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La Isla

Jul 19, 2007, 7:45 PM

Post #1 of 64 (4080 views)

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US Social Security Checks and Banking Options

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Hi, everyone. I have just turned 62 and have filed for early retirement from the US Social Security system (!). My checks will begin arriving in September, just about the time I'll be moving back to Mexico, to Mexico City, to be precise. Of course, I will still need to work part-time to cover living expenses and enjoy my semi-retirement in Mexico, so I'm planning to apply for the kind of FM3, that will allow me to work independently, in my case, as an English teacher. My question is, what's the best way to ensure that I receive my checks in a timely fashion? Can I have them directly deposited in a Mexican bank? If so, will I have problems opening an account in a Mexican bank?

Thanks in advance for your helpful comments and advice!

(This post was edited by Rolly on Aug 2, 2007, 10:17 AM)

Rolly

Jul 19, 2007, 8:36 PM

Post #2 of 64 (4044 views)

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Re: [La Isla] US Social Security Checks

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I recommend that you do what I did. Open a checking account with Bank of America and have your checks deposited there. Then use the BofA ATM card at Serfin Bank which is partly owned by BofA. That will get you the best possible exchange rate, and you won't have to deal with opening a Mexican bank account.

Rolly Pirate

S & C

Jul 20, 2007, 6:13 AM

Post #3 of 64 (4016 views)

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Re: [Rolly] US Social Security Checks

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Another alternative is to do the same thing with HSBC. If you live in an area in the states not near an HSBC branch, open up an on line account earning 5.05% and get the debit card for the same purpose. (No charge for the use if at an HSBC branch in Mexico). I believe you will need a US address to open the on line account.
Stan

alex .

Jul 20, 2007, 7:17 AM

Post #4 of 64 (4008 views)

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Re: [Rolly] US Social Security Checks

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I couldn't get my BofA card to work in the Santander machine. They are connected as well, aren't they?
Alex

Don

Jul 20, 2007, 7:21 AM

Post #5 of 64 (4007 views)

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Re: [La Isla] US Social Security Checks

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I agree with Rolly. I use Bank of American with my Mexico address. Statements are mailed to me here in Mexico. I also bank on line and have internet access to my account. I have no charges using my B of A check card at a Santander Serfin ATM machine.

Jerry@Ajijic

Jul 20, 2007, 7:27 AM

Post #6 of 64 (4002 views)

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Re: [Don] US Social Security Checks

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We opened an account with Calif. Commerce Bank 10 years ago by mail and have been using their ATM cards all over the world. Our SS & pension checks are deposited directly to our CCB account. Also CCB has been bought by Banamex (which I think has the most branches in Mexico) and now Banamex is owned by Citibank which means you have a awful lot of ATMs you can use.

Rolly

Jul 20, 2007, 7:46 AM

Post #7 of 64 (4002 views)

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Re: [Jerry@Ajijic] US Social Security Checks

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I have both BofA and CCB accounts. CCB/Banamex does not give quite as good an exchange rate as BofA/Serfin.

Rolly Pirate

Gringal

Jul 20, 2007, 9:34 AM

Post #8 of 64 (3986 views)

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Re: [La Isla] US Social Security Checks

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Bear in mind that you must open your U.S. bank account while you're still there, in person. Security regulations.

I went the route of opening one with Calif. Commerce, then opening a Banamex account after we arrived in Mexico.
If you don't speak Spanish well, there is usually someone in the branch who can help you with the paperwork in English. The process involves much stamping and paperwork and takes lots of time.

As someone mentioned, Calif. Commerce is now Citibank. You need to have the two accounts "linked" which requires a letter giving permission. Then you will be able to call a toll free number to reach Citibank from Mexico and transfer money into Banamex as needed. Note: The bank will not accept calls from a cell phone for this purpose, for security reasons.

You will have an ATM card to use at the ubiquitous Banamex machines.
You will probably also receive a Banamex USA Mastercard, which can be paid online at your Citbank website.

This arrangement is probably also true of the B of A and HSBC banks, so it's a matter of inquiring to find the best deal. It's a bit awkward to get used to, but the system works.

I have heard that you can now have your Social Security checks deposited into the Mexican banks. In my opinion, it is wise to keep your major cash in the insured U.S. bank since Mexican banks do not have insured accounts. Keep only the amount of cash in them that you can afford to lose.

