How the heck can I open an account there when I'm still here ?

How the heck can I open an account there when I'm still here ?

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My wife and I will be moving to Ajijic the first of April. Project number one is setting up banking. We want to establish a process where we can transfer money from a U.S. account to an account in Ajijic monthly. We have questioned our local bank as well as other banks and they all give us the same answer. They say we must have an account in Mexico at the time we fill out the paper work here to arrange for on going transfers as they require that account number. The obvious problem is that we have no account in Ajujic and can't open one until we are actually there.

Does any one have an answer to this dilemma? Are there banks that in Mexico/Ajijic that will allow an account to be set up via telephone of internet ? We are getting very frustrated !

Thanks,

Fred & Donna

Feb 4, 2012, 8:39 AM

Post #2 of 47 (3761 views)

Re: [twelveoaks] How the heck can I open an account there when I'm still here ?

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You have to open an account in person, show your FM3 visa, proof of address, perhaps other things, and sign papers.
A more fundamental question is: Why do you want a Mexican bank account?
Most of us use ATMs to draw money from our home bank.
Read more about your money and banking in México here.

Rolly Pirate

CanuckBob

Feb 4, 2012, 8:42 AM

Post #3 of 47 (3755 views)

Re: [twelveoaks] How the heck can I open an account there when I'm still here ?

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Hi Fred, why do you need an account in Mexico? You can simply withdraw money from your NOB account with your debit card at any bank machine in Mexico. Or at least until you can set up a local account after arriving.

Bob
Inside Lakeside
http://www.insidelakeside.com

sfmacaws

Feb 4, 2012, 8:45 AM

Post #4 of 47 (3753 views)

Re: [twelveoaks] How the heck can I open an account there when I'm still here ?

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You really don't need an account in a bank here in Mexico to simply transfer living expenses. Instead, open an account in the US that has ties to a bank here in Mexico (HSBC, Bank of America are two) and use the ATM here without charge to remove your money from the US account.

It's always better not to have all of your eggs in one basket so I'd recommend having 2 accounts in the US, one that holds most of your cash and the other that you transfer living expenses into once a month. Have different PIN numbers on the debit cards and don't carry them both around with you. Also make sure that both spouses have a card for each account. That is helpful if a card is lost or stolen or eaten by an ATM and must be replaced, you still have access to your money with the spouse's card and you can transfer money between them online.

There are several banks here that are making an effort to attract foreign business and I'm sure that is true in Ajijic as well. I've been "invited" to a few open house type events at different banks simply because I was in there looking gringa. I've let them give me their speil but I've never seen much advantage to having a local account and I can see several disadvantages. One, banking is expensive here. It's getting a little better if the young lady at Bancomer is to be believed, they have eliminated most of the charges for a normal account with a reasonable minimum balance. Two, having had friends with business accounts here it seems that transferring your account from one branch to another is not simple. My friend would have had to completely close her account and open another one when she only wanted to move to a more convenient branch. Most transactions other than debit card ones need to be made at your branch, no other will do as they don't have the all important signature card.

The only advantage I could see to having a local account would be a local Visa. I occasionally shop in online stores and generally they will only accept local credit cards. Personally, I decided it is easier to walk into a bank and pay the account of the seller in person. I'm retired and it's not a big deal as long as I don't go around the quincena.

Jonna - Mérida, Yucatán

Feb 4, 2012, 8:47 AM

Post #5 of 47 (3744 views)

Re: [twelveoaks] How the heck can I open an account there when I'm still here ?

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Citi bank has a division called :International Services. They will set up an account with Banamex ( Citi owns Banamex) when you arrive in Mexico you go to your local branch, fill oout the forms and your in business....

But Rolly asks you the perfect question, why would you want an account in a Mexican Bank...no FDIC here for one thing and deposits over the 15000 Peso 30 day limit could cost 3% tax.........

YucaLandia

Feb 4, 2012, 9:11 AM

Post #6 of 47 (3734 views)

Re: [chicois8] How the heck can I open an account there when I'm still here ?

