BajaNomad - Handling money in Baja

Handling money in Baja

Tano - 10-21-2009 at 08:45 AM

What is the best general strategy for a retired US citizen, who has a bank account in the US (B of A), to handle money in Northern Baja for common expenses?

noproblemo2 - 10-21-2009 at 08:50 AM

Quote:

Originally posted by Tano
What is the best general strategy for a retired US citizen, who has a bank account in the US (B of A), to handle money in Northern Baja for common expenses?

Depending on the amount you need, we just use our ATM card at any machine. If you have a balance of (X) amount of dollars the transaction fee is waived.

bajaguy - 10-21-2009 at 08:51 AM

Get an account with a US bank that has a "partner" bank in Baja........then use bank ATM to withdraw pesos.

The following message is from Juan Gomez, Executive, Preferred Customer Unit of Bancomer in Ensenada:

I want to inform you that if you're visiting or living in Mexico, you can now do much better for yourself when it comes to banking.
BBVA Bancomer, Mexico's number one bank, has created the Preferred Customers' Unit to cater to people just like you, offering the professional advice and solutions to all of your financial and banking needs, as well as the fideicomiso (trust) structure required to purchase real estate in Mexico.

I am part of the team of bilingual banking executives specially trained to tend to your every banking need. I very much look forward to meeting you at our offices located at Wal Mart Shopping Center Ph # 173-39-75 and 178-10-13 to discuss how we can help you do better for yourself.
Please visit our website: www.bancomer.com/pcu
* You can open dollars or pesos account and avoid ATMS fees
* We accept any checks from US to open your account or deposit
* Your electric bill can be charge automatically to your account
* Free banking on line to pay third partie
* Your passport or ID of California and any utility bill is all you need to open your account pesos or dollar
feel free to contact me at 173-39-75 and 178-10-10 email: juan.gomez@bbva.bancomer.com
Thanks to all for your support
www.bancomer.com/pcu

Iflyfish - 10-21-2009 at 09:05 AM

I have always used my US accounts to draw upon in Mexico, using bank machines. My experience is that one gets the current exchange rates and it is safer. Mexico has had a history of taking over the banks and changing the value of funds deposited by converting them to pesos. Basically I don't trust Mexican banks the same way that I trust US banks. If one is earning Pesos then the point is mute. If your income is from dollars then I would only deposit in a bank whose primiary currency is dollars.

I am interested in the views of others on this point, changes may have happened that might modify my perspective.

Iflyfish

Tano - 10-21-2009 at 09:21 AM

Interestingly enough, there is an BBVA Bancomer branch in my neighborhood (L.A.). Anybody has experience with them?

bajaguy - 10-21-2009 at 09:30 AM

Most of the comments I have observed on the Punta Banda board were very positive regarding Bancomer and Mr Gomez

tjBill - 10-21-2009 at 09:43 AM

If your account is with B of A (Bank of America) use the ATMs at their partner bank, Santander Serfin,; no $8 atm fee.

MitchMan - 10-21-2009 at 03:35 PM

BajaGuy, While you are touting Bancomer, please be forthcoming about some other considerations such as, if you want to buy Pesos with US dollars in your hand from Bancomer, even though you have an account with Bancomer, you have to first deposit your US cash into your Bancomer account and then issue yourself a check made payable to "Portador" and cash it to get your pesos. Also, if you don't have any activity in your Bancomer account for three months, Bancomer will de-activate your account and will not allow any transactions through the account (except for monthly banking fee debits). You have to talk to the bank manager at the branch at which you opened the account to ask them to re-activate the account. ALSO, if you typically make checks for small dollar amounts such as $50 USD to $200 USD for a several month period and then you make a check for $1,200 USD or more, Bancomer will deny payment on the check because, in their infinite wisdom, the $1,200 or larger amount is "out of the ordinary" and is therefore automatically suspect and will not be allowed to clear. ALSO, in order to open a USD Bancomer checking account, you have to keep $500 minimum balance at all times. ALSO, if you want to know your current bank balance in your account or want a print out of recent activity on your account while you are at the branch, you must talk to the bank manager as the tellers do not have the visibility nor the authority to give you a balance nor a print out. If you want your balance or a print out of the activity, but you are not at the specific branch you opened your account at, the manager of that branch may not give tell you your balance nor print out the activity. This is certainly true if you are in a different city than in the city where you opened your account. All my Mexican friends tell me having a checking account is generally not worth the trouble or the expense, and as such, none of them have accounts. Also, I have notived that most all independent contractors do not keep accounts for the above reasons. By the way, the above applies to Pesos accounts as well. I did all the research verified what my friends told me and decided not to open a Mexican account in any Mexican bank.

