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Tano
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Posts: 106
Registered: 10-20-2009
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Handling money in Baja
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?
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noproblemo2
Super Nomad
Posts: 1088
Registered: 4-14-2006
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| 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.
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bajaguy
Elite Nomad
Posts: 9247
Registered: 9-16-2003
Location: Carson City, NV/Ensenada - Baja Country Club
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Mood: must be 5 O'clock somewhere in Baja
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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
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Iflyfish
Ultra Nomad
Posts: 3747
Registered: 10-17-2006
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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
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Tano
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Posts: 106
Registered: 10-20-2009
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Interestingly enough, there is an BBVA Bancomer branch in my neighborhood (L.A.). Anybody has experience with them?
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bajaguy
Elite Nomad
Posts: 9247
Registered: 9-16-2003
Location: Carson City, NV/Ensenada - Baja Country Club
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Mood: must be 5 O'clock somewhere in Baja
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Most of the comments I have observed on the Punta Banda board were very positive regarding Bancomer and Mr Gomez
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tjBill
Senior Nomad
Posts: 516
Registered: 10-6-2007
Location: Tijuana
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If your account is with B of A (Bank of America) use the ATMs at their partner bank, Santander Serfin,; no $8 atm fee.
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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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]
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Mexicorn
Senior Nomad
Posts: 772
Registered: 9-15-2009
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| 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.
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longlegsinlapaz
Super Nomad
Posts: 1685
Registered: 11-18-2005
Location: La Paz
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| 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.
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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.
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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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?
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noproblemo2
Super Nomad
Posts: 1088
Registered: 4-14-2006
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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.
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bajaguy
Elite Nomad
Posts: 9247
Registered: 9-16-2003
Location: Carson City, NV/Ensenada - Baja Country Club
Member Is Offline
Mood: must be 5 O'clock somewhere in Baja
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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!!!!!!
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C-Urchin
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Posts: 234
Registered: 12-17-2008
Location: La Paz
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Bancomer
Bancomer is a Spanish bank. Not Mexican.
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longlegsinlapaz
Super Nomad
Posts: 1685
Registered: 11-18-2005
Location: La Paz
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| 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]
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grace59
Senior Nomad
Posts: 614
Registered: 9-14-2004
Location: San Felipe, Baja, Mexico
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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.
Whenever I hear that rainy, chill wind blow. I think it may be time to head for Mexico. Tengo que obedecer mi corazon!
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Mexicorn
Senior Nomad
Posts: 772
Registered: 9-15-2009
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Yea Mitchman leme jump in on this fray again! Cool your jets Player hater!!!
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Don Alley
Super Nomad
Posts: 1997
Registered: 12-4-2003
Location: Loreto
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Bozo the Clown
Homer Simpson
Alfred E Newman
Abbot and Costello
Barnum and Bailey/Ringling Bros
BBVA Bancomer
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Bajajorge
Ultra Nomad
Posts: 2604
Registered: 10-13-2005
Location: Topaz Lake, NV/San Felipe
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| 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. 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.
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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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]
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