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For newbies reading this thread: The 3% tax on cumulative deposits over the 15000 Peso per 30 day limit, only applies to cash deposits. ~ If you receive or make wire transfers to your accounts: - no tax. ~ If you deposit checks: - no tax. ~ If you receive a payment by someone transferring money from their bank account to your bank account: - no tax. ~

We personally very much like having local bank accounts to receive payments from other people/organizations, to have a Mexican credit card for the times when US/Canadian cards are not accepted, and especially to auto-pay all of our regular bills. The hours and hours saved by having auto-pay for water, electricity, phone, internet, etc are well worth setting up an account for us.

If you are a renter - with no regular bills - then having no account may be less hassle.
steve
-
-
Read-on MacDuff
E-visit at http://yucalandia.com

tonyburton / Moderator

Feb 4, 2012, 9:28 AM

Post #7 of 47 (3732 views)

Re: [chicois8] How the heck can I open an account there when I'm still here ?

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"no FDIC here for one thing..."

Mexico has had protection in place for bank accounts for many years now - see this previous thread

morgaine7

Feb 4, 2012, 9:31 AM

Post #8 of 47 (3727 views)

Re: [twelveoaks] How the heck can I open an account there when I'm still here ?

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I don't know of any way to open an account in Mexico without being here, so my suggestion would be to keep trying to work with your US bank. I had to set up my initial wire transfer (to buy my home) when I was neither in the US nor in Mexico. I ended up on the phone with an officer of my US bank, who understood my dilemma and was willing to help. When I got to Mexico, I opened an account, supplied the info to the same US bank officer directly (by fax, phone, or email, don't recall), and he put the transfer through.

Now when I want funds from the US, I just write a check on my US account and deposit it in in my Mexico account. It costs nothing and goes through at the exchange rate of the day of the transaction (not the day the check clears). It does take eight days or so for the funds to be available, so it's not a solution for emergencies, but ATM works fine for that. Like Yucalandia, I find a Mexican bank account to be extremely convenient, and the only fee for mine is 33.30 pesos /month for online access.

Kate

joaquinx

Feb 4, 2012, 9:46 AM

Post #9 of 47 (3723 views)

Re: How the heck can I open an account there when I'm still here ?

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Why do I have a Mexican bank account? I simply do not like to carry around my NOB bank card. If it is stolen or compromised in any way, I could be out a lot of money. I only use is 2 or 3 times a month to withdraw funds from an ATM and either deposit those funds in my Mexican account or put the cash in my wallet. I keep less than 10,000 pesos in my Mexican account so if it gets compromised, I am not out much money compared to the NOB account.

Often the NOB card is not accepted at some stores due to the store's subscriptions, while the Mexican card is.

If the NOB card is lost and I have to have a new one, it takes weeks for banks to send me a new one. Last time, BofA took 7 weeks to get me a new card. In the mean time, I have funds in a Mexican bank or I can wire funds to my Mexican bank in a day or two.
_______
My desire to be well-informed is currently at odds with my desire to remain sane.

(This post was edited by joaquinx on Feb 4, 2012, 9:47 AM)

richmx2

Feb 4, 2012, 10:37 AM

Post #10 of 47 (3699 views)

Re: [tonyburton] How the heck can I open an account there when I'm still here ?

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I don't move in the rarified circles of international banking, but a few years back, I was the conversation teacher for the head of the legal division of one of the major Mexican banks. He found it ironic back then that Mexican banks had better security for their depositors than U.S. banks. The recent U.S. regulatory changes after the latest economic disaster were things Mexico had instituted several years back after their own banking collapse.