The absolute best way to manage cash in Mexico is to do your banking online with your American bank and related accounts and withdraw cash from certain Mexican bank ATM's that have the arrangement with your American bank wherein you are not charged a fee (as mentioned in a previous post). The additional benefit is that the exchange rate that you will suffer will be the best rate available. Also, this method is best for security in that you will not have to carry much currency with you, just the amount you need whenever you need it.

Further more, if you have a Mexican bank account, you are required by US Tax law to disclose the existance of the account every year on your US tax return. US tax law allows for the imposition of a significant fine if you fail to report the Mexican account.

If you never report the account on your 1040, whether or not you will ever be discovered is another issue in and of itself together with potential IRS discovery of significant transactions that you may transact through your Mexican account.

[Edited on 10-21-2009 by MitchMan]

Mexicorn - 10-21-2009 at 03:52 PM

Quote:

Originally posted by MitchMan
BajaGuy, While you are touting Bancomer, please be forthcoming about some other considerations such as, if you want to buy Pesos with US dollars in your hand from Bancomer, even though you have an account with Bancomer, you have to first deposit your US cash into your Bancomer account and then issue yourself a check made payable to "Portador" and cash it to get your pesos. Also, if you don't have any activity in your Bancomer account for three months, Bancomer will de-activate your account and will not allow any transactions through the account (except for monthly banking fee debits). You have to talk to the bank manager at the branch at which you opened the account to ask them to re-activate the account. ALSO, if you typically make checks for small dollar amounts such as $50 USD to $200 USD for a several month period and then you make a check for $1,200 USD or more, Bancomer will deny payment on the check because, in their infinite wisdom, the $1,200 or larger amount is "out of the ordinary" and is therefore automatically suspect and will not be allowed to clear. ALSO, in order to open a USD Bancomer checking account, you have to keep $500 minimum balance at all times. ALSO, if you want to know your current bank balance in your account or want a print out of recent activity on your account while you are at the branch, you must talk to the bank manager as the tellers do not have the visibility nor the authority to give you a balance nor a print out. If you want your balance or a print out of the activity, but you are not at the specific branch you opened your account at, the manager of that branch may not give tell you your balance nor print out the activity. This is certainly true if you are in a different city than in the city where you opened your account. All my Mexican friends tell me having a checking account is generally not worth the trouble or the expense, and as such, none of them have accounts. Also, I have notived that most all independent contractors do not keep accounts for the above reasons. By the way, the above applies to Pesos accounts as well. I did all the research verified what my friends told me and decided not to open a Mexican account in any Mexican bank.

The absolute best way to manage cash in Mexico is to do your banking online with your American bank and related accounts and withdraw cash from certain Mexican bank ATM's that have the arrangement with your American bank wherein you are not charged a fee (as mentioned in a previous post). The additional benefit is that the exchange rate that you will suffer will be the best rate available. Also, this method is best for security in that you will not have to carry much currency with you, just the amount you need whenever you need it.

Further more, if you have a Mexican bank account, you are required by US Tax law to disclose the existance of the account every year on your US tax return. US tax law allows for the imposition of a significant fine if you fail to report the Mexican account.

If you never report the account on your 1040, whether or not you will ever be discovered is another issue in and of itself together with potential IRS discovery of significant transactions that you may transact through your Mexican account.

[Edited on 10-21-2009 by MitchMan]

Not true mitch I have walked into the branch in Rosarito with dollars in hand and they have changed them on the spot. I have a US account and a Peso account in Mexico with Bancomer. I also have both accounts linked which is great. I have found that they are both easy and reasonable unlike B of A's Serfin's connection that intentionally give a lower exchange rate to make up the cost. Do your homework Mitchman.

longlegsinlapaz - 10-21-2009 at 05:25 PM

Quote:

Originally posted by MitchMan

Also, if you don't have any activity in your Bancomer account for three months, Bancomer will de-activate your account and will not allow any transactions through the account (except for monthly banking fee debits). You have to talk to the bank manager at the branch at which you opened the account to ask them to re-activate the account.

