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Hook
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Quote: Originally posted by weebray  | | My 5 cents. Stay away from Mexican banks like the plague. Schawb is my preference. 8000 pesos + at ATM every day suits us. If you give up
your US ties you may not be able to get a US account. Banking laws are getting tighter cada dia. |
This is so true. When I sold my only US property and bought in Mexico in 2008 and began using a PO Box as my address, I was planning on putting the
proceeds of the sale into some of the higher earning MM accounts like maybe Zions Bank or IndyBank, etc. But, since the passage of the Patriot Act
after 9/11, the US financial institutions were forced to only open new accounts with legitimate, physical US addresses. We couldn't open new accounts
with any US institution. I could only use institutions that I still had dealings with like my credit union, Vanguard and B of A (for the free ATM use,
at the time, with Santander and others).
I would also never put any large amount of money into a Mexican bank. I know more than a few that got screwed in the last major devaluation of the
peso. Yep, they supposedly had dollar accounts in Mexican banks. That didnt help them, nor did this supposed equivalent of FDIC that JJJ TALKS about.
But, then, he TALKS about a lot of things..................
I'm fine with 8k pesos every so often.
But that wasnt enough, when I was building out my lot. Fortunately, many of the builders over here keep US bank accounts, so we could write him checks
from our US institution. I thanked him for this convenience once and he said that many of the builders keep most of their money in US banks. They dont
trust the Mexican banking system, either. The accounts were typically opened in the name of a relative who had emigrated to the US.
Ya see, Joe, these are the kinds of things you learn while actually BEING in Mexico, instead of reading articles about it, written by others who never
actually go to Mexico, either.
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AKgringo
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My dad was one of those who lost a lot of money during the peso crash in the late 80's. He was happy for a while with the interest rate he was
getting, until the principle started withering away!
He is not around anymore to ask if it was a dollar, or peso account, but he was not able to stop the bleeding until he had lost 80 or 90 percent of
his investment.
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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Cancamo
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No problem with peso and dollar accounts at Banorte, (previously Bancrecer), over almost 20 years. Pretty sure the devaluation was limited to peso
accounts. True, those that have the means, (contacts and funds), maintain stateside bank accounts. I think this is much as hiding income as much as
anything.
Travelwise.com for debit or wire transfers, online, safe, and cheap. Schwab for ATM.
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JoeJustJoe
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JJJ answers Hook:
Hook wrote: This is so true. When I sold my only US property and bought in Mexico in 2008 and began using a PO Box as my address, I was planning on
putting the proceeds of the sale into some of the higher earning MM accounts like maybe Zions Bank or IndyBank, etc. But, since the passage of the
Patriot Act after 9/11, the US financial institutions were forced to only open new accounts with legitimate, physical US addresses. We couldn't open
new accounts with any US institution. I could only use institutions that I still had dealings with like my credit union, Vanguard and B of A (for the
free ATM use, at the time, with Santander and others).
_______________
JJJ wrote:
The fact you don't have a physical US Address, and couldn't open a new account is not the fault of the Mexican banking system.
I would also never put any large amount of money into a Mexican bank. I know more than a few that got screwed in the last major devaluation of the
peso. Yep, they supposedly had dollar accounts in Mexican banks. That didnt help them, nor did this supposed equivalent of FDIC that JJJ TALKS about.
_____________________
JJJ wrote: I would not put a large amount of money in a Mexican bank, either, but only because most banks US or Mexico, give low returns, and
you have the currency risk in Mexico.
The key word here is "supposedly" had dollar account in Mexican banks. So what did the Mexican banks promise to take all the currency risk? I
would have to see the agreement. The FDIC, or the Mexican equivalent, would not protect them from currency risks.
I'm fine with 8k pesos every so often.
JJJ wrote: I would be happy with 8 K in the bank too. I bet the majority of ex-pat living in Baja, are living on a fix income, and so I want
to hear about problem with Mexican banks with people with relativity small account. I don't want to hear about the crash in 1994, or 1988, or 2008 in
the USA, and the soon to be crash of 2018-2019 in the US.( damn market down again because of Trump)
But that wasnt enough, when I was building out my lot. Fortunately, many of the builders over here keep US bank accounts, so we could write him checks
from our US institution. I thanked him for this convenience once and he said that many of the builders keep most of their money in US banks. They dont
trust the Mexican banking system, either. The accounts were typically opened in the name of a relative who had emigrated to the US.
JJJ wrote: Again Hook your problems have nothing to do with the Mexican banking system, and there are banks in the US and Mexico, you could
exchange your money freely between the accounts, and there are wire services, brokerage services, etc etc...
So the Mexican builders don't trust the Mexican banking system, but instead trust their relatives in the US with their money? I bet most
people here wouldn't trust their family members with a substantial amount of money.And what happens when the banks sees those large checks or
transactions for over $10,000. What's the family member going to say? Oh this money is not really my money, it belongs to my Mexican cousin in
construction.
Ya see, Joe, these are the kinds of things you learn while actually BEING in Mexico, instead of reading articles about it, written by others who never
actually go to Mexico, either.
JJJ wrote: Yeah right, Hook, whatever you say.
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Hook
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So, how's that Mexican FDIC research coming? That was really the only issue I had with your previous posts. Lost money is lost money. How'd ya like to
have three zeros chopped off your savings account, with no recourse? It happened. In Mexico. Most of us can remember it.
The rest of my post was directed at Bob, and his contention that if you live full time in Mexico, why have a US account.? So, I gave reasons why, from
a practical, living in Mexico, standpoint.
Maybe you can't trust your relatives but many people can.