NinaNina

Jul 20, 2007, 10:02 AM

Post #9 of 64 (3977 views)

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Re: [Rolly] US Social Security Checks

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Rolly-
I'm with B of A as well. When I recently went into the branch, they were talking about their SAFESEND program through which you can transmit money from your B of A account to a bank in Mexico, supposedly without charge. Have you tried this?

Judy in Ags

Jul 20, 2007, 10:37 AM

Post #10 of 64 (3969 views)

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Re: [Gringal] US Social Security Checks

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We also have had an account with what was California Commerce Bank (now CitiBank, Banamex USA) for years (which we did NOT open in person, but by mail). We never have any monies transferred to a Mexican bank, though. We have never seen the need or advantage of doing that. We just use the ATM--no charges for exchanging the dollars to pesos, or any other charges for that matter. Bank of America (is that what Rolly has?) may indeed have a little higher exchange rate. Maybe if we were starting from scratch we'd do that, but at this point we're following the "If it ain't broke, don't fix it" rule. I view our account online and they send statements here, although I guess we could go paperless.

Our Social Security and other pension checks are deposited directly to this bank in California.

Gringal

Jul 20, 2007, 11:02 AM

Post #11 of 64 (3963 views)

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Re: [Judy in Ags] US Social Security Checks

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"We also have had an account with what was California Commerce Bank (now CitiBank, Banamex USA) for years (which we did NOT open in person, but by mail). "
----------------------------------------------------------------------

If I weren't so lazy, I'd try to find the thread or maybe someone will help out here, but yes, you used to be able to open an U.S. bank account from Mexico, but that changed fairly recently. Now, if I'm correct, you can't even open an online U.S. account by mail or on the net. Homeland Security.

Help?

Judy in Ags

Jul 20, 2007, 11:06 AM

Post #12 of 64 (3960 views)

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Re: [Gringal] US Social Security Checks

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Actually, we opened it in the States by mail (from Kansas). You're probably right on, though, about the security rules having changed all that.

alex .

Jul 20, 2007, 11:21 AM

Post #13 of 64 (3956 views)

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Re: [NinaNina] US Social Security Checks

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I've used safe-send several times. It works pretty good actually: if the transaction occurs in the morning then the receiving bank has the funds authorized to distribute in about 2 hours. If in the afternoon, then the following day. The person you are sending money to does not have to have an account at the receiving bank. The only time I had a problem was when I got the person's maternal and paternal last names backwards. The bank in Mexico would not distribute the funds. I had to cancel the transaction and initiate a new one, losing a day. And, indeed, it is a free service.
Alex

Rolly

Jul 20, 2007, 11:26 AM

Post #14 of 64 (3956 views)

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Re: [Judy in Ags] US Social Security Checks

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Judy is right, it is now very hard to open a bank account in the USA. Someone suggested the best way is to marry the banker's daughter. Among the requirements are to apply in person and to have a verifiable address in the USA. But there may be a way around that.

Banorte now owns a bank in Texas, Inter National Bank. I was told by e-mail from Banorte that when one opens an account with Banorte, one can also opt for an account with Inter National Bank without going there and without the need for a USA address. I have not tried it, so I can't verify that it really works that way.

Rolly Pirate

(This post was edited by Rolly on Jul 20, 2007, 11:28 AM)

La Isla

Jul 20, 2007, 5:30 PM

Post #15 of 64 (3916 views)

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Re: [Rolly] US Social Security Checks

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Thanks to everyone for your prompt and very helpful responses! Since I am still in the US, it shouldn't be very complicated for me to open an account with Citibank or Bank of America and arrange to have my SS checks directly deposited in my account. I don't think either of these banks operates in Philadelphia, where I'm located, so I may have to go up to New York to open an account.

NEOhio1

Jul 20, 2007, 5:59 PM

Post #16 of 64 (3909 views)

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Re: [La Isla] US Social Security Checks

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We have neither BoA or Wachovia on the ground in our former US location, opened both on internet had to print something out and sign it and send it in to both. We send miscellaneous deposits to special internet address for each bank, pension is direct deposited, transfers to financials here in Mexico free from either bank. The only one who charges me is Merrill Lynch, and they charge to push a button....wish we could do without them.

scubabride

Jul 21, 2007, 8:59 AM

Post #17 of 64 (3869 views)

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Re: [NEOhio1] US Social Security Checks

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Hey all, it's been awhile since I posted. FINALLY wasapproved for my SSDI which means I can do my FM3.