This has not been true in my personal experience at Bancomer on Colina & Abasolo in La Paz....no account deactivation, nor monthly banking fees.

Quote:

ALSO, in order to open a USD Bancomer checking account, you have to keep $500 minimum balance at all times.

True, at the time you open the account, they advise you what the minimum amount on deposit is.

Quote:

ALSO, if you want to know your current bank balance in your account or want a print out of recent activity on your account while you are at the branch, you must talk to the bank manager as the tellers do not have the visibility nor the authority to give you a balance nor a print out. If you want your balance or a print out of the activity, but you are not at the specific branch you opened your account at, the manager of that branch may not give tell you your balance nor print out the activity.

True, this has been the case with all the Mexican banks I've dealt with.

Quote:

All my Mexican friends tell me having a checking account is generally not worth the trouble or the expense, and as such, none of them have accounts. Also, I have notived that most all independent contractors do not keep accounts for the above reasons. By the way, the above applies to Pesos accounts as well. I did all the research verified what my friends told me and decided not to open a Mexican account in any Mexican bank.

While it's true that many Mexicans individuals do not have bank accounts, I sincerely believe it's more because of lack of faith in banks & lack of funds to open an account, because money is made to be spent, not to be squirreled away for manana. This is primarily a cash society. The "independent contractors" I've dealt with DO have business checking accounts.

Quote:

The absolute best way to manage cash in Mexico is to do your banking online with your American bank and related accounts and withdraw cash from certain Mexican bank ATM's that have the arrangement with your American bank wherein you are not charged a fee (as mentioned in a previous post). The additional benefit is that the exchange rate that you will suffer will be the best rate available. Also, this method is best for security in that you will not have to carry much currency with you, just the amount you need whenever you need it.

Different strokes for different folks, each person manages their money in a manner which works for them & their individual circumstances. I have both a US account which I can ATM or debit card funds out of....AND I have a Bancomer peso checking account.

Quote:

Further more, if you have a Mexican bank account, you are required by US Tax law to disclose the existance of the account every year on your US tax return. US tax law allows for the imposition of a significant fine if you fail to report the Mexican account.

If you never report the account on your 1040, whether or not you will ever be discovered is another issue in and of itself together with potential IRS discovery of significant transactions that you may transact through your Mexican account.

[Edited on 10-21-2009 by MitchMan]

That'd be the TD F90-22.1 form & you forgot to mention that it's ONLY required on a sum total of equivalent USD of $10,000+ deposited outside the USA. It is required for anytime during the calendar year when & if those combined accounts exceed $9,999.99 even if it's for 1 minute. It is NOT required if you carry a running balance of $9,999.99 throughout the year.

Your "facts" are not all current or correct. Obviously Bajaguy has had positive personal experiences with Bancomer, or he wouldn't have made his post. Obviously my personal experiences with Bancomer are contrary to the "facts" in your post, or I wouldn't have felt the need to have made this post.

The items you complain about which are true are true of ALL Mexican banks, not just Bancomer; I don't feel it's fair for you to tar & feather Bancomer for following industry-wide practices in Mexico.

MitchMan - 10-21-2009 at 07:05 PM

BajaGuy, I was standing next to my cousin in La Paz just a month and a half ago when they made him deposit his US dollars into his Bancomer account and then required him to issue a check made payable to "Portador" and cash it in order to get Pesos. The bank manager then said that Mexican banks in general are not selling pesos to Americans at all. In order to get pesos from Bancomer for USD, you must have an account at their bank and you must issue a check against the account made payable to Portador. Period. I was there, I saw it, I heard it.

I am presuming that the stipulations imposed by Bancomer are largely the same as those of other Mexican banks as when I did my research, this was their representation to me and most of it was corroborated by my asking the same questions to several other Mexican banks.