The rest of your post is just trying to extricate your foot from your mouth. No one bothers trying to correct it all, anymore. You never learn,
anyway.
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JoeJustJoe
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| Quote: Originally posted by Hook | So, how's that Mexican FDIC research coming? That was really the only issue I had with your previous posts. Lost money is lost money. How'd ya like to
have three zeros chopped off your savings account, with no recourse? It happened. In Mexico. Most of us can remember it.
The rest of my post was directed at Bob, and his contention that if you live full time in Mexico, why have a US account.? So, I gave reasons why, from
a practical, living in Mexico, standpoint.
Maybe you can't trust your relatives but many people can.
The rest of your post is just trying to extricate your foot from your mouth. No one bothers trying to correct it all, anymore. You never learn,
anyway. |
Mexican banks, FDIC insurance is called IPAB( Instituto para la Protección al Ahorro Bancario) and the IPAB guarantees you bank savings up 400
thousand UDIs and that the equivalent to 2,481,559 pesos.
That's a lot of money, but like FDIC insurance, don't keep more than that amount of any one bank, if you want the insurance, and it's not each
separate account, but a combination of accounts you have insured at that one bank.
The IPAB like the FDIC, doesn't protect you against bad investments at the bank, or currency risks. However, since the peso is 20 to 1 dollars, and
oil is trading around 50 dollars a barrel. I don't' see the exchange rate getting much worse. If it does get worse, and you get burned, it's your
fault, for not spreading the risks among different accounts.
THE IPAB, will only protect you if the bank goes belly up, insolvent, and things of that nature. If the bank gets robbed, you won't lose or money. If
a Mexican scams you outside at the ATM, it's not the banks fault, it's your fault, for giving your ATM to a scam artist.
This is not 1994, and the Tequila Mexican bank crisis, where all the banks of Mexico, was owned by the Mexican government before 1992 and Mexico,
just went the privatizing route, to be like the USA, and failed miserly, because they had lax oversight, and really didn't know what they were doing
under a new banking system.
In 2008 when some banks in the US were crashing, Mexican banks, did better, because they implanted "Basel III" global voluntarily regulatory standards
on bank capital.
Now back to the Mexican construction workers, who doesn't trust Mexican banks, for some unknown reasons. They have to be some of the dumbest people
alive, to trust their family members back in the USA, especially with banking laws against money laundering, that will draw suspicion from the banks,
if a large of amount of money is being exchanged.
Now most people love their family dearly, but money is money. What about the spouses, and if the family in the US, should get a divorce, and the other
spouse goes after that money in the bank account?
You have to be a real idiot, to put your money under your mattress or give to a family member in the USA, than a bank, even a Mexican bank, where
your money will be well protected at least until the next major financial crisis, that happens every 20 years or so. A family divorce happens all the
time.
On top of all this, most major banks in Mexico, is foreign owned. The banks own the world, and they take care of each other. They spread the risks,
rewards, and misery.
[Edited on 12-18-2018 by JoeJustJoe]
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Alm
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| Quote: Originally posted by healthdetective | How does one handle their banking if they live in Baja full time?
This makes an assumption that many still keep an account in the US or Canada.
Specifically how do you get your updated atm/debit cards?
Do you tell the bank you are now living outside the country etc?.
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Depends on what needs you need to handle and what location. The biggest pain with using US/Can account is paying Mex electrical bill
online. Other issues can be remedied.
Getting updated cards - again, depends on location. Keeping private mail box near the border and traveling there from time to time is the most
reliable way. US/Can bank will send it anywhere but this doesn't mean you'll receive it in some obscure village.
Yes, you must notify Can/Us bank that you are traveling. Easy to do on most bank websites. Otherwise they could freeze your account, for suspicions
that somebody has stolen your card in Mexico.
It doesn't sound like you are considering getting Mex bank account, but if you do, there are few things to be aware of. You need RT/RP status. People
sometimes live in Baja with FMM only. Occasionally Mex bank would open an account to FMM holder, but normally they don't. And, if you do open Mex
account, don't hold your breath - there are fewer perks than in the US/Can accounts, checking account fees with zero balance are rarely waved and
credit cards have very low limits.
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MrBillM
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What Joe don't KNOW
Does not include Scheisse !
In THAT, he is well-versed.
And spreads prodigiously .
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Alm
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What does "most" of this thread to do with the OP question...
Though, I have to say that post #1 was begged to be hijacked. OP never specified whether it's US or Can account - Canadian market is very different,
fewer choices. Neither they specified where in "Baja" they live, what services they are looking for and what their status is. Couple this with (usual)
unfocused state of forum members and you have inevitable yet predicable result 
Btw, there are ways around "giving up US (or Can) ties" and keeping your NOB account. NOB bank requires NOB mail address on file , not your
year-round physical presence.
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MrBillM
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Mexicans, Banks and Taxes ?
While cash (in dollars) was always preferred, during the 32+ years that I "resided" in Baja, I also wrote more than a few checks for hundreds (and
sometimes thousands) which were cashed through various businesses or by people that I'd never heard of. NONE that I remember were deposited by the
campo in a Mex bank. More than a few times, I was asked to actually make out the check to a different person. I never asked WHY.
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Alm
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| Quote: Originally posted by MrBillM | | ... I also wrote more than a few checks for hundreds (and sometimes thousands) which were cashed through various businesses or by people that I'd
never heard of. NONE that I remember were deposited by the campo in a Mex bank. More than a few times, I was asked to actually make out the check
to a different person. I never asked WHY. |
Tax evasion is a national sport in Mexico. Nothing new, and has little to do with the thread.
Roger and out.
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