# banking question of a different kind



## jimqui (May 16, 2007)

I am several months away from retiring to Mexico and I live in El Paso, TX, right on the border. Is there any way now to begin to move money into Mexico on days when the dollar is strongest? I will be selling my home here and eventually buying in the highlands. It seems less wise to move it all at once and hope the exchange rate is decent that day.

If I can restate my own question, can a US citizen, still living in the US, open up an account in a Mexican bank and transfer funds electronically? I understand that doing this might raise some red flags but still wondering if this is doable?

Much thanks ahead of time.:confused2:
JimQui


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## RVGRINGO (May 16, 2007)

You could watch the exchange rate on xe.com, or other such sites, but you might have to show an address in Mexico and your immigration document to open an account.
Actually, there really is no need to 'move money' at all. Most folks simply maintain their US banking relationships, have income deposited automatically and do all banking online. Mexican banks are famous for their fees, long lines and lack of anything like FDIC. We've lived in Mexico for over a decade, owned two houses and have never felt the need or desire for a Mexican bank account. We have maintained a small investment account solely for the purpose of having check cashing options or a place to wire funds, if needed. However, we use it so infrequently that it just sits there and we really should close it.


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## ronb172 (Mar 16, 2011)

My understanding on this that you need to have a temporay or permanent resident visa and an address in Mexico. Seems to me someone once mentioned a bank that didn't require an address, but I can't rely on my memory anymore..


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## joaquinx (Jul 3, 2010)

I had an FM3 when I opened an account in a Mexican bank. I believe that there are a few banks that will open an account with a tourist/FMM visa.

Transferring of funds will cost between 35 and 45 usd depending on the speed of the transfer. US banks will tell you that Mexico is slow to complete the transfer, but usually it will take one or two days. 

You seem to want to open an account and transfer money in order to buy a house. I would ask RVGRINGO to chime in and let us know how to buy a house in Mexico without having a Mexican bank account. 

I have a Mexican account and a debit card simply because I do not wish to carry around my US bank debit card. I feel that it is too risky. I only use it at the bank to withdraw funds for either deposit into my Mexican account or to have cash on hand. If my Mexican debit card is compromised in any way, they will only get a few thousand pesos and not access to my funds in the US.


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## RVGRINGO (May 16, 2007)

Upon the purchase of both houses, down payment and final payment at closing were all by personal check. The first purchase was in 2001 and the last one was in 2004. Payment method is something to be worked out between the buyer and the seller; the notarios don't involve themselves in handling that money and are paid by the buyer. So, the buyer and seller must exhibit mutual trust at the point of payment. I've never heard of any problems, perhaps because passing a bad check in Mexico will land you in jail immediately; that very day! You won't get out until everything is settled, plus some. No, there is no 'escrow system' that I know of.
I recently handled a closing for a friend in the USA, selling a lot in Mexico. He used a realtor and a Mexican bank. A funds transfer was arranged for the time of the closing but just after the papers were all signed, the bank called to say there would be a delay. That's where trust comes into play. The buyer signed a 'promissory note' and we closed. The bank probably made some interest on the funds and insured clearance, since they trust nobody, and delivered the funds a week later. I then gave the note back and all is well.
I know; many would panic at such a situation. What can I say? If the buyer and seller don't feel good about each other, run away? If you think the realtors have anyone's interest at heart, but their own, you are naive. Realtors have no regulation in Mexico and there is little recourse, if any at all. Don't expect a deposit back, if a closing fails.
My first purchase was without a realtor and went quickly and smoothly with a handshake, personal check and a notario to close in a matter of days. The second purchase was with realtors and there were errors, delays and omissions which made it a frustrating experience.


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## pappabee (Jun 22, 2010)

You might check with a US bank that has connections with a Mexican bank. BBVA I think is connect with Compass Bank, etc. One of them might be able to give you better information as far as any requirements made by Mexican banks.


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## TundraGreen (Jul 15, 2010)

pappabee said:


> You might check with a US bank that has connections with a Mexican bank. BBVA I think is connect with Compass Bank, etc. One of them might be able to give you better information as far as any requirements made by Mexican banks.


BBVA Bancomer (Mex) and BBVA Compass (USA) are indeed part of the BBVA Spanish banking conglomerate. But the connection doesn't do us any good here in Mexico. I opened an account at BBVA Compass a year ago. At that time I was told that BBVA would be integrating the two banks. This year, I visited BBVA Compass and was told that the banks are separate entities and moving money from Compass to Bancomer is no easier than moving money to any other bank.