Now, there may be wide inconsistencies between actual practice among the various branches within a given city and from city to city. Why not? There documented inconsistencies for application of immigration law from immigration office to immigration office, from one official to another. To learn that your experience is different from my research and different from what I specifically witnessed is not suprising nor is it particularly unexpected. It's Mexico! They specialize in inconsistency and arbitrary application of the rules. I am just reporting my physical observations and the results of my interrogations and research.

BajaGuy, you can say that your experience is different from mine, but you tread on this ice when you say I aught to do my research, because, you would be wrong.

LonglegsinLaPaz, If I lead you to believe that I was trashing only
Bancomer, it was my intent to comment on using Mexican bank accounts in general, not just Bancomer, as I mentioned above, I have no reason to believe that other banks operate significantly different than Bancomer. My first hand "very current" observations were in Bancomers in Loreto and La Paz and my corroborating inquiries were only at a few other Mexican banks in La Paz.

Tar and Feather Bancomer, please. I reported the facts as I observed them and I offered no value judgements. If the facts indict, that is not my fault nor my doing. Facts stand on their own merit. The only opinions I offered were those of my cousin and other friends...and you yourself stated that the items I "complained about are true of ALL Mexican banks". All of the objective facts I reported were neither opinion nor hearsay, they were all direct observation or responses to questions to bank managers. Actually, the only thing that you took exception to was the rendering inactive an account with no activity for three months. You corroborated everything else I stated, and corroborated the required reporting to the IRS with your own modification regarding the $10,000 requirement. Your comment about my "facts" not being current or correct don't make sense based on your own comments.

For the record, my cousin was having a cinder block wall built around his house in late 2008 when they rendered inactive his Bancomer account after only three months. The explanation the Bancomer manager gave was that that was their policy as a security measure. Argue with that. Hell, I have seen Wells Fargo do that. When
Wells Fardo did that, that bothered me, but it is not an unknown banking practice. The problem is that Bancomer did it over relatively small dollar amounts which was an exagerated application of what might otherwise be a sound banking internal control.

The reason I posted my original post was to give a heads up on the administrative side of things when opening a Mexican checking account. There are enough "Gotcha's" in dealing with Administrative Mexico as it is. Let it be known that one should always verify and corroborate everything for themselves before they act. Knowing the right questions to ask is a great help. BajaGuy and Longlegsinlapaz, you don't have a problem with that, do you?

noproblemo2 - 10-21-2009 at 07:37 PM

Banking in general, usually comes down to the relationships we develop with our bankers. We use 2 in the states, both vary on their operating procedures, one will cash a check we write to people/businesses no questions, the other will do nothing unless they call us first to get authorization, whereas our deposits are handled in the same manner by each respective bank. The one we use in Baja is the same, once a relationship is established, they know you and your needs and they will go out of their way to help us expats that are a part of "their" community.

bajaguy - 10-21-2009 at 07:53 PM

Hey, MitchMan.....lighten up........I am NOT touting anything, I said that the info was from a post on another board.

If I had any first hand experience, I would post it, since I don't.....I didn't........

Maybe you should contact Juan Gomez, Executive, Preferred Customer Unit of Bancomer in Ensenada....he may be able to get the knot out of your panties!!!!!!

Bancomer

C-Urchin - 10-21-2009 at 10:34 PM

Bancomer is a Spanish bank. Not Mexican.

longlegsinlapaz - 10-21-2009 at 11:10 PM

Quote:

Originally posted by MitchMan

Tar and Feather Bancomer, please. I reported the facts as I observed them and I offered no value judgements. If the facts indict, that is not my fault nor my doing. Facts stand on their own merit. The only opinions I offered were those of my cousin and other friends...and you yourself stated that the items I "complained about are true of ALL Mexican banks". All of the objective facts I reported were neither opinion nor hearsay, they were all direct observation or responses to questions to bank managers. Actually, the only thing that you took exception to was the rendering inactive an account with no activity for three months. You corroborated everything else I stated, and corroborated the required reporting to the IRS with your own modification regarding the $10,000 requirement. Your comment about my "facts" not being current or correct don't make sense based on your own comments.

No Mitchman, you need to go back & re-read what I actually wrote...."Your "facts" are not all current or correct.

