BajaNomad - Do I need a peso AND dollar account in Mexico?

Do I need a peso AND dollar account in Mexico?

oladulce - 9-28-2009 at 11:17 AM

I know, i know- it's me with another question
:rolleyes:

They're bound to taper off (a little) once we are moved and settled in, I promise.

It looks like a Citibank US account/ and a Banamex Mex. account will work the best for online transferring of funds for construction etc. There's a Banamex in Constitución (my nearest big city), there's no fee to perform online transfers between accounts at these 2 banks, and they allow larger sums to be transferred (other banks limit transfer to $1000-2000 dollars at a time).

I'll open a peso checking account at Banamex so we can pay the contractor for building materials, write paychecks for the 2 masons, and for ATM withdrawals for living expenses. (We decided not to pay the workers social security ourselves and will let the contractor handle it). I don't plan to keep large sums sitting in the peso account.

Is there a reason to have a Mexican bank (Banamex)dollar account also?

Cypress - 9-28-2009 at 11:54 AM

Only if you want another level of red tape to deal with. :?:

k-rico - 9-28-2009 at 12:06 PM

FYI

[Edited on 9-28-2009 by k-rico]

CP - 9-28-2009 at 12:59 PM

We got a dollar account and peso account at Banamex when we moved here five years ago. It was explained to me at that time that we could only wire dollars to a dollars account. I prefer to spend pesos so I just transfer my wired dollars into the peso account. But if you can actually on-line transfer dollars into a peso account (or dollars into pesos in the US then peso to peso down here), then I don't know why you would need a dollars account.
Yes, we had to sign a IRS form to declare for the interest earned on the Dollars account. Since we don't leave the dollars in there for long we accumulate less interest than the minimum we would need to declare.

oldjack - 9-28-2009 at 02:07 PM

I must have miss-read... a few posts back on this subject I thought the conclusion was that Bank of America offerred the most versatility... and the dollar account would remain in the U.S.A. ????

My personal requirements(while living in MX) are:
a. to have my retirement checks deposited directly
b. to have my social security checks deposited directly
c. to have ATM access to pesos

Is there one "best answer" to this situation???????

oladulce - 9-28-2009 at 02:11 PM

Thanks CP and Kate.

I didn't realize you could get dollars from a dollar account (duh). I was imagining it being stored in dollars but withdrawn in pesos. I think we'd use the peso account more often for everyday use, but can see how it would be beneficial to be able to access dollars, especially prior to a trip north.

Do you have to go in to the bank to retrieve dollars or can you withdraw dollars from a dollar account at ATM's?

oladulce - 9-28-2009 at 02:35 PM

oldjack-

I think alot has to do with where you'll be living and what banks you'll be withdrawing the pesos from so you can avoid or minimize the fees.

There isn't a Santander or Scotia bank in Constitución where we will be accessing 99% of our pesos at ATMs so our current B of A accounts wouldn't be useful.

But for us, the big benefit to the Citibank/Banamex relationship is they consider themselves one and the same according to the account reps at Citi and they allow you to perform online "wire transfers" between your accounts.

So I can be out in the boonies in Baja and "wire" money from our US account to our Mexican account. I found no other bank that offered this service without having to fax a request, and without paying any wire transfer fees.

longlegsinlapaz - 9-28-2009 at 03:40 PM

Oladulce, never, Never, NEVER take USD from an Mexican ATM....even out of a US bank account....I did it ONCE....the fees they charge will send you into cardiac arrest!! :no:

akbear - 9-28-2009 at 03:44 PM

oladulce,

I have CITI/Banamex accounts & do Globle Transfers between CITI dollar to Banamex Peso accounts. I also have a Banamex dollar account for trips North & Gringo buys. I do it on line but most times I also have to call CITI online banking to verify who I am. Once in a while it takes some time to get it across what you are doing. I think that there is a $1,000.00 limit a day. You need to check with the bank to see which type of transfer has what limit.

You now have to let the IRS know if you have more than $10,000 in all overseas accounts combined.

longlegsinlapaz - 9-28-2009 at 04:11 PM

Quote:

Originally posted by oldjack
I must have miss-read... a few posts back on this subject I thought the conclusion was that Bank of America offerred the most versatility... and the dollar account would remain in the U.S.A. ????

My personal requirements(while living in MX) are:
a. to have my retirement checks deposited directly
b. to have my social security checks deposited directly
c. to have ATM access to pesos

Is there one "best answer" to this situation???????

oldjack,

(a) I believe that retirement benefits are at the whim of the company issuing the checks as to whether or not they will make deposits/transfer funds to a bank outside the USA....mine wouldn't, so those funds continue to go into my USA bank & I can ATM them out in pesos down here.

