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bammazmx

Aug 3, 2009, 9:42 AM

Post #1 of 38 (11385 views)

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SS Direct Deposits Mexico

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Since it was mentioned in the previous thread, I did a search and the last discussion on SS direct deposits to Mexican banks was from several years ago. According to that thread it can be done, but it was not a very straightforward process.

I personally have too many years to wait for me to worry about it, but I was curious because about a 2 years ago I was helping a person set up some investment accounts, ( I believe it was at Santander ), I asked if the person could have his SS deposited directly, and the person that I was speaking to was totally clueless and said that he was not aware of any way to do this. It was not an important issue, so I just left it at that.

Anyhow... Has anybody arranged for their SS to be deposited here in Mexico recently? Can you share with everybody which bank you used and what the process was?

Saludos



jennifer rose

Aug 3, 2009, 10:02 AM

Post #2 of 38 (11364 views)

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Re: [bammazmx] SS Direct Deposits Mexico

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Why not go to the Social Security Administration's very own website --- http://www.ssa.gov/ -- and check it out?


bammazmx

Aug 3, 2009, 11:20 AM

Post #3 of 38 (11349 views)

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Re: [jennifer rose] SS Direct Deposits Mexico

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I already did this. The only thing it talks about is that "foreign beneficiaries" are permitted to recieve their deposits here. That is not the same as a person collecting their own checks. It also simply says that Mexico is on the list of allowable countrys where deposits can be made, but says nothing about what the process is. At least not that I can find.

If YOU search the previous threads on this forum, you will see that this subject has been brought up in the past but there was never a very clear answer.

One person mentions that they needed to deal with the embassy/consolate, but an outcome was never mentioned. Another persons mentions that the routing numbers do not match the mexican banks forms, agian an outcome was never mentioned.

These posts were from 2005 and 2007. I just thought that since this is 2009... that possible somebody had some success, and that there are probally many people that would like to know this.


cindyblu

Aug 3, 2009, 11:40 AM

Post #4 of 38 (11341 views)

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Re: [bammazmx] SS Direct Deposits Mexico

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The "Beneficiary" is the person recieving the SS benefits. If the person lives outside of the United States, he/she is a "foreign" beneficiary.


morgaine7


Aug 3, 2009, 3:57 PM

Post #5 of 38 (11319 views)

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Re: [bammazmx] SS Direct Deposits Mexico

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I have. I applied for SS in May, through the benefits section of the Guadalajara consulate. It was a very straightforward process. I made an inquiry call and was giving an appointment for a phone interview. During the interview, I was asked where I wanted my payments deposited, and I specified my Bancomer account. All I had to do was send an email confirming my account information, i.e. the name on the account and the CLABE. My payments don't start until October, though.

Kate


bammazmx

Aug 3, 2009, 4:53 PM

Post #6 of 38 (11306 views)

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Re: [cindyblu] SS Direct Deposits Mexico

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The "Beneficiary" is the person recieving the SS benefits. If the person lives outside of the United States, he/she is a "foreign" beneficiary.


I was about to argue with you then I took a closer look at the wordings at the SS site. It is a little confusing because at times it refers to the "claiment" and his/her "benificiaries" ( I assume that could be children , ex spouse, surviving spouse etc) but at other times it does seem to use the word benificiary as anybody collecting.

I believe you are correct.

Neverless, still curious if many people have had success with this, my mother will be moving here this November to live with my wife and I, she is in the process of retiring now so I assume she will need to set up direct deposit to her US account first, (since she does not have an account in Mexico yet), then after she has an account here have it changed. I would just like to be prepared what needs done.

thanks


esperanza

Aug 3, 2009, 5:05 PM

Post #7 of 38 (11297 views)

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Re: [bammazmx] SS Direct Deposits Mexico

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Many Social Security beneficiaries who live in Mexico simply have their SS benefits deposited to their USA bank accounts and never bother having their deposits switched to a Mexican bank account. Given the glitches that often happen when changing things through Social Security, it's easier just to withdraw money as needed using any ATM in Mexico. Even though it's possible to do it, I can't see the advantage of jumping through all the international hoops to have SS deposited to a bank in Mexico.

http://www.mexicocooks.typepad.com









morgaine7


Aug 3, 2009, 6:10 PM

Post #8 of 38 (11278 views)

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Re: [esperanza] SS Direct Deposits Mexico

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Well, so far there have been no hoops, but I'll try to remember to report back on October 3 when my first payment is supposed to be deposited!