The items you complain about which are true are true of ALL Mexican banks, not just Bancomer

I said in my personal experience:

1. Bancomer did not close my accounts due to inactivity.
2. They do not charge me a monthly bank fee.

That's not MY "own modification" regarding the funds equaling $10,000.00 or more in equivalent USD, that's factual data off the TD F90-22.1 form. If you doubt it, do a search for "IRS form TD F90-22.1" and read the requirements with your own eyes.

Maybe in a second reading of my post, you might catch that I only agreed with you in two instances....tellers can't give statements & there is a minimum balance for USD accounts, but what I failed to mention that when I had a USD account, the minimum balance was $300 USD.

The things you mentioned which I didn't specifically address, I have no personal experience with and the absence of any comments certainly cannot fall under an "assumed" agreement on my part.

Several of the specifics you attributed to Bancomer as "fact"are not in my personal experience true. You are mistaken on the IRS reporting requirements on funds banked outside the USA; if you doubt the veracity of the information, it's easily verified with a quick search.

Edit typo.

[Edited on 10-22-2009 by longlegsinlapaz]

grace59 - 10-22-2009 at 05:51 AM

We have an account at the Preferred customer branch of Bancomer in San Felipe. We opened a Peso account there for two reasons....first, we were told that to get our FM3s we would need a bank account (if you will be renting, owning property in Mexico, you will need an FM3) and second, having an account there helps to pay the Telnor and CFE bills. We've had no problems with Bancomer...no monthly fees etc.

Mexicorn - 10-22-2009 at 06:52 AM

Yea Mitchman leme jump in on this fray again! Cool your jets Player hater!!!

Don Alley - 10-22-2009 at 08:00 AM

Bozo the Clown

Homer Simpson

Alfred E Newman

Abbot and Costello

Barnum and Bailey/Ringling Bros

BBVA Bancomer

Bajajorge - 10-22-2009 at 08:34 AM

Quote:

Originally posted by Tano
Interestingly enough, there is an BBVA Bancomer branch in my neighborhood (L.A.). Anybody has experience with them?

I've had a Bancomer Peso account for several years. The only problem is you must maintain at least $100 USD worth of Pesos, and show steady useage of the account. A couple of years ago my balance dropped below $100 and I had no bank activity in several months. They closed my account and took my remaining $67. :fire:

Since that valuable lesson I have had no problem, as I electronically transfer some money to the account periodically from the USA to keep things active.

MitchMan - 10-22-2009 at 10:00 AM

Longlegsinlapaz, I believe you when you disclose the specifics of your experience with your Bancomer accounts, also, I believe all the other posts disclosing their experience. What comes to the fore is that several of you have had slightly different experiences. I was surprised at Bajajorge's statement that the peso account only had to have $100 USD worth of pesos as a minimum balance. My cousin is required to maintain a $5,000 pesos minimum balance???

I didn't say that after a 3 month period of inactivity that they closed my cousin's account, they just rendered it "inactive" and wouldn't allow any activity to continue such as honoring his checks for disbursements until he personally requested a reactivation with the bank manager. Also, my cousin definitely gets charged for each check that clears his peso and USD accounts (I am surprised that someone mentioned that they get no fees deducted from their Mexican account). This all occurs at his account which was opened at the Bancomer branch in La Paz at the corner of Colima and Abasolo (in CCC parking lot). According to my cousin and in my own experience with that branch when I asked them questions about their banking policies, the managers and other personel have all been very accomodating and professional in every way.

I am not angry with, nor do I hate Bancomer. It is the banking admin that I don't particularly care for. It seems to me that their (Mexico in general) banking procedures and policies make banking inconvenient needlessly. I believe their policies and procedures discourage maintaining an account and therefore not good for business and the economy in my opinion. Also, I want to give the readers of this forum a heads up on what to expect if they open a Mexican bank account. I think that has been accomplished by our collective posts here. That's good.

Side point. I noticed that there are Bancomer banks in Santa Ana, Orange County, California. I went into a branch in Santa Ana last year and I asked them if having an account in a Mexican Bancomer meant that one could go into the Bancomer in Santa Ana and do deposits or withdrawals or transfers from the Mexican Bancomer account at the Santa Ana Bancomer and they said no. They said that there was no connection between the Mexican Bancomers and the US Bancomers because they were separate banks in separate countries in separate banking systems under separate regulatory banking authorities. That's what I was told. Anybody heard anything different?