During the recent banking crisis, there was very serious consideration given to forcing Citibank to sell Banamex, not because Banamex was in trouble, but just the opposite. It was the only profit center Citibank had, and Mexican regulators were extremely worried about Banamex's exposure. With the U.S. treasury pouring money into Citi to prop it up, it took some fancy lawyering and dubious rulings by Banco de Mexico to get around the Mexican regulations limiting the percentage of any foreign government's ownership of a Mexican financial institution.

http://mexfiles.net
http://voiceofmexico.com
http://editorialmazatlan.com

DavidHF

Feb 4, 2012, 12:14 PM

Post #11 of 47 (3677 views)

Re: [richmx2] How the heck can I open an account there when I'm still here ?

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You CAN open and investment account here before moving. I opened one at MutilValores, all done by email and UPS. I wanted some cash here right away. I opened a bank account later. PM me if you wish contact information for MultiValores.

Feb 4, 2012, 2:21 PM

Post #12 of 47 (3652 views)

Re: [DavidHF] How the heck can I open an account there when I'm still here ?

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Open a Banamex USA account. From most banks you can transfer money to another bank account at no charge from your existing bank. You can keep your existing account and transfer to the Banamex USA account.

When you get here, open a Banamex MX account. Then you can transfer dollars to pesos to your Banamex MX account at no charge. It's good to have a MX bank because, as one person wrote, in case you lose a card you can get it replaced immediately.

I put money in the Banamex MX account as I need it. It takes a few minutes online to transfer from US to MX. The exchange rate is good and there are no ATM fees. You don't need to use it for all your banking so no need to worry about large transfers and taxes. Transfer only what you need at a time.

Feb 4, 2012, 4:21 PM

Post #13 of 47 (3614 views)

Re: [Axixic] How the heck can I open an account there when I'm still here ?

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When I opened my Banamex USA account a few years back you needed to show you had property in Mexico by sending a copy or fax of an electric bill,or water bill or phone bill in your name.......things may have changed since that time..........

Feb 4, 2012, 5:34 PM

Post #14 of 47 (3600 views)

Re: [chicois8] How the heck can I open an account there when I'm still here ?

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Banamex USA is in the USA. Why would anyone need to prove residency in another country to open an account in the U.S.? I think that would be very illegal.

Maybe you mean to open a Banamex MX account you must prove residency in MX but an account can't be opened while in the U.S. anyway. It must be opened in person in Mexico with proper identification including a Telmex or CFE bill.

Feb 4, 2012, 6:54 PM

Post #15 of 47 (3583 views)

Re: [Axixic] How the heck can I open an account there when I'm still here ?

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This was/is a special account for retired folks from the USA residing in Mexico...You were supposed to have your pension/ SS checks deposited electronically, you received an ATM card that could be used at any Banamex
ATM without fees...Also you could send up to $10,000 USD a day at an exchange rate just a fraction under the official rate...I will try and look up the name..I have had this account for 5 years now and I did need to prove I had real estate in Mexico.....

Feb 4, 2012, 7:21 PM

Post #16 of 47 (3576 views)

Re: [chicois8] How the heck can I open an account there when I'm still here ?

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I did need to prove I had real estate in Mexico.....
No, you had to show an address where you live, not that you owned it.
I have had an account with Banamex USA for 12 years and use their ATM card at my neighborhood Banamex branch about once a week. I also have a BoA account. BoA has a much better exchange rate. The Banamex transfer rate is even worse than their ATM exchange rate. They claim not to charge a transfer fee, but they make it up with a poor exchange rate.

Rolly Pirate

(This post was edited by Rolly on Feb 4, 2012, 7:23 PM)

Feb 4, 2012, 8:38 PM

Post #17 of 47 (3548 views)

Re: [Rolly] How the heck can I open an account there when I'm still here ?

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Correct Rolly, I had to send in bills in my name to prove I lived in Mexico to open a savings account in a USA bank....The program was called Programa de Amistad or The Friendship Program

As far as transferring dollars to pesos from Banamex USA to Banamex Mexico,what would you consider a poor exchange rate, are you talking about the official rate of the day verses the rate BanamexUSA shows on their transfer peso page, or what a bank gives you as the rate of exchange?

