....


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## chicois8 (Aug 8, 2009)

Sorry Isla, ment "Ratas con dos Patas"


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## Isla Verde (Oct 19, 2011)

chicois8 said:


> Sorry Isla, ment "Ratas con dos Patas"


Even better because this version rhymes! Who are these two-footed rats?


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## makaloco (Mar 26, 2009)

I have a US checking account and a Mexico one, with Bancomer. I lived here for about 2-1/2 years before I was eligible for Social Security, but it was easy enough to apply through the Foreign Benefits Office at the US Consulate in Guadalajara. My SS payments are direct-deposited to my Mexico checking account. For small amounts of additional cash, I occasionally use my US Visa debit card in a local ATM. For larger amounts, I write a US personal check for deposit to my Bancomer account.


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## janinemc (Mar 2, 2014)

Wow! Thanks for the info. I don't anticipate withdrawing more than $300 a day.  It is nice to know that you can sign up for Social Security even if you live in Mexico and that it can be directly deposited to an account there. I would wonder why you would still need an account in the US if that is the case. Thank you all for your answers. I so much want to make this a reality and I am looking for all the info I can get to help me do so.


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## makaloco (Mar 26, 2009)

janinemc said:


> I would wonder why you would still need an account in the US if that is the case.


In my case:
* Retirement savings company is required to withhold 30% federal tax on distributions sent outside the US.
* A couple of financial obligations in dollars (e.g., former employer's health plan premiums) are easier to pay from the US via the bank's automatic bill pay.
* Credit cards are linked to a US relative's address, though I manage them online.
* I've had the account since the '70s, so the bank "knows" me, even though I haven't lived in the US for 32 years. If I closed it, I'd have a hard time opening a new one with no US residence.

I could do without the US account if I had to, but keeping it is free and less of a hassle than trying to work out alternatives for all of the above.


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## janinemc (Mar 2, 2014)

Thanks. I was thinking as long as VISA debit cards work, it would be smart to just keep my credit union account.


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## sparks (Jun 17, 2007)

Getting a resident visa requires a certain income level and for many SS would be a major part of that income. I've heard some INM offices are requirng retirement income, not just money transfers or cash on hand.

A bank here and up north is flexible.


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## janinemc (Mar 2, 2014)

I'll double check on that. From what I had read a while back, it said proof of $2000 per month income or a flat amount in investments/property.


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## GCW (Mar 19, 2014)

I belong to a credit union in the states and have a Banamex account here. I get a good rate of exchange and my credit union does not charge for the transfers. Works great except for the thieves at Banamex. I've had my account ripped off twice, always right after a transfer. The first time they got my account information and went on a shopping spree in Mexico City. I was in the states at the time...passport as proof...but, it still took me months to be reimbursed. This time they used my account to automatically pay off their American Express account. Again I was in the states but Banamex refuses to help. They say American Express made the fund request and I have to sue them to get my money back. I am working with a government organization called CONDUSEF to try and resolve the situation. The attorney there says someone is targeting American accounts and Banamex knows it. He is handling several other cases of the same scam. American Express won't help because I am not a member and the accounts on the other end have been closed. I will probably switch to Scotia Bank soon as they seem easier to work with. In the mean time, as soon as I make the transfer, I take the cash out of my account and put it in a home safe. I love the Cancun area and this is my only complaint, now that I finally have my Residente Permanente. As for the Banks...be careful.


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## AlanMexicali (Jun 1, 2011)

GCW said:


> I belong to a credit union in the states and have a Banamex account here. I get a good rate of exchange and my credit union does not charge for the transfers. Works great except for the thieves at Banamex. I've had my account ripped off twice, always right after a transfer. The first time they got my account information and went on a shopping spree in Mexico City. I was in the states at the time...passport as proof...but, it still took me months to be reimbursed. This time they used my account to automatically pay off their American Express account. Again I was in the states but Banamex refuses to help. They say American Express made the fund request and I have to sue them to get my money back. I am working with a government organization called CONDUSEF to try and resolve the situation. The attorney there says someone is targeting American accounts and Banamex knows it. He is handling several other cases of the same scam. American Express won't help because I am not a member and the accounts on the other end have been closed. I will probably switch to Scotia Bank soon as they seem easier to work with. In the mean time, as soon as I make the transfer, I take the cash out of my account and put it in a home safe. I love the Cancun area and this is my only complaint, now that I finally have my Residente Permanente. As for the Banks...be careful.


I have 2 accounts at my US bank and 1 account has a few dollars in it, the other more. When I need to use a Banamex ATM [cheapest fee and everywhere ] here I transfer the money I will be taking out here to my 1 account with little money from the other online [instant transfer of money]. Then withdraw it and only a little is left if my card is jeopardized. I have been doing this for over a decade and never have had a problem. I don´t have automatic overdraft on my 2 accounts which is a good idea.

