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nomore

Mar 17, 2013, 4:19 PM

Post #1 of 25 (31064 views)

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Bank interest rates

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In the states we have an HSBC savings account which is currently getting .0.60 % interest.

In Mexico we have an HSBC CD (?), renewable monthly, which is currently getting 2.78% interest. If we increase it by 100,000 pesos we can get 3.7%.

Do any of you guys shop around for interest rates ?

Is there a newspaper/website you know of which compares today's rates ?

Is a CD the best / only investment opportunity available to foreigners ?

Thanks



jackak10

Mar 17, 2013, 5:13 PM

Post #2 of 25 (31043 views)

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Re: [chuck4430] Bank interest rates

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In the states we have an HSBC savings account which is currently getting .0.60 % interest.

In Mexico we have an HSBC CD (?), renewable monthly, which is currently getting 2.78% interest. If we increase it by 100,000 pesos we can get 3.7%.

Do any of you guys shop around for interest rates ?

Is there a newspaper/website you know of which compares today's rates ?

Is a CD the best / only investment opportunity available to foreigners ?

Thanks


The answer will depend on where you want to keep your money. If your "base of operations" is in the states, you need to keep in mind the fluctuating exchange rates. If it is here, you need to remember that the Mexican inflation rate is officially around 5% and probably more. 2 7/8% doesn't sound so great, but as you say -- what else is there to do.

Depends maybe on which bank and just how much you trust the Mexican bank with no FDIC to keep you safe.


roberb7


Mar 18, 2013, 7:37 AM

Post #3 of 25 (30957 views)

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Re: [chuck4430] Bank interest rates

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I got a quote from Scotiabank last week for a CD. (They're called CETE's.) It was 4.1% for 100,000 pesos for six months. The amount and the time period are the minimums.

I checked BBVA Bancomer and Actinver a couple of months ago, and their rates were lower than what Scotiabank was offering at the time.


Aaron+

Mar 18, 2013, 10:21 AM

Post #4 of 25 (30897 views)

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Re: [jackak10] Bank interest rates

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Jaclal10 wrote, in part, "Depends maybe on which bank and just how much you trust the Mexican bank with no FDIC to keep you safe."

The nearest Mexican equivalent to the FDIC is the decentralized federal Instituto para la Protección al Ahorro Bancario (IPAB), created in 1998 by act of the Mexican congress. It stands behind deposits with commercial Mexican banks in savings accounts, savings instruments, and checking accounts up to the value of $US 400,000. See:
http://www.ipab.org.mx/ipab/english
Note that only accounts with commercial banks are covered. The IPAB website in Spanish includes a listing of all covered institutions.

FDIC involves a US Treasury commitment. It is not clear to me whether the Mexican government is as fully committed to the IPAB's fund.

CETES are a direct obligation of the federal Government of Mexico and are not to be confused with bonds issued by Mexican states etc.


DavidHF

Mar 18, 2013, 11:23 AM

Post #5 of 25 (30880 views)

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Re: [Aaron+] Bank interest rates

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Check with MultiValores and Actinver. Generally they offer better rates. CETES are availalbe only in denominations of $500,000 Pesos. Anything less than that amount will be invested in a "money market" account that holds cetes. Many offere interest rates above 4%.


nomore

Mar 18, 2013, 11:45 AM

Post #6 of 25 (30871 views)

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Re: [DavidHF] Bank interest rates

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Thanks guys for the info.

We currently have less that 500,000 pesos invested in a "Constancias de deposito" which at the moment renews every month. We plan on meeting the $500,000 peso limit which HSBC requires to get a permanent debit card or a credit card. (apparently). The next opportunity to do that is this Friday.

Do you know if being a Permanent Resident limits the things we can do at a bank in Mexico ?

Thanks


jackak10

Mar 18, 2013, 11:52 AM

Post #7 of 25 (30869 views)

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Re: [chuck4430] Bank interest rates

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Thanks guys for the info.

We currently have less that 500,000 pesos invested in a "Constancias de deposito" which at the moment renews every month. We plan on meeting the $500,000 peso limit which HSBC requires to get a permanent debit card or a credit card. (apparently). The next opportunity to do that is this Friday.

Do you know if being a Permanent Resident limits the things we can do at a bank in Mexico ?

Thanks


Don't know about HSBC, but the people at Scotia Bank have never asked to see anything but my passport in five years.

It takes 500,000 pesos deposited in the bank to get a credit card? Really?


nomore

Mar 18, 2013, 12:08 PM

Post #8 of 25 (30862 views)

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Re: [jackak10] Bank interest rates

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I KNOW it takes 500,000 pesos to be a 'Premier' customer at HSBC Mexico, US was I believe $100,000 USD. Perhaps they just want it in an investment other than a checking account. I guess the CC etc are part of their premier program - not sure.


joaquinx


Mar 18, 2013, 12:22 PM

Post #9 of 25 (30855 views)

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Re: [chuck4430] Bank interest rates

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We plan on meeting the $500,000 peso limit which HSBC requires to get a permanent debit card or a credit card. (apparently). The next opportunity to do that is this Friday.