Kate


esperanza

Aug 3, 2009, 6:19 PM

Post #9 of 38 (11274 views)

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Re: [morgaine7] SS Direct Deposits Mexico

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Kate, you are starting your direct deposit at your bank here in Mexico. I was replying to another poster, who was thinking of starting his mother-in-law's direct deposit at a USA bank and then switching to a Mexican bank. It's changing something with the Social Security Administration that can cause problems.

Don't ask me how I know this.

OH! And if your address of record with the SSA is outside the USA, once a year the SSA will send you a form that you have to fill out and return to them, proving that you still reside somewhere other than the States. If for some reason the form doesn't show up at your Mexican address (which means you can't fill it out and send it back), your benefits will be cut off until you provide proof at either a US consulate or a US embassy.

Don't ask me how I know this, either.

*sigh*

http://www.mexicocooks.typepad.com









morgaine7


Aug 3, 2009, 6:39 PM

Post #10 of 38 (11268 views)

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Re: [esperanza] SS Direct Deposits Mexico

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Many thanks for the heads up on all that! It did seem almost too easy. Fortunately, my mail delivery is reliable (famous last words), but I'll make a note to watch for that form.

For anyone who may be wondering, I do have a US bank account that I've had since the '70s when I actually lived there. But it is with a small regional bank that has no setup to avoid ATM or wire fees on the México end. I'd have trouble opening a new account because of no US residence.

Kate


Peter


Aug 3, 2009, 10:58 PM

Post #11 of 38 (11238 views)

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Re: [bammazmx] SS Direct Deposits Mexico

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It does not seem there is a definite answer yet so I'll put in what I know. I am a retired US federal employee, still a bit too young for SS yet.

The government would mail my retirement check to Mexico but not direct deposit it here. For that reason I still use my US federal credit union account for direct deposit of my retirement pay. My address of record is here in Morelia for both my credit union and OPM (Office of Personnel Management, the federal agency that handles my retirement). My statements are mailed to me here in Mexico but I do not wish the mail system to handle my payments.

It could be the same policy for Social Security payments as well. When someone actually does begin to receive their SS payments by direct deposit to a a Mexican bank we will know for sure. But think about it some more if that is what you really want. The Mexican banks will tax you on the money deposited into your account. And Mexican banks have not been very reliable in the past. I have accounts with Bancomer here and in the US but I do not keep much dinero in either one.


cindyblu

Aug 4, 2009, 2:31 AM

Post #12 of 38 (11235 views)

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Re: [bammazmx] SS Direct Deposits Mexico

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The US consulate would handle the change for your mother from the US direct deposit to the Mexican bank. But she should not close the US account until she sees the first deposit made to the Mexican account. It usually happens within one month, sometimes two, depending on what time of the month she provides the information to the consular people that work with social security. If your mother isn't planning on spending a lot of dollars in the US while living in Mexico, having direct deposit to the Mexican bank is the best way to go because she won't be charged any fees.


gpkgto

Aug 4, 2009, 6:08 AM

Post #13 of 38 (11220 views)

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Re: [esperanza] SS Direct Deposits Mexico

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One year we missed the first notice of the annual SS letter and they sent a second notice--so the payment was never cut off. We now watch for the first notice at the appropriate time. I think the letter is really to confirm that the recipient is still alive--outside the US deaths are not automatically reported to SS like they are in the US.


Peter


Aug 4, 2009, 3:18 PM

Post #14 of 38 (11169 views)

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Re: [cindyblu] SS Direct Deposits Mexico

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... having direct deposit to the Mexican bank is the best way to go because she won't be charged any fees.

Not much experience with Mexican banks, eh? Being taxed heavily on your deposits I guess doesn't have to be considered a fee.


gpkgto

Aug 4, 2009, 3:57 PM

Post #15 of 38 (11155 views)

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Re: [Peter] SS Direct Deposits Mexico

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I think the 2% deposit tax is on deposits over 20000 pesos a month--or something like that. That's about US1500.00 right now.


morgaine7


Aug 4, 2009, 3:57 PM

Post #16 of 38 (11155 views)

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Re: [Peter] SS Direct Deposits Mexico

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Peter, what tax are you referring to?