I assumed every Expat who uses ATMs in Mexico, or living abroad somewhere, did the same thing just to be worry free.

When transfering mioney in larger amounts I use my Actinver account here and not my Bancomer account and dribble the money from there. I have never had a problem. The only inconvenience is I have to stop at Actinver to withdraw cash.


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## janinemc (Mar 2, 2014)

I worked in both a bank and a credit union and I am don't have a "bank" account anymore-though I will need one there. No overdraft protection is a great idea as is not keeping much in the account. Good info! Thank you!


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## Longford (May 25, 2012)

I've had accounts in Mexico with Banamex, and now that I'm in the USA I have a principal account at Citibank, and use, almost exclusively, Banamex ATM machines throughout Mexico as I visit/travel. I haven't used the Citi or Banamex funds transfer (USA to Mexico) in decades so I can't speak from the standpoint of recent experience. I probably wouldn't be transfering funds into Mexico unless I was purchasing real estate. This is the first I've heard that accounts of persons from the USA are being targeted for theft by Banamex and/or American Express. Without having some better information, I'll continue to be skeptical of such claims (most probably because I've not been victimized ).


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## lagoloo (Apr 12, 2011)

I have a Citibank account linked with a Banamex account in Mexico for purposes of getting cash from the ATM's with no fees. I keep very little money in the Mexican bank account because I, too, have been victimized by their employees years ago and don't want to repeat the experience. They stonewalled me and I never recovered the money. No details would be useful. I''ve had this account for over ten years.
My SS check is deposited in the US account as are any major funds. It's about trust, and insurance.

Originally, it was possible to electronically transfer funds from the Citibank account to the Banamex Mexico account. It was convenient and easy. In the last months, it is no longer possible, and definitely not easy. Excuses are given that this is temporary, but the reality is that now, to transfer funds, I must call their 800 number, wait while scratchy musak is piped over the lines, and eventually get ahold of a representative whose Spanish accent is so strong that my impaired hearing is almost at a total loss to understand and, after stating my request for funds transfer, it does not happen until an hour or so later when someone calls me back on my home number and proceeds to read me a paragraph of regulations.
After that, they insist on sending me the confirmation number for the transaction by SNAIL MAIL to my Mexico address.
If I were in the States and could open a bank account with a more cooperative bank, I would. However, for all I know, they all implementing this new system. They also allege it''s due to new Federal regulations. AAAARGH!


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## RVGRINGO (May 16, 2007)

I strongly suggest that you keep, or obtain, an account with a major US bank. We have lived in Mexico since 2001 and do not use Mexican banks for a number of good reasons. Banking online is easy and free, with no waiting in long lines. There are banks, like ours (since 1959) which refund ATM fees and only charge the 1% foreign transaction fee imposed by the credit/debit card company. Mexican banks are not terribly trustworthy for many of their services, have multiple fees and are often staffed by people who are unable to assist you in any language.
Keep life simple: Use a US mailing service and a US bank.


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## Hound Dog (Jan 18, 2009)

You have many choices of Banks with which to do business when you move down here. Some pointers:
* To each his own but we have our social security benefits electronically deposited in our U.S. account at Charles Schwab and access the funds as we wish up to the daily equivalent of $1,000USD at ATMs not only in Mexico but just about any place on earth and that is important since we often visit my wife´s home country of France where we depend on getting our daily Euros from ATMs anywhere in that country free of charge. The Schwab accounts are completetly service charge free including any charges for wiring funds. Schwab also instantly credits back all ATM charges imposed by any bank anywhere. You don´t need a U.S. address with Schwab as all banking iis handled on line including banking statements of any kind and all important IRS documents needed to submit to the IRS with your tax returns. I might add that by depositing your social security benefits ina U.S. rather that a bank down here, your funds on deposit are fully guaranteed by the FDIC and you avoid the serious sovereign and currency Exchange risks you would incur by depositing your money directly into a Mexican (or any other foreign) bank.
* We have two service charge free bank accounts in Mexico at Banamex and Bancomer - both of which are nationwide Banks with branches all over Mexico. Our minimum balance at Bancomer in order to avoid all service charges is $2,000MXN (about $152USD today) . At Banamex, which is a more complex account, we have a minimium balance requirement of $20,000 MXN (about $1,520 USD today) but that latter account was our choice and these mínimum balance requirements are no imposition on us since we would be keeping that amount of money in these Banks anyway for practical reasons.
* There are several advantages to having bank accounts in Mexico as well as your home country. All of our utility bills are paid monthly by Bancomer free of charge so we never have to head down CFE or the phone company or any other utility including satellite televisión companies. Sincé we live in two towns in Mexico diistant from one another, we are also able to pay interbank transfers from either Bancomer or Bananex to cover costs we incur from afar to pay for domestic help and home management charges and these interbank transfers (for our distant property managers, for instant) can be affected from the comfort of our home computer.
* We find that it is important that we maintain a U.S. account because, when we need more money that the $1,000USD equivalent allowed at ATM machines and don´t want to bother with wiring funds even if the wire transfer is free, we can write checks against our U.S. bank account at certain currency exchange and/or investment houses at Lake Chapala up to $3,000USD a day. This reminds me of another important advantage to maintaining bank accounts in both the U.S. and Mexico and that is that, since we bank with a large international brókerage house (with the full range of commercial bank services through Schwab One or the Schwab Bank) at Schwab, when we decide to wire a large sum of money to Mexico to buy a new car or even a new home with the purchase Price in pesos, for instance, we can piggyback our currency exchange transaction onto Schwab´s daily mega-exchange transaction, have the pesos wired directly to one of our Mexican Banks at Schwab´s preferred exchange rate and also avoid hidden fees charged by correspondent banks charged with the responsibility of the currency exchange in Mexico at unfavorable rates.