It seems as though we are all getting a little defensive here, including me. That's kind of wierd when we are discussing something as dry and inanimate as banking policies and procedures. Now, if we were discussing politics, that would be different.

[Edited on 10-22-2009 by MitchMan]

Woooosh - 10-22-2009 at 10:10 AM

I am "preferred customer" at Bancomer. No complaints recently. We are always waved to the front of the line and treated great by the bank employees. The new brach across from the Office Depot in Rosartio even has a seperate entrance for "Preferred cutomers" but we haven't used it yet. We have a phone number we call direct to the local office for current Peso exchange rates. Yes, we do have to exchange dollars into pesos to keep our Pesos ATM card funded- but we pick when to do the peso excahnge. We pay our CFE bill automatically as well. I havenever tried to use the Bancomer branch in San Ysidro across from the outlet stores.

longlegsinlapaz - 10-22-2009 at 11:45 AM

As with USA banks, there are various types of peso and/or USD accounts, each with different terms & conditions. Some have monthly fees, some have per check fees, some have differing levels of minimum balance requirements, etc.

I also use the Bancomer branch on Abasolo & Colima. Obviously your cousin & I have different types of peso accounts. I used the wrong term....I should have said my account has never been inactivated (vs closed) after longs periods of activity.

Quote:

Originally posted by MitchMan
It seems to me that their (Mexico in general) banking procedures and policies make banking inconvenient needlessly. I believe their policies and procedures discourage maintaining an account and therefore not good for business and the economy in my opinion.

I don't disagree with your statement HOWEVER....that statement is based on a comparison to USA banking policies....which isn't fair nor valid comparison....we ain't anywhere near Kansas, Toto. Mexico is it's own country with their own rules, for their own reasons. We create our own difficulties when we measure how Mexico does things with our trusty old USA ruler! "When in Rome...."

No Mexican Checking account for me!

Fred-o - 10-22-2009 at 11:58 AM

I went through all the hoopla, including a hand drawn map of how to get to my house in Punta Banda from the bank.
After two trips, I finally got a checking account. I got ripped off on the exchange rate for the initial cash deposit, and the limit was 2K U.S. More USD would have to be by electronic transfer. The peso was falling rapidly at the time, and I could not get my pesos out quickly enough. Went from 11 to 15, remember? My wife never did receive her ATM card although we asked for it for months afterwords. I finally got the balance down to about 7 bucks, and said adios. I think they had a 3K peso withdrawl limit per day on the account. I probably have some astronomical amount due the bank for inactivity, as I'm sure the 7 bucks would not have satisfied them. AND...they have a map to my house.

That was Scotiabank in Ensenada, and I think they are all about the same. That's what Scotiabank claimed anyway.

I just use my B of A ATM card (I have a back up card in case the machine eats it) at any Santander ATM machine.

No more Mexican bank and no more problems.

The oracle

wessongroup - 10-22-2009 at 12:04 PM

Quote:

Originally posted by longlegsinlapaz
As with USA banks, there are various types of peso and/or USD accounts, each with different terms & conditions. Some have monthly fees, some have per check fees, some have differing levels of minimum balance requirements, etc.

I also use the Bancomer branch on Abasolo & Colima. Obviously your cousin & I have different types of peso accounts. I used the wrong term....I should have said my account has never been inactivated (vs closed) after longs periods of activity.

Quote:

Once again, thank you for sharing you knowledge which is considerable on finance. The subject can be a bit overwhelming, a stright to the point answer is very rare on the subject, so again thanks

Bajahowodd - 10-22-2009 at 12:18 PM

All this should be considered with the fact that widespread retail banking in Mexico is a fairly recent phenomenon. Because of past corrupt governments and a few nasty devaluations, the average Mexican distrusted banks and kept there cash elsewhere.

Worst case scenario: bank computer crashes and your money disappears!

Lee - 10-22-2009 at 02:48 PM

Quote:

Originally posted by longlegsinlapaz
While it's true that many Mexicans individuals do not have bank accounts, I sincerely believe it's more because of lack of faith in banks ......