Kate


morgaine7


Aug 4, 2009, 4:00 PM

Post #17 of 38 (11153 views)

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Re: [gpkisner] SS Direct Deposits Mexico

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That applies to cash deposits only. The 2% tax is not charged on wire transfers and the like.

Kate


Peter


Aug 4, 2009, 7:56 PM

Post #18 of 38 (11129 views)

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Re: [morgaine7] SS Direct Deposits Mexico

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That applies to cash deposits only. The 2% tax is not charged on wire transfers and the like.

Kate

About two years ago I transferred a few thousand from Bancomer US to my Bancomer account here for a construction project and they taxed the heck out of it.


morgaine7


Aug 4, 2009, 8:57 PM

Post #19 of 38 (11116 views)

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Re: [Peter] SS Direct Deposits Mexico

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Quote
About two years ago I transferred a few thousand from Bancomer US to my Bancomer account here for a construction project and they taxed the heck out of it.


We may be talking about different things. I'm assuming gpkisner means the 2% tax on cash deposits over 25,000 pesos or equivalent during a given month. That tax went into effect July 1, 2008.

Did your statement specify what the tax was for? I do wire transfers several times a year from my US bank to my Bancomer account, and the only charge is a wire transfer fee + IVA. It seems to fluctuate with the exchange rate but works out to about $20 USD, regardless of the amount transferred.

Kate


Peter


Aug 4, 2009, 10:56 PM

Post #20 of 38 (11100 views)

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Re: [morgaine7] SS Direct Deposits Mexico

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My bank statement did say what the deduction, was though at the time it meant little more to me than "ouch." I made two transfers that month that amounted to around $8,000 US. I don't recall the exact details and amount and am not inclined to go to my other house and dig through my papers to find out right now. If it were the two percent then that would be enough to get my attention, and written in pesos would seem even more shocking.

If you say Mexican banks are the way to go with your SS payments, fine, we all offer advice here based on our own experiences. My experience is that Mexican banks have higher minimums, larger withdrawal fees, IVA (15%?), and other surprises. Better, ask your Mexican friends and neighbors about their experience with Mexican banks.


cindyblu

Aug 4, 2009, 11:53 PM

Post #21 of 38 (11098 views)

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Re: [Peter] SS Direct Deposits Mexico

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If you are retired and you don't pay taxes on your SS income, then you don't pay tax on it in Mexico either. The US has a tax treaty with Mexico. If your income is from other sources, I guess that would make a difference, but SS is not taxable in US or Mexico.


cindyblu

Aug 5, 2009, 12:16 AM

Post #22 of 38 (11096 views)

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Re: [gpkisner] SS Direct Deposits Mexico

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I think you are correct that this notice is to inquire if the foreign beneficiary is still alive. But Social Security says these notices are periodical and not annual. I have received mine in April, May, June and July, did not receive any at all in 2007 and have not received one yet this year. My friend seems to receive one of these notices the year that her husband does not receive one and vice versa.


cindyblu

Aug 5, 2009, 1:08 AM

Post #23 of 38 (11092 views)

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Re: [esperanza] SS Direct Deposits Mexico

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This notice is not mailed out every year. It's periodical. And by the way, MAIL from the the US Social Security Administration doesn't get lost! It gets delivered faster and with more priority than any other mail -- and it would be delivered on a timely basis in Mexico just as it's delivered in any other country in the world that the US has Social Security agreements with.


cindyblu

Aug 5, 2009, 1:14 AM

Post #24 of 38 (11091 views)

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Re: [morgaine7] SS Direct Deposits Mexico

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There are no international hoops with Social Security. Your check will be deposited exactly when SS told you it will be. And it will be the same every month with no glitches until you inform the consulate to switch the deposit to another bank, afterwhich there will also be no glitches. The foreign service employees working with Social Security could not be MORE efficient. They are there to help you and they do!


gpkgto

Aug 5, 2009, 4:28 AM

Post #25 of 38 (11083 views)

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Re: [cindyblu] SS Direct Deposits Mexico

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We have gotten the SS notice every July for 7 years.


(This post was edited by gpkisner on Aug 5, 2009, 4:28 AM)
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