Now, once again, to each his own but when we arrived in Mexico in 2001, the peso was being dubbed "The Mighty Peso" as the currency exchange rate to the dollar was a solid 8.9/1 and in recent years that Exchange rate has hovered around 12.0+/1. From day one down here we have avoided investing in peso denominated investment funds of any quality despite that, from the time we got here at the turn of the century to today, the melded rate on any of our investments (almost all IRAs) has delined from the then 7.0% rate to less than 0.1% overall and that decisión was made to avoid sovereign and exchange rate risk which, if you think in terms of the substantial decline since then of the peso to the dollar and even discounting sovereign risk, any peso denominated long term investments we may have made back in 2001 which might have continued to yield up tp 12% in pesos, would have been the equivalent of spitting in the wind.

So, my advice, in other words, is establish a good banking relationship with a bank in the U.S. large and sophisticated enough to warrant your establishing an international client relationship and with the full range of computerized international banking services and, when you get here, set up an account (preferably a savings accout as checking accounts are of marginal value here in Mexico) with one of the major nationwide banks offering service charge free services and you´ll be off to a good start. Both here and in the U.S., avoid banking with "Ole Billy Bob Bank and Trust Company" in Hooterville no matter how fondly you remember Billy Bob who has been your banker since 1957.


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## Hound Dog (Jan 18, 2009)

I]


RVGRINGO said:


> I strongly suggest that you keep, or obtain, an account with a major US bank. We have lived in Mexico since 2001 and do not use Mexican banks for a number of good reasons. Banking online is easy and free, with no waiting in long lines. There are banks, like ours (since 1959) which refund ATM fees and only charge the 1% foreign transaction fee imposed by the credit/debit card company. Mexican banks are not terribly trustworthy for many of their services, have multiple fees and are often staffed by people who are unable to assist you in any language.
> Keep life simple: Use a US mailing service and a US bank.


[/I]

Just for the record, we, as RV, have been here since 2001, maintain, as stated in my above comment, accounts at a large U.S. financial institution with whom we are entirely satisfied and, since the early 2000s have maintained accounts at two Mexican Banks that are completely service charge free and where we have received impeccable service for over a decade. I agree with RV that one should maintain a U.S. bank and preferably a "major" U.S. bank as have we *before *moving down here - that last point being very important since setting up a U.S. bank account once one has moved to a foreign country can entail certain difficulties. 

To each his own but I say - after 13 years of experience - that a U.S. address in these days when snail mail is slowly crawling into the history books and all communication services are easily handled electronically on one´s home computer, a U.S. address is about as useful as gonads on a monk. 

By the way, in some ten years plus of dealing with Mexican banks primarily over the internet and at ATMs, I don´t think I have stood in a bank line for more than an hour in aggregate in all that time and the service we have received from both Bancomer and Banamex both in Chapala and in San Cristóbal de Las Casas has been flawless and they pay all my utility bills free of charge so well and faithfully every month without fail that I don´t even remember how to get the the CFE office at either Lake Chapala or in Chiapas.


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## janinemc (Mar 2, 2014)

Wow! Your guys are a wealth of knowledge! Muchas gracias!


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## GCW (Mar 19, 2014)

Stay with a credit union if you can. I will most likely continue to make elecronic transfers to a Mexican account (not Banamex) simply because it pays to make the spread. The spread is the difference from whaI I get on the intenational exchange and what the banks give you with an ATM withdrawl. I can get asmuch as 1.12 more with an EE while an ATM withdrawl gives you the rate shown at the window. No wonder the banks say no commission when they can make 1120 pesos off a $1000 transfer. Took awaile for my credit union rep to get it set up but it paid off and it has worked well for eight years.


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## janinemc (Mar 2, 2014)

Credit Unions Rock!


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