I have a HSBC account with a debit card and I have way less than 500k in my account. I believe that a credit card requires, by their standard, a FM2 type visa.
_______
My desire to be well-informed is currently at odds with my desire to remain sane.


nomore

Mar 18, 2013, 12:29 PM

Post #10 of 25 (30846 views)

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Re: [joaquinx] Bank interest rates

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We have an HSBC US credit card which is dollar based but we wanted a peso based card. We have a Mexican HSBC debit card but it is temporary and has limits on its use.

Yes - the wait for our PR creds certainly slowed things down. Even after we got them the bank still has been dragging their feet it seems. Perhaps they had their hands slapped with all the money-laundering charges lately.

I sent off a letter to the girl at HSBC asking for more info on CETES...

(This post was edited by chuck4430 on Mar 18, 2013, 12:57 PM)


roberb7


Mar 21, 2013, 2:48 PM

Post #11 of 25 (30685 views)

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Re: [roberb7] Bank interest rates

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OK, here's something specific. I bought a CEDE this morning at Scotiabank; 100,000 pesos for six months at 3.8%.
The one-year rate was also 3.8%.
Obviously, I wish I had pulled the trigger on this a couple of months ago, but I didn't have the 100,000 pesos in one place at that time.


nomore

Mar 21, 2013, 3:14 PM

Post #12 of 25 (30672 views)

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Re: [roberb7] Bank interest rates

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3.8% is not bad for that amount of money for that timeframe (from a HSBC standpoint anyway). And yes - I believe you would have gotten 0.5% more last week before the rates dropped.

I had a phone call with a pretty sharp girl at HSBC Mexico City. She really wasn't enthusiastic about the CEDE but was trying to suggest HSBC bond (mutual) funds instead which yield 6.04% and which have no time commitment.

If I understood her correctly a bank CD really has 1.1 % in fees which you have to back out of the quoted rate. The CEDEs have .5 % fees. I didn't think the bond fund had any but I need to investigate more closely.

I'm also sure - but for now I would probably live with it - that HSBC really isn't the place to go for the highest yield. Right now it is very convenient for us.


roberb7


Mar 21, 2013, 4:13 PM

Post #13 of 25 (30648 views)

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Re: [chuck4430] Bank interest rates

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I had a phone call with a pretty sharp girl at HSBC Mexico City. She really wasn't enthusiastic about the CEDE but was trying to suggest HSBC bond (mutual) funds instead which yield 6.04% and which have no time commitment.


Here's Scotiabank's "fondos de inversiones": http://www.scotiabankinverlat.com/...guia_ejec/socinv.pdf

I searched it for bond funds, but I couldn't find the words "fianza" or "obligacion" in it. What I did notice is that the funds with higher-interest returns have very high minimums.


In Reply To
If I understood her correctly a bank CD really has 1.1 % in fees which you have to back out of the quoted rate. The CEDEs have .5 % fees. I didn't think the bond fund had any but I need to investigate more closely.


The receipt I have depicts the 3.8% as the "tasa bruta final", which doesn't tell me anything. However, it shows the "interes bruto" as 1,900 pesos, which is... 3.8%.

Now, about those "fondos de inversiones"; I'm trying to get a credit card out of these people, mainly for the purpose of buying airline and bus tickets online. They told me that the easiest way to do this is put, for example, 10,000 pesos into a fondo de inversion, and they could give me a credit card with a 10,000 peso limit.


roberb7


Sep 22, 2014, 11:07 AM

Post #14 of 25 (29257 views)

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Re: Bank interest rates

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For those of you who try to stay on top of this sort of thing, I renewed a CEDE at Scotiabank this morning. The amount was a little over 100,000 pesos, and the rate I got for 182 days was 2.43%. If I understood the guy correctly, the 360-day rate was even lower.

I just checked HSBC's site, and their rates are in the same ballpark.


careyeroslib

Sep 22, 2014, 12:34 PM

Post #15 of 25 (29219 views)

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Re: [roberb7] Bank interest rates

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Robert: thanks for the info re: Scotia and credit cards. I couldn't get a credit card at HSBC through the normal application process because I don't have a credit history and I don't have a job so I don't qualify. I'll try the "fondos de inversion" route.


arbon

Sep 22, 2014, 1:01 PM

Post #16 of 25 (29214 views)

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Re: [roberb7] Bank interest rates

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For those of you who try to stay on top of this sort of thing, I renewed a CEDE at Scotiabank this morning. The amount was a little over 100,000 pesos, and the rate I got for 182 days was 2.43%. If I understood the guy correctly, the 360-day rate was even lower.