If this is true, and I think it is, I'm with the Mexicans on this. Do they know something the rest of you don't? Mexicans don't like the government either, for various reasons.

If you NEED a MX checking account, then there might not be an option. I've read that a checking account was necessary for a FM3 but that hasn't been my experience. (And it's not on the ''List of Requirements" given out by the La Paz migracion office for FM2 or FM3.)

Don't trust MX banking and don't plan to ever have a checking account.

Riom - 10-22-2009 at 03:40 PM

Quote:

Originally posted by longlegsinlapaz
As with USA banks, there are various types of peso and/or USD accounts, each with different terms & conditions.

Bancomer PCU in San Felipe have a leaflet (in English) showing the types of accounts available. I have the (peso) Libreton account, which has a minimum balance of 1000 pesos. Also available are Maestra (5000 pesos min) and Versatil (2000 pesos min) - main advantage of these is the ability to write (Mexican) checks, which I don't need.

Peso business accounts have minimums 3000 pesos higher (Libreton not available) and less free checks.

I use the peso account for paying local bills online, and drawing out cash (no ATM charges) for day-to-day expenses when in Mexico.

I refill the peso account every six months or so by sending USD to my Mexican Paypal account from a Paypal account elsewhere (no fee if a personal payment, or $1 for a mass pay from a business Paypal account). It's also possible to link a US bank account to a Mexican Paypal so it could draw USD from that at no cost.

In the Mexican Paypal account I convert it from USD to MXN (2.5% spread from mid-market rate, better than most retail banks), and then withdraw the pesos from Paypal direct to my Bancomer peso account (no fee at either end, gets there in about 3 or 4 days).

I also have a USD account at Bancomer which I just leave the minimum in for the FM3.

So, for those that are happy doing almost everything online (mostly in Spanish), Bancomer is fine, and refilling it from Mexican Paypal is simple and one of the best exchange rates. Like any country (including the US!), actually going into a bank branch is a pain and worth avoiding.

[Edited on 2009-10-22 by Riom]

garynmx - 10-23-2009 at 04:37 AM

For your FM3 you can show your American Bank Statement. I had it translated into spanish for $15.00. Not a big deal. You do not have to have a mexican bank account for your visas. At least my American Bank Card has my name on it. Mexican bank cards do not have your name inprinted on them.

oladulce - 10-23-2009 at 05:39 PM

Quote:

Originally posted by Riom

I refill the peso account every six months or so by sending USD to my Mexican Paypal account from a Paypal account elsewhere (no fee if a personal payment, or $1 for a mass pay from a business Paypal account). It's also possible to link a US bank account to a Mexican Paypal so it could draw USD from that at no cost.

In the Mexican Paypal account I convert it from USD to MXN (2.5% spread from mid-market rate, better than most retail banks), and then withdraw the pesos from Paypal direct to my Bancomer peso account (no fee at either end, gets there in about 3 or 4 days).

So, for those that are happy doing almost everything online (mostly in Spanish), Bancomer is fine, and refilling it from Mexican Paypal is simple and one of the best exchange rates. Like any country (including the US!), actually going into a bank branch is a pain and worth avoiding.
[

Please confirm if this is correct:

1. Send dollars from US Paypal to Mexican Paypal.
2. Convert dollars to pesos on the Mexican Paypal site.
3. Online transfer of pesos from Mex. Paypal to your Bancomer account

grmpb - 10-23-2009 at 05:52 PM

using an atm in baja with my u.s. card works fine for my needs. any way to get out of paying $5. charge for this?

Riom - 10-24-2009 at 12:43 AM

Quote:

Originally posted by oladulce
Please confirm if this is correct:

1. Send dollars from US Paypal to Mexican Paypal.
2. Convert dollars to pesos on the Mexican Paypal site.
3. Online transfer of pesos from Mex. Paypal to your Bancomer account

Yes. Be careful to avoid charges on step 1 (by making it a personal payment, or a business mass pay for $1).

In theory you are not supposed to have more than one Paypal account, although the US one can be business and the Mexican one personal. In practice an account in each country is not a problem.

The Mexican Paypal site can be used in English, and the Bancomer peso debit card worked to verify the Mexican Paypal account. (for some reason, the dollar card failed, probably inactivity).

