BajaNomad

Banking in Mexico

huesos - 8-31-2013 at 08:07 AM

Does it make sense to have a local bank account in Baja for a new resident? I know many who travel rely strictly on cards these days. It seems that there might be an advantage to having an account near to your place of residence.

greengoes - 8-31-2013 at 08:34 AM

Absolutely. If you plan on being a permanent resident check out Bancomer. You can deposit US checks up to any amount, get a good exchange rate and have a Mexican debit card that is accepted almost everywhere.

No fees for using it, online banking and cash withdrawals only cost 6.5 pesos.

Don't bother with Banamex or Santandor, they don't offer these services to ex-pats as far as I am aware.

shari - 8-31-2013 at 08:34 AM

I highly recommend a local bank account if you reside in Baja because there are many places that will take a mexican bank card but not an foreign one like at telegraph office bank machines in the more remote areas like Asuncion.

Also sometimes the foreign systems are down but you can get money out with mexican debit cards. I also like my dollar account as I can wait until the exchange rate is higher to transfer dollars to my peso account.

I also pay bills online with online banking and can buy things at stores and building supply places and just zip them the money when I get home via internet banking which saves carrying alot of cash.

I also pay workers, builders etc via internet transfer into their accounts.

having more options to access money is handy.

weebray - 8-31-2013 at 08:38 AM

If you have an account with B of A in the states there is no reason to have an account here in Mexico. At any Santander or Scotia ATM, withdrawals are free of any charges. Additionally a Charles Schwab credit card and their debit card have no associated ATM or foreign transaction fees. Finally you will find that the account fees charged by Mexican banks can be pretty dramatic.

greengoes - 8-31-2013 at 08:40 AM

Oh yea, you will need a Residente Temporal card and a utility bill - CFE - Cespe - Telnor.

DENNIS - 8-31-2013 at 09:11 AM

I carry my bank in my wallet......an ATM card. Why get involved with a bank if it isn't a necessity?

Udo - 8-31-2013 at 09:52 AM

Many Mexican businesses and workers have a Pay Pal account from which payments are transferred to and from their local banks.
The other advantage to a Mexican bank account is that you can transfer US money instantly and then withdraw it at your local Mexican bank for no fees.
Quote:
Originally posted by shari

I also pay workers, builders etc via internet transfer into their accounts.

having more options to access money is handy.

MitchMan - 8-31-2013 at 09:54 AM

What I know of maintaining a Mexican checking account is that it is more trouble than it is worth due to weird, impractical internal controls that the bank imposes, especially Bancomer. Many independent contractors do not have checking accounts for that reason, among others.

Maybe things have changed, don't know for sure.

What would make it worth it, however, is whether or not you can do online banking and account transfers between your USD Mexican account and your MXN Mexican account at good KNOWN exchange rates from within the USA. That way, one could play the currency exchange game very efficiently and make some good change. If I were to do that, I still wouldn't use the accounts very much at all for transaction purchases (because of the stupid, self-defeating internal controls), just currency arbitrage.

[Edited on 8-31-2013 by MitchMan]

monoloco - 8-31-2013 at 09:55 AM

Quote:
Originally posted by weebray
If you have an account with B of A in the states there is no reason to have an account here in Mexico. At any Santander or Scotia ATM, withdrawals are free of any charges. Additionally a Charles Schwab credit card and their debit card have no associated ATM or foreign transaction fees. Finally you will find that the account fees charged by Mexican banks can be pretty dramatic.
+1 on the Schwab account.

MitchMan - 8-31-2013 at 10:04 AM

+1 on the B of A account.

Saves me $20 to $80 USD per trip (at least six trips per year) compared to others that suffer ATM withdrawal bank charge, not-so-good ATM withdrawal exchange rates. I save even more compared to those that pay for stuff off and on with USD.

Lee - 8-31-2013 at 10:31 AM

Quote:
Originally posted by weebray
If you have an account with BofA in the States there is no reason to have an account in Mexico. At any Santander or Scotia ATM, withdrawals are free of any charges. Additionally a Charles Schwab credit card and their debit card have no associated ATM or foreign transaction fees. Finally you will find that the account fees charged by Mexican banks can be pretty dramatic.


I'll second that. As long as you have money at BofA or CS, there's no problem and no fees. I can use my BofA debit card at any ATM in MX for a fee. My thinking might be stuff of urban legends, but I am too paranoid or something to have my money in a MX bank thinking there'll be no problems. I have recourse with BofA but none in MX -- maybe I'm wrong on this.

monoloco - 8-31-2013 at 10:39 AM

Go with Schwab, B of A is EVIL!