As to the banking, I opened a BOA account altho I detest them lol. I did it last year because of safe send and the inexpensive mexico ATM and exchange rate. I have requested direct deposit to this account, but just did so as my original application listed a different bank...waiting to see the back pay deposited, hopefully to BOA. Eventually I may open a local acount in Cozumel. For now I have myself listed on safe send so all I have to do is call it in.

NinaNina

Jul 21, 2007, 7:11 PM

Post #18 of 64 (3818 views)

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Re: [scubabride] US Social Security Checks

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Hey, Scubabride, thanks for posting about SafeSend. I have one last question regarding the service: I know it is fee-free at the sending institution, but is it free-free at the receiving institution as well? Oh, oops, one more question--is the lack of fee compensated for with a less competitive exchange rate? B of A assured me this is not the case, but I don't find myself in the habit of believing what bankers tell me about bank policies.

Gracias,
Serena

Rolly

Jul 21, 2007, 7:33 PM

Post #19 of 64 (3811 views)

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Re: [NinaNina] US Social Security Checks

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The bank does not charge for receiving the transfer. BofA, which many folks love to hate, gives a very good exchange rate when you use their ATM card at a Serfin branch in Mexico. I do it all the time and track the exchange rates.

Rolly Pirate

scubabride

Jul 21, 2007, 9:37 PM

Post #20 of 64 (3797 views)

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Re: [NinaNina] US Social Security Checks

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Exactly what Rolly said! The only thing is you have to register your safe send information in person, after that you just call the safe send dept to do a transfer!!! Fee free on both ends.

Judy in Ags

Jul 22, 2007, 7:30 AM

Post #21 of 64 (3772 views)

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Re: [Rolly] US Social Security Checks

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Rolly, can you give us a ball park amount of the difference in exchange between CitiBank Banamex and Bank of America?

Thanks!

Rolly

Jul 22, 2007, 8:14 AM

Post #22 of 64 (3765 views)

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Re: [Judy in Ags] US Social Security Checks

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A few days ago I used an ATM at Serfin to take money from BofA. They gave an exchange rate of 10.78. The same day Banamex was giving 10.54 for wire transfers from CCB. ATM withdrawals from CCB at Banamex were 10.74.

There's not much difference in the ATM rates, but the CCB/Banamex wire transfer is pretty expensive.

Rolly Pirate

Anonimo

Jul 22, 2007, 9:14 AM

Post #23 of 64 (3749 views)

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Re: [Rolly] US Social Security Checks

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In Reply To

I have both BofA and CCB accounts. CCB/Banamex does not give quite as good an exchange rate as BofA/Serfin.

Ah, well; we are CCB-Banamex account holders and would hate to again go through the red tape processes to change to BoA/Serfin.

Rollyb:

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There's not much difference in the ATM rates, but the CCB/Banamex wire transfer is pretty expensive.

The point of the account linking at Banamex USA and Banamex Mexico are the free transfers. Could you expand on your statement, please, Rolly?

Saludos,
Anonimo

(This post was edited by Anonimo on Jul 22, 2007, 9:22 AM)

Rolly

Jul 22, 2007, 9:33 AM

Post #24 of 64 (3744 views)

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Re: [Anonimo] US Social Security Checks

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"Free" is sometimes a relative thing. Yes, the wire transfers from CCB to Banamex are free in the sense that there is no obvious charge for the transfer. At the same time they are not free in the sense of the poor exchange rate.

Rolly Pirate

Rolly

Jul 22, 2007, 9:47 AM

Post #25 of 64 (3739 views)

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Re: [Rolly] US Social Security Checks

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I should add that I opened accounts with CCB and Banamex 6 years ago because at that time it was the easiest and cheapest way to transfer funds to a Mexican bank. That was a service I needed at that time for my building projects. Since then several banks have come forward with low-cost ways to link USA/Mexican accounts -- some better deals than CCB/Banamex. I still have those accounts, but I only transfer funds in the three months preceding my FM3 renewal time. Having statements from a Mexican bank makes renewing my FM3 easier. The rest of the year I use an ATM card for a better exchange rate.

Rolly Pirate

(This post was edited by Rolly on Jul 22, 2007, 1:36 PM)

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