Riom - 10-24-2009 at 12:54 AM

Quote:

Originally posted by grmpb
using an atm in baja with my u.s. card works fine for my needs. any way to get out of paying $5. charge for this?

Which bank is your US card with? Some US banks have an arrangement with some Mexican banks not to charge extra ATM fees, main example of this is Bank of America at Santander (and Scotiabank?): http://en.wikipedia.org/wiki/Global_ATM_Alliance

daledives - 10-25-2009 at 05:42 AM

Last week in Loreto I exchanged dollars for pesos and got a great rate, I had forgotten the problems everyone else was having, so it must have been a fluke

htnfool - 10-25-2009 at 08:38 AM

After reading the above post, it sounds like we can still cash in USD for Pesos, is this correct? Or do we now have to have an account to do this?
We go down to Mulege for 3 months at a time and have never needed an account. It sounds like a pain in the ass keeping a certain balance in an account and then showing activity just to keep it from going inactive. I hope we can avoid that fiasco.

Thanks for the info.

Tano - 10-25-2009 at 10:51 AM

I just now found out by pure chance that somebody sent a question through private message, but I will answer this way in case my comments caused some confusion in other people’s minds.

The name BBVA Bancomer sounded familiar to me. I knew I had seen it somewhere, and then through an Internet search, I realized that a branch was listed at a location within a commercial center I frequent in the L.A. area. When I went back a couple of days ago, I couldn’t find it. I called the numbers listed for that one and the rest, but there was no answer on any of them. Subsequently, I found out through the FDIC site that BBVA Bancomer in now BBVA Compass, which has no branches in California, but they told me when I called them that they are taking over Guaranty Bank starting in January. Nevertheless, they also told me something that I heard before from other overseas banks: each country has its own policies when it comes to handling money, which are not necessarily compatible with any other, especially the US. That said, there are exceptions according to whom (actual person/clerk/executive) you’re dealing with within a given country.

panties!!!!

wessongroup - 12-17-2009 at 07:52 PM

Quote:

Originally posted by bajaguy
Hey, MitchMan.....lighten up........I am NOT touting anything, I said that the info was from a post on another board.

If I had any first hand experience, I would post it, since I don't.....I didn't........

Maybe you should contact Juan Gomez, Executive, Preferred Customer Unit of Bancomer in Ensenada....he may be able to get the knot out of your panties!!!!!!

bajaguy - 12-17-2009 at 08:15 PM

Hey, Wiley......you just wake up??... :lol:

[Edited on 12-18-2009 by bajaguy]

Woooosh - 12-17-2009 at 09:22 PM

Quote:

Originally posted by Tano
What is the best general strategy for a retired US citizen, who has a bank account in the US (B of A), to handle money in Northern Baja for common expenses?

The B of A and Santanders partnerhip, as mentioned above- is your best route. I have B of A and am in the Preferential unit of Bancomer- mentioned above. They are very nice to me and greet me by name. The ATM fees and money transfer process would be easier if were to change to Santanders.

I Had never heard the Mexican Paypal account approach- genius! Who doesn't sell their Mexican s on e-bay?

[Edited on 12-18-2009 by Woooosh]

awake

wessongroup - 12-18-2009 at 06:15 AM

Quote:

Originally posted by bajaguy
Hey, Wiley......you just wake up??... :lol:

[Edited on 12-18-2009 by bajaguy]

No, been laying here since 2 A.M.... now drinking a cup of coffee..

The boy is going to drive me back down today.. I have gotten all the crap done I had too.. so it get to leave and go back some time this morning..

After down there, I have a couple dozen Tecate's on ice, and we then will go over to the El Pescador and have an early dinner.. I'm thinking chicken frajitas right now..

It's keeping me awake.. you get that broken water line fixed in that snow :lol:

Not funny, but brings back that "pride of ownership" center stage.. :lol:

[Edited on 12-18-2009 by wessongroup]

wessongroup - 12-18-2009 at 06:22 AM

As for banking and the money thing.. I vote for Longlegs in La Paz the gal knows her s**t.. she must have run a branch for Bancomer .... we chose Bancomer for a peso account, which is required for an FM3 I'm told by the Mayor of Rosarito.. but then he could be wrong couldn't he .....