DENNIS - 8-31-2013 at 11:14 AM

Quote:
Originally posted by Lee
My thinking might be stuff of urban legends, but I am too paranoid or something to have my money in a MX bank thinking there'll be no problems.


It was no urban legend in the 80's when I was in Ensenada the day the federales, armed to the teeth with machine guns, took over the privately owned banks. They went on the roofs and exchanged the flags with bank logos to the national flag.
It was Harvard trained Salinas who sold them back to his buddies.

bajajudy - 8-31-2013 at 11:18 AM

Do not choose HSBC....they will not take cash dollars....period.

MitchMan - 8-31-2013 at 11:57 AM

Quote:
Originally posted by DENNIS
... the federales ... took over the privately owned banks.
It was Harvard trained Salinas who sold them back to his buddies.


Never ceases to amaze as to how these things happen. Privatization of hospitals, health ins companies, and utilities in our own country saw private interests get into these industries for artificially well under market prices and immediately saw consumer prices for the corresponding products spiral up dramatically.

The exchange rate of the pesos has stabilized dramatically since NAFTA. Mexico's financial industry neither engaged in subprimes nor did they invest in US subprimes or any of the weird products or practices that together crashed the financial industry in Europe and in the USA. That reflects positively on Mexico's banking system.

Doesn't mean Mexico "can't" ruin itself in the future, but at least it doesn't suffer directly from our type financial structure mayhem brought on by our Crash of 2007/8

rhintransit - 8-31-2013 at 01:24 PM

have lived in BCS for 8 years, and traveled extensively in Mexico for 7 years before that. have never had a Mexican bank account.

mtnpop - 8-31-2013 at 01:45 PM

If you get 100 responses you will have 100 different responses probably..
Each of us does what works best for us and you have to do what you will think is the best course of action for your circumstances...
Our experience.. We do everything in BAJA with Pesos .. Fuel, groceries, restaruants etc.. works for us... At Bancomer,, you only need a tourist visa and a utility bill of some kind to set up an account.. We set up a Peso account for the above.. It comes with a debit/atm card.... We don't keep boocoo bucks in the account.. In the states we have a Wells Fargo Global Transfer account.. We go online and transfer usd to Bancomer Peso at the current exchange rate.
This allows us to have ready cash to pay workers, contractors, and daily living.
The funds are in the Bancomer account within minutes...
The fees, if you watch what you are doing are not over the top.. You also get a checkbook with your Bancomer account if you want to pay someone that way.
Also, we have for our park a Mexican paypal account with a link to a Bancomer peso account.. for park expenses owners pay to the paypal acct and we transfer to Bancomer as needed... at the current rate again... works very well for us also... since all the owners are US or Canada this helps us keep track of all our financials..
Again, this is strictly our experience and so far we are comfy with what we are doing.. Others would not be....

shari - 8-31-2013 at 02:47 PM

in Vizcaino you USED to be able to open an account with a tourist visa but that changed with the new bank president and now you need a residency card...he called it FM2 or 3 as he probably isnt current on the new immigration status....so it sounds like policy may vary from branch to branch.

DENNIS - 8-31-2013 at 02:48 PM

Quote:
Originally posted by mtnpop

Our experience.. We do everything in BAJA with Pesos ..



Only an amateur uses dollars any more unless you get jambed up and it's all you have.

mtnpop - 8-31-2013 at 03:00 PM

We had new folks in Mulege open a Bancomer accounts this last spring with only the tourist visa... of course that could have changed this summer as I am now hearing that they have changed the limit we can transfer to Bancomer now.
sometimes it just depends on the day..

and yes try to always pay with peso... no tellin what you wind up payin if you let them convert.... learned the hard way some time back...

MitchMan - 8-31-2013 at 03:56 PM

mtnpop,
Ever transfer pesos from your Mexican Bancomer account to your Wells Fargo USD Gobal Transfer account? If so, has the exchange rate been good?

chuckie - 8-31-2013 at 04:18 PM

Mexican bank accounts are a pain in the xxx...It is way simple to use your ATM card and keep some cash on hand in case the system is broke..I have lived in Mexico on and off for over 30 years and since we have had ATMs never saw it broken for more than a short time...People who pay employees etc. may have good reason to do it, I dont...The only time I had a Mexican bank account, LONG time ago, I got burned real bad..

bajagrouper - 8-31-2013 at 05:33 PM

I was in Ensenada last Wednesday I withdrew 15,000 Pesos from a Banamex ATM using my Citi banking card and by going online the same day I got an exchange rate of 13.33 x $1 USD which was the official Banco de Mexico exchange rate that day....never felt like I needed a Mexican bank account.......

chuckie - 8-31-2013 at 06:09 PM

+10

mtnpop - 8-31-2013 at 07:20 PM

Quote:
Originally posted by MitchMan
mtnpop,
Ever transfer pesos from your Mexican Bancomer account to your Wells Fargo USD Gobal Transfer account? If so, has the exchange rate been good?