(b) SS WILL deposit directly into your Mexican bank....either to a USD account or a peso account. Or at least they SAY they will

....a friend is due to start receiving funds in her local USD account the first week in Oct....and I'm due to start receiving funds in my peso account the first week in Nov. So I guess we'll find out! :lol:

We both live here full time & discovered that US citizens can apply for SS through the US Consulate in Guadalajara. They have a SS group who does a phone interview for information & then you have to mail/DHL some original documents (passport, original birth certificate, some recent years US tax returns) they make copies & return them all to you via DHL. They will NOT accept copies, they want to see the original documents. It was great not having to go to the states to apply for SS.

(c) It's best to ONLY withdraw pesos out of ATMs here regardless of whether the account you're withdrawing is from is a US bank or a Mexican USD or peso account.

I don't have an "affiliate" bank, so can't answer your one-bank question. With the recent upheaval in US banking system & what bank took over which other banks recently, I think who allows what is likely to be a rapidly moving target for the foreseeable future.

Bajahowodd - 9-28-2009 at 04:13 PM

The folks in Europe solved this problem. with the exception of a few holdouts, everyone uses the same currency.

longlegsinlapaz - 9-28-2009 at 04:14 PM

Quote:

Originally posted by Bajahowodd
The folks in Europe solved this problem. with the exception of a few holdouts, everyone uses the same currency.

We ain't in Europe, Toto! :lol:

oladulce - 9-28-2009 at 04:29 PM

Quote:

Originally posted by akbear
oladulce,

I have CITI/Banamex accounts & do Globle Transfers between CITI dollar to Banamex Peso accounts. I also have a Banamex dollar account for trips North & Gringo buys. I do it on line but most times I also have to call CITI online banking to verify who I am. Once in a while it takes some time to get it across what you are doing. I think that there is a $1,000.00 limit a day. You need to check with the bank to see which type of transfer has what limit.

Good to know akbear. I've called Citi twice so far to confirm the info because it sounded too good to be true. Both times the agents confirmed that I could transfer $10,000-15,000 dollars at a time online, from Citi to Banamex without fees.

The Citi website shows daily limits of $1000-2000 for "transfers" of funds from a Citi account to an "account you own at another institution" and Online "wire transfers" allow you to send larger sums of money but they have fees of $20-30 per transaction.

When I mentioned that the funds would be going to a Banamex account they responded "Banamex is Citibank and the daily limits and fees don't apply".

I'll call again and see if I get different information. It's sounds like there may be some snafus (such as the fact that there's rarely cell reception during daylight hours to be able to call Citi from our spot). But overall, i think this bank combo will be the best option.

Someday when we're finished building we won't need the ability to transfer larger sums.

akbear, to get dollars from your Banamex dollar account do you go in to the branch?

Bank accounts

Loretana - 9-28-2009 at 04:44 PM

Oladulce,

We have both a dollar and peso account at Bancomer in Loreto.

Our builder prefers to pay in pesos, using a checking account.

I transfer funds in dollars from our US bank to the dollar account, and move it over as needed. I have see two major peso devaluations (not that the dollar is all that hot right now) during my years in Mexico, and I feel more comfortable keeping the bulk of our building funds in the dollar account.

You can get dollars out of the bank, but you need to go to the branch to do it.

Generally, I use my peso account debit card for general purchases like gas and hardware store stuff, and use the dollar account debit card to get pesos out of the ATM for my fruit market, grocery store and other cash needs.

Don't worry, it gets easier as you go along. :dudette:

Bajame - 9-28-2009 at 07:54 PM

Tried to change dollars for pesos in Visciano and they would not do it. Will try in Santa Rosalia tomorrow. Has anybody else had a problem?

garynmx - 9-29-2009 at 04:24 AM

Hate the Mexican Bank ATM card. Your name is not on it and if lost or stolen ANYONE can use it and you will not be reimbursed. I keep my Mexican Bank Card locked in my house and never use it. I have the account for emergency only. I use my BofA card at Scotia and Santander ATM's and no fees are charged as those 2 banks are afflicated with BofA.

Bob and Susan - 9-29-2009 at 05:28 AM

better check a couple of things

deposits of 25,000 pesos or more per month get taxed

i don't think bank transfers do...but still check
new law to curb money laundering

we have citibank in the usa
and had a banamex account here
EVERY transfer got a fee
bank told us the same...no fees

they don't know

now maybe your banamex account
should be with with banamex usa
the one in LA
then they will have to deal with written rules
and follow the REAL rule

shari - 9-29-2009 at 06:55 AM

bajame....the bank in Vizcaino (and other places i believe) stopped exchanging dollars for pesos a long time ago....several months at least...you have to deposit the dollars into an account...then withdrawl the pesos.

I was also told at my bank (Bancomer)that the tax on deposits over 20,000 pesos in a month is only for cash deposits and doesnt apply to transfers electronically.