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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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Separate countries have separate banking systems (hence different regulations, policies and procedures) by law, period.
It has always amazed me to observe the differing attitudes that people have towards their money. I am a penny pinching, price watching cheap skate
and I love a deal; hate to pay retail. I don't have to watch my pennies, I just love doing it; it's an avocation and a hobby.
I can't understand careless shoppers in a super market who willy nilly throw things into their shopping basket without regard to price. They load up
on all the slick and very expensive packaged items, walk out of the store having paid $70 USD for 1 shopping bag of groceries never giving it a second
thought. So, I can see why so many don't give a hoot what the exchange rate is in Baja when buying pesos.
I think if people actually understood the "time value of money" as taught to all business graduates, the cavalier attitude towards cost of money
wouldn't be so forgiving of the fees and detrimental exchange rates experienced by some (maybe most) people.
For example, did you know that a 1% or 2% commission/fee per withdrawal of funds at an ATM is equivalent to an annual interest expense charge of 365%
and 730% on your money?
I spend about $7,000 USD in Baja every year vacationing and fishing there. The difference between an exchange rate of 11.8 versus 11.4 is about $250
USD for the year. That $250 can buy about 27 liter bottles of Jose Cuervo Gold, or about 80 Sonoran Beef rib eye steaks, or 93 Margaritas at my
favorite bar on the Malecon in La Paz, or gas and oil for my boat for 18 fishing trips.
Not saying that not paying attention to nor caring about exchange rates is immoral or the wrong way to be as a person, just saying it results in
waste.
If you do care about preserving your funds if at all possible, then get yourself a Bank of America checking account in the USA with an ATM card and
withdraw pesos from a Satander ATM with that card while in Baja and you will get the best exchange rate possible at the time of withdrawal while nogt
experiencing any withdrawal fees at all.
Also, leave Baja with at least the equivalent of $300 USD in pesos ( today that's about $3,500 in pesos) and that way, upon returning to Baja, you
will have sufficient pesos to get you by until you can make it to Santander when it is convenient to get more pesos. Keep that par of at least $3,500
pesos when you leave Baja.
Easy, painless, practical, convenient, smart, eliminates waste, allows you to buy more tequla, margaritas, rib eye steaks, and gas for fishing.
[Edited on 5-24-2011 by MitchMan]
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Bajatripper
Ultra Nomad
Posts: 3152
Registered: 3-20-2010
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| Quote: | Originally posted by MitchMan
I can't understand careless shoppers in a super market who willy nilly throw things into their shopping basket without regard to price.
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To back up one of your points, Mitchman; I'm one of those who pays a little attention at least to prices in supermarkets here, which is why I noticed
this great sale item at our local Chedraui recently.
I could either buy one bar of Palmolive soap for $7.70 pesos or I could buy three for the supersale price of 24 pesos.
While I had no problem resisting such a great offer and instead settled for just one bar of soap, I did take the announcement as a souvenir.
[Edited on 5-24-2011 by Bajatripper]
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surfdoc
Nomad
Posts: 235
Registered: 8-18-2009
Location: Bahia Asuncion BCS
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Yo Derek
Used the ATM in Vizcaino last Friday... 1500 for 134.90.
However, add the 29 peso's charge plus 5$ from my bank... it ends up being about 10:1........
Still wouldn't live anywhere else...
See ya Saturday!
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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I run into those false sales at Walmart in La Paz all the time on a variety of items. Makes me laugh.
Here's a tip, if you're interested. When you see a price for meat or fish stated in pesos per kilo, divide the peso price by 25 and you will get the
approximate price per lb in USD: example: rib eye @ $142 pesos per kilo = 142/25 = approx $5.70 USD per lb.
Back to exchange rates. I track the exchange rate on the internet daily (I am fixated, I admit that). I have noticed that the banks, B of A in my
case, apply a rate to a given ATM withdrawal based on yesterdays internet rate. That is to say that there is a slight delay by banks that trail the
internet published exchange rates. For example, if the exchange rates have been dropping daily and continue to drop even after your withdrawal, then
the exact exchange rate applied to todays withdrawal will be closer to yesterday's internet exchange rate than todays internet exchange rate. That
has been my experience.
[Edited on 5-24-2011 by MitchMan]
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bajalou
Ultra Nomad
Posts: 4459
Registered: 3-11-2004
Location: South of the broder
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| Quote: | | If you do care about preserving your funds if at all possible, then get yourself a Bank of America checking account in the USA with an ATM card and
withdraw pesos from a Satander ATM with that card while in Baja and you will get the best exchange rate possible at the time of withdrawal while nogt
experiencing any withdrawal fees at all |
But it you have to drive 150 miles to find a Satander ATM, you've lost more than you've gained.