What would be a fair rate to send say $10,000 USD?

Feb 4, 2012, 9:08 PM

Post #18 of 47 (3542 views)

Re: [chicois8] How the heck can I open an account there when I'm still here ?

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Banamex USA ATM exchange rates are usually 0.3 Io 0.4 lower than BoA ATM rates.
It's been several years since I did a transfer, but I recall the rates being 0.5 to 0.7 below
BoA's ATM rate.

The BoA exchange rate is usually very close to the rate given by Oanda.

Rolly Pirate

Feb 5, 2012, 6:02 AM

Post #19 of 47 (3505 views)

Re: [Rolly] How the heck can I open an account there when I'm still here ?

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I think the exchange rate policy must have changed. I check the rate at XE daily http://www.xe.com/ucc/ which gives the current rate and Banamex is usually .2 below that. The only time that changes is if the rate increases dramatically throughout the day but that can also change in favor of the transfer. Banamex sets the rate in the morning. If the dollar drops during the day, the rate doesn't change.

As an example, if the XE rate is at 13 then Banamex will be 12.98.

Today the XE rate is 12.6609 and Banamex is 12.62.

Like earlier posted, it's also a good to have a local bank in case the card is lost so it can be replaced immediately.

stevebrtx

Feb 5, 2012, 7:43 AM

Post #20 of 47 (3483 views)

Re: [Axixic] How the heck can I open an account there when I'm still here ?

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The .2 is about what I normally get at Bancomer. I keep a Compass acct NOB where my SSI check goes, I pay rent out of that and write a check to myself here to deposit the rest at Bancomer, money transfers are expensive even though both banks are owned by BBVA. My utilities etc. are paid in pesos to the rental agency and they have a Bancomer acct, so it's all done online. Also when you use a foreign card at Walmart or Costco etc. they tag a 3% fee on it. And recently almost all the card fraud was on international cards, don't know why, maybe just coincidence.

Of course the unspoken nuisance of FBAR hangs over us like a stale odor and if you have enough assets, FATCA also allows the Feds to do a full cavity search.
http://www.chapalaweather.net

surebought

Feb 5, 2012, 7:58 AM

Post #21 of 47 (3472 views)

Re: [twelveoaks] How the heck can I open an account there when I'm still here ?

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Money transfers are kind of problematic here. It is best to use ATM Machines with a Bank that corresponds with your Bank back home. Chase is BanNorte for example. You don't want to be down there and not have access to the funds you thought you sent. This happens all the time with Businesses and they can't make their payroll.

Feb 5, 2012, 8:31 AM

Post #22 of 47 (3456 views)

Re: [Rolly] How the heck can I open an account there when I'm still here ?

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Rolly, it is 8:26 sunday morning, I checked Oanda and their exchange rate was 12.63, I went to my BanamexUSA account and checked peso transfer and their exchange rate was 12.62...1 centavo difference and you can transfer $10,000 USD a day...I do not deal with BofA so I can not compare the 2 but I
will stick with Banamex USA...

(This post was edited by chicois8 on Feb 5, 2012, 8:33 AM)

Feb 5, 2012, 1:34 PM

Post #23 of 47 (3410 views)

Re: [surebought] How the heck can I open an account there when I'm still here ?

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The Banamex transfers are online at no charge except for what is built into the exchange rate. Banamex sends you an email within minutes stating the exchange occurred. If something went wrong, the email will say to call the Banamex toll free number. It's not complicated or expensive and having a local bank is a plus.

Feb 5, 2012, 1:34 PM

Post #24 of 47 (3410 views)

Re: [chicois8] How the heck can I open an account there when I'm still here ?

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Sunday afternoon:
BoA ATM 12.68
Banamex USA ATM 12.50 It seems odd that their transfer rate (12.62) is better than the ATM rate today.

Rolly Pirate

careyeroslib

Feb 5, 2012, 4:46 PM

Post #25 of 47 (3372 views)