We have never had or needed to return funds to the Wells Fargo account... The Bancomer acct is for access to quick funds or if you do have USD most banks will not exchange to pesos if you do not have an account..
Looks like there are plenty of posts both ways... There are those of us that don't use ATM or debit cards in the good ole USA so we don't have that option when in BAJA..
Everyone has their good, bad and ugly situations... and this one is working well for us....

Pescador - 9-1-2013 at 07:45 AM

When I lived in the United States I had a bank account, when I moved to Mexico I opened a bank account. In our town there were two options and after talking to numerous people about the difference, I opted for Bancomer instead of Banamex. I have a peso account (which is pretty cool because I only deal in pesos and have a plastic bag with dollars that I use when I go north). In Mexico you pay a tax for deposits that go over 5K but I can transfer funds from the US to Mexico in Pesos so I do not pay any federal tax on those transfers. I have a debit card which is very handy for shopping, paying for fuel, trips to La Paz with hotels and restaurants. I also am able to pay online for electricity, cable, water, and telephone. During my building phase I was able to do almost all of my transactions through the bank, which gave me records of all purchases and labor. I print out a monthly report and kept that in a file for immigration when that was still an issue.
So I find not much downside and it sure makes my life a lot easier.

BajaBlanca - 9-1-2013 at 11:02 AM

I have an account here in Mexico but how weird...some banks in the telegrafo offices charge you to MAKE a deposit. Others limit HOW MUCH you can deposit. Having been doing a number of transactions in August, I can say that Mexican banks all differ, they all have their own rules, so read between the lines. And expect the unexpected compared to the States!

bajalinda - 9-1-2013 at 01:04 PM

If you decide to get a Mexican bank account, just be prepared to deal with a whole different animal than what you are used to in the States (don't know about Canada). We are at Bancomer and need an account here because we have a business. It's true that the debit card is convenient for paying for things like gas. The online banking is also convenient for paying CFE and making transfers. However.....here comes my pet peeve.....they nickel and dime you to death on the fees. They zing us $220.00pesos/month for online banking, and then, of course, for IVA on top of that. My stateside bank doesn't charge anything for online banking. (Greengoes - I don't know how you got 6.5 pesos for online banking and transfers???) There is also a fee for transfers to other banks.

On the positive side, a couple of years ago our debit card was cloned and the thief had a merry time withdrawing funds. Bancomer re-imbursed us for everything. The customer service rep at the Bancomer on Isabel La Catolica in La Paz is also very helpful.

So it's kind of a love-hate relationship.

Oh - and yes, you can deposit a dollar check from a US bank into your Bancomer account, but it takes 10 days to clear - during which time they're using your money and you have to wait to have access to it. And unless you deposit the check at the branch that your account is connected to, the amount is limited. I found this out the hard way when I wanted to deposit a dollar check and went to the branch that I happened to be closest to instead of my "official" branch and they went through all kinds of calculations to figure out how much I could deposit. In the end, it would have been easier and probably faster, to drive across town to my official branch.

chuckie - 9-1-2013 at 01:37 PM

Thats why I dont have one..I pay my bills on line, Phone, Electric ,using my US debit card.....I see no reason to change what has been working for years...lotsa whining about ATM fees but it costs me about 12 bucks a month..No hassles, no long lines at the bank....like I said before I got burned bad ONCE ....

El Jefe - 9-1-2013 at 04:09 PM

I'm another 8 year resident without a Mexican bank account. We too use Citibank in the USA and withdraw cash from Banamex for free. We can get up to 12,000 pesos per day in 4,000 peso increments. Painless. Just pay in cash.

If you are in a construction project you might want a mexican account for that period of time. Otherwise, not needed. We had an account in mexico years ago and left it unused for a while with a few hundred dollar balance. Next time we checked the money was all gone. They take your money if you don't use it. Crazy.

valuable insight

huesos - 9-5-2013 at 01:44 PM

Once again, thanks to the members of the forum who answered this pertinent inquiry. The number of years of experience represented here is truly impressive, from immigration to finances to almost every aspect of the logistics of relocating to Baja, these forums are indispensable.