No Bad Days
\"Never argue with an idiot. People watching may not be able to tell the difference\"
\"The trouble with doing nothing is - how do I know when I\'m done?\"
Nomad Baja Interactive map
And in the San Felipe area - check out Valle Chico area |
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yellowklr
Senior Nomad
Posts: 507
Registered: 4-14-2006
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| Quote: | Originally posted by surfdoc
Yo Derek
Used the ATM in Vizcaino last Friday... 1500 for 134.90.
However, add the 29 peso's charge plus 5$ from my bank... it ends up being about 10:1........
Still wouldn't live anywhere else...
See ya Saturday! |
Yeah thats the prob i get hit with those same 2 fees......I just got 11.15 to 1 at the Chula Vista Costco so I Can't complain. Especially considering
yours ended up at around 10.5 the all the fees.
[Edited on 5-24-2011 by yellowklr]
Derek
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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| Quote: | Originally posted by bajalou
But it you have to drive 150 miles to find a Satander ATM, you've lost more than you've gained. |
Obviously, bajalou, you're right about that. Each person can only do what is practical and available. Also, I can see where cost (fees, bad exchange
rates, ATM charges) of buying pesos can be viewed as just another cost of traveling, as such, is a minimal and trivial cost of travel.
On that tack, if you maintain a presence in Baja, there are alot of things that relate to cost of travel, such as transportation to and from airports
both in Baja and at the US airport, plus the differing airfares to the different locations in Baja.
For instance, if you like to go to Todos Santos or Los Barriles, you will incur a substantial additional cost to get from the Baja airport to your
destination as opposed to having the destination as the same city that the airport is in. I am always amazed as no one ever brings that cost
differential up as an issue. To me it would be a huge cost issue, since I come and go about 10 times a year. But, I suppose if you only drive to and
from your baja destination or if you only come and go a few times a year, then it may be a non-issue.
As much as I like Loreto, I personally would have to eliminate it as a destination because of the exhorbitant air fares from Southern California.
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bacquito
Super Nomad
Posts: 1615
Registered: 3-6-2007
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Mood: jubilado
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I have an account at Santander. I can use my Bof A debit card to withdraw money and there is no charge.
bacquito
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dtbushpilot
Ultra Nomad
Posts: 3296
Registered: 1-11-2007
Location: Buena Vista BCS
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Mood: Tranquilo
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| Quote: | Originally posted by Bob and Susan
american and mexican banks di not work together
no matter what they say
it doesn't work
if you transfer money...you pay
nobody rides for free
take my word on this |
You are right. I never said that the transfer was free. I get the current exchange rate and there is no charge from Bancomer. (Bancomer is always
better than Banamex IMHO) and my bank charges me $3.50 for the transfer. I usually transfer $1500-$2000US at a time so the $3.50 isn't much of a fee.
If I use my Bancomer card to get money from an atm I have to pay the 21 peso fee per transaction so I usually take out $5000 pesos at a time. If I go
to the window with my card I can get whatever amount I want with no fee.
[Edited on 5-24-2011 by dtbushpilot]
"Life is tough".....It's even tougher if you're stupid.....
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bajagrouper
Senior Nomad
Posts: 964
Registered: 8-28-2003
Location: Rincon de Guayabitos, Nayarit, Mexico
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Mood: happy and retired
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I have to be able to take out large sums of pesos ( about 40,000 Pesos) maybe 3 times a week for building and labor costs...I have a Schwab Bank
Checking Account that has an ATM card, any fees charged are rembursted at the end of the month statement....I have a CitiBank Gold Account with ATM
banking card and all fees are waived and a Banamex USA account with ATM card fee free if used at a Banamex ATM....
Oh MitchMan, dug what you were saying until you got to the Jose Cuevro Gold...
I hear the whales song
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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I knew somebody might say something about that. Actually, I personally usually buy Jose Cuervo Tradicionales for Baja, but buy Cuervo Gold for taking
back home to USA as nobody I drink with in USA can tell the difference. Works fine for Margaritas topped off with a splash of Damiana. Tried a shot
of Don Julio last month...smooth. However, since I stopped drinking too much about 20 years ago, apparently I don't care what I drink these days.
I did mention I was cheap, didn't I?
[Edited on 5-25-2011 by MitchMan]
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