I just checked HSBC's site, and their rates are in the same ballpark.


The inflation rate is close to 4%.
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roberb7


Mar 24, 2015, 10:44 AM

Post #17 of 25 (28114 views)

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Re: [roberb7] Bank interest rates

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I just did a CEDE renewal at Scotiabank yesterday. I got a piece of new information. Scotiabank makes a distinction between a "CEDE" and a "pagare", and it was actually a pagare that I ended up getting. The differences are, a CEDE pays out interest every month, and a pagare compounds it (pays out the interest when the pagare matures). This is what I wanted. The pagare also pays more interest; 2.7% for a year, as opposed to 2.19 for a CEDE.


DigYourself

Mar 24, 2015, 11:19 AM

Post #18 of 25 (28105 views)

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Re: [roberb7] Bank interest rates

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Check out :
http://www.cetesdirecto.com/servlet/cetes/inicio

You can buy CETES/BONOS/FONDOS directly from the Mexican government and cut out the middle man (Scotiabank). We have had an account with them since last August. No problems. Nice website.

Current 6 month CETES quoted at 3.4% interest and you can invest anything from 100 pesos up.

Edit : and then remember to take out .6% from all the percentages you see quoted - for Mexican withholding tax. eg. Your pagare will only net you 2.1%


(This post was edited by cuerna1 on Mar 24, 2015, 12:32 PM)


arbon

Mar 25, 2015, 8:15 AM

Post #19 of 25 (28000 views)

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Re: [cuerna1] Bank interest rates

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Check out :
http://www.cetesdirecto.com/servlet/cetes/inicio

You can buy CETES/BONOS/FONDOS directly from the Mexican government and cut out the middle man (Scotiabank). We have had an account with them since last August. No problems. Nice website.

Current 6 month CETES quoted at 3.4% interest and you can invest anything from 100 pesos up.

Edit : and then remember to take out .6% from all the percentages you see quoted - for Mexican withholding tax. eg. Your pagare will only net you 2.1%

and now...
The inflation rate in Mexico was recorded at 3 percent in February of 2015.

so you have to make 3% interest per year just to protect your capitals value.

PS...Inflation Rate in Mexico is reported by the Instituto Nacional de Estadística y Geografía (INEGI).
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ifyoucanttakeajoke


Mar 25, 2015, 8:21 AM

Post #20 of 25 (27996 views)

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Re: [arbon] Bank interest rates

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and now...
The inflation rate in Mexico was recorded at 3 percent in February of 2015.

Tell that to anyone who has been to the grocery store or gotten gas in his/her car over the last year.


DigYourself

Mar 25, 2015, 8:35 AM

Post #21 of 25 (27992 views)

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Re: [arbon] Bank interest rates

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http://www.banxico.org.mx/...acion/inflation.html

But - I believe - still a better situation than up North.


arbon

Mar 25, 2015, 8:35 AM

Post #22 of 25 (27992 views)

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Re: [ifyoucanttakeajoke] Bank interest rates

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In Reply To
and now...
The inflation rate in Mexico was recorded at 3 percent in February of 2015.

Tell that to anyone who has been to the grocery store or gotten gas in his/her car over the last year.


¿Can't the expats help their gardeners to grow vegetables, instead of driving to the grocery store?
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arbon

Mar 25, 2015, 9:44 AM

Post #23 of 25 (27967 views)

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Re: [cuerna1] Bank interest rates

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http://www.banxico.org.mx/...acion/inflation.html

But - I believe - still a better situation than up North.


The inflation rate in the United States was recorded at 0 percent in February of 2015.

The inflation rate in Canada was recorded at 1 percent in February of 2015.

and Canada is predicting negative inflation? but not deflation...yet
Feb 19, 2015
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DigYourself

Mar 25, 2015, 9:53 AM

Post #24 of 25 (27964 views)

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Re: [arbon] Bank interest rates

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I saw that - but I don't buy it.

For example - here's an article about the premium increase % for Obamacare :
http://www.forbes.com/...ats-going-to-happen/

What all is excluded from inflation stats in the US ? Apparently food and fuel for starters.
http://www.bankrate.com/...han-you-think-1.aspx

I think consumer spending is something like 70% of US GDP. Think about that...


roberb7


Feb 23, 2017, 7:51 AM

Post #25 of 25 (18035 views)

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Re: [DigYourself] Bank interest rates

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I just checked http://www.cetesdirecto.com/servlet/cetes/productos
The rate there now is 6.92% for a year, and that applies to relatively small amounts, such as 10,000 pesos.
 
 
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