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## RVGRINGO (May 16, 2007)

Anyone, who has lived in Mexico for a long time, will confirm that you will usually be told exactly what you want to hear. It may have little or no relationship to what will actually happen. If what you expected fails to happen, it will be blamed upon an employee and that employee may actually be fired to satisfy you that 'something is being done'. However, they sure won't take responsibility for the employee's alleged error.
Stick with a good US bank, do your banking online and have the 'protection' of the FDIC, for whatever that may still be worth.
You might also consider investing in comodities; especially rice and beans. Take delivery!


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## pappabee (Jun 22, 2010)

I wasn’t suggesting any one bank over another. I wasn’t even suggesting using a Mexican bank. I have both a US bank and a Mexican bank. I opened the Mexican bank for two reasons, one it’ll pay my utilities when due at no extra charge to me (one worry down the tubes) and the other is that I can transfer money from my US bank to my Mexican bank merely by writing a check drawn on the US bank. Works great and without any hassles. Anything to make my time less stressful. Of course the next time the US decides to go bankrupt stress might not be an option.


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## TundraGreen (Jul 15, 2010)

I like to have a Mexican bank account for all peso expenses, and a US account for all dollar expenses. I don't know how RV does it, but I get hit with a big fee, if I use a US credit card for peso purchases (like bus or plane tickets online, or local purchases in a store).

I think RV's suggestion of stockpiling rice and beans would be easier.


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## RVGRINGO (May 16, 2007)

Our simple solution: We only use a credit card for online purchases; never in person in Mexico. All shopping is done with cash obtained at ATMs. We haven't flown in years and are old enough to remember when it was actually something to look forward to on PanAm, JAL, Air France and BA. Now, we prefer to drive, or just stay home. Everywhere else is just like everywhere else, these days. You can minimize fees by having your bank increase your daily limit, then watch the exchange rate and pounce, when it is in your favor.


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## makaloco (Mar 26, 2009)

jimqui said:


> If I can restate my own question, can a US citizen, still living in the US, open up an account in a Mexican bank and transfer funds electronically? I understand that doing this might raise some red flags but still wondering if this is doable?


I'm not sure it's possible to open a bank account in Mexico without being physically present. On the website for my bank (Bancomer), applicants for new accounts are instructed to visit a branch. Photo ID and proof of residence are required, along with a minimum deposit (and immigration docs for foreigners). Once you had an account, you could wire transfer funds into it from the US, as Joaquinx described. That's what I did when I bought my house, although I sent the money all at once. The sellers (three siblings who owned the property jointly) wanted separate cashier's checks in pesos, which were easy to get at my Mexican bank and give to them at the closing.

For regular, ongoing access to funds, it works best for me personally to have a bank account in Mexico rather than using my US account. Keep in mind, though, that if your total in foreign bank accounts exceeds USD$10K even for one day, you need to file the FBAR report with the US Treasury (Form TDF 90-22.1).


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## sparks (Jun 17, 2007)

Banks having 'connections' have nothing to do with the original question ... since he has to be here to open a Mexican account. US banks aren't going to hold pesos

Might look at Banamex USA but I doubt you get beyond the US with them


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## La Osita (Oct 31, 2010)

While I was in Mexico this past winter I tried to have my name placed on an account (joint holding) and was told by the Banamex manager that I could not open and/or be placed on an account with only a tourist visa. I would need either the FM2 or FM3 in order to do that. 

Given my experience with the Mexican banking system, I have since decided and concur with many who have posted here that it is simpler and safer to maintain my finances in my US bank. 

So, I opened an account, while in the US, with Wells Fargo and use their 'Express Send' to direct funds in cash to a Bancomer office (I do not need to have an account there), where upon showing identification and giving them the transfer# I, or my beneficiary can pick up the money. Once the initial 'Express Send' is set up with Wells Fargo all transactions thereafter can be done online. I have transferred money quite a number of times with success. Funds are available immediately.

The upswing to all of this is that $1,500. a day can be transferred for a flat fee of $6.00 US with NO fees on the Bancomer end of the transaction. (There are a number of institutions that Wells Fargo will send the funds to). I sent $200.00 to my fiance a few days ago with an exchange rate of 12.2 and he received 2,440.996 pesos. All in all the best deal I have found yet. No need to have a Mexican Bank account and no need to use my credit/debit card or ATM while in Mexico. Hope this helps.

As to your question regarding the opening of a Mexican account while in the US, to the best of my knowledge, the answer to that is No. The paperwork needed to complete your application requires you to be in Mexico, with an address and your visa, passport and photo id. As well, your signatures are required in person. (I received this information from the manager at the Banamex office.)


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