Mexico Connect
Forums  > General > Living, Working, Retiring


TxGypsy

Nov 5, 2015, 9:24 AM

Post #1 of 23 (10974 views)

Shortcut

    

BofA alternative?

  | Private Reply
BofA has thrown us all under the bus with their 3% fee. Are there any US banks that don't take us to the cleaners to withdraw pesos at ATM's?



bournemouth

Nov 5, 2015, 9:39 AM

Post #2 of 23 (10968 views)

Shortcut

    

Re: [TxGypsy] BofA alternative?

  | Private Reply
We personally are very happy with our BBVA Compass Bank account which allows us to withdraw from BBVA Bancomer machines with no service charge. Depending on the account you have with Compass, there may not be an international transaction fee either. But it is all dependent on your location NOB. You can check their offices here:

http://secure.bbvacompass.com/locations/


(This post was edited by RickS on Nov 5, 2015, 9:49 AM)


Azuledos


Nov 5, 2015, 2:45 PM

Post #3 of 23 (10931 views)

Shortcut

    

Re: [TxGypsy] BofA alternative?

  | Private Reply
If you have mutual funds or brokerage investments with Fidelity, you can open a linked Cash Management Account (= bank account). ATM fees are refunded, no matter where in the world you access the cash. Good rates. We access thru Banamex here in Fortín.

================================
Veracruz has to be the best kept secret in Mexico.
http://etepetzin.blogspot.com -&- http://azuledos.blogspot.com


skier14

Nov 6, 2015, 5:18 AM

Post #4 of 23 (10883 views)

Shortcut

    

Re: [TxGypsy] BofA alternative?

  | Private Reply
My Chase account is charged $5 for each ATM transaction regardless of the amount of withdrawal, at least in my case no more than 6000 pesos per transaction.


johanson


Nov 6, 2015, 6:02 AM

Post #5 of 23 (10877 views)

Shortcut

    

Re: [TxGypsy] BofA alternative?

  | Private Reply
I never have more than 10 to $20K in my B/A account but I found a way not to pay that 3% fee. Luckily my retirement fund is in Merrill Lynch which is owned by B/A. By linking the two together, should the total be more than $250,000 US, you do not have to pay that 3% fee.
Oh the average IRA or retirement fund according to Mr. Google, is close to $300,000 for the average person in his 60s.


Aaron+

Nov 8, 2015, 9:19 AM

Post #6 of 23 (10719 views)

Shortcut

    

Re: [johanson] BofA alternative?

  | Private Reply
"Oh the average IRA or retirement fund according to Mr. Google, is close to $300,000 for the average person in his 60s. "

Happy for you with your retirement fund balance. Do realize that, according to a Federal Reserve survey, 38% of adult Americans lack any retirement savings or fund. http://www.reuters.com/...dUSKBN0OC23O20150527
Then, for soma added perspective to "Mr. Google's" figure (and Google is not a direct source), consider the difference between AVERAGES, which is heavily weighted towards the richest (as the poorest have no such funds and are not counted towards the average fund holding) and the MEDIAN:
"The average and median IRA account balance in 2010 was $67,438 and $17,863, respectively, while the average and median IRA individual balance (all accounts from the same person combined) was $91,864
and $25,296." http://www.ebri.org/...-2012_No371_IRAs.pdf (That report looks only at traditional and Roth IRAs; there are of course other channels for funding retirement.)

Mexican Immigration's check, in recent years, on temporary resident and new permanent resident (no prior temporary) candidates' assets may mean that a fair number of us have or better Mr. Johanson's asset status. For those lucky folks, he valuably notes an advantage of holding your assets in a few buckets with the same financial institution.


RickS


Nov 8, 2015, 10:51 AM

Post #7 of 23 (10704 views)

Shortcut

    

Re: [johanson] BofA alternative?

  | Private Reply
"...the average person in his 60s"

But Pete, an average person is not a 'he'.....


johanson


Nov 8, 2015, 12:08 PM

Post #8 of 23 (10687 views)

Shortcut

    

Re: [RickS] BofA alternative?

  | Private Reply
The important thing is that should he, she, it, or they have at least $250,000 US in Merrill Lynch which he she or it has linked to a B/A bank account that he, she , or it can qualify not to have to pay B/A their 3% foreign exchange fee when using an ATM here in Mexico when withdrawing Mexican pesos from a US dollar account at B/A linked to that Merrill Lynch account or accounts.


rvgringo

Nov 8, 2015, 2:41 PM

Post #9 of 23 (10665 views)

Shortcut

    

Re: [johanson] BofA alternative?

  | Private Reply
May I edit that a bit?

The important thing is that one should have at least $250,000 US in Merrill Lynch linked to a B/A bank account, which can qualify as exempt from the 3% foreign exchange fee at an ATM in Mexico, when withdrawing pesos from a US dollar account which is linked to Merrill Lynch accounts.

Not a he, she or it in sight. :)


johanson


Nov 8, 2015, 7:02 PM

Post #10 of 23 (10630 views)

Shortcut

    

Re: [rvgringo] BofA alternative?

  | Private Reply
Hey RV, that was written much better. Keep up the good work :)


Aaron+

Nov 9, 2015, 7:02 PM

Post #11 of 23 (10546 views)

Shortcut

    

Re: [rvgringo] BofA alternative?

  | Private Reply
Hmm... from where I came from, one gets a lot of suspicious looks if one refers to others as ones.

As for your political correctness, sorry, I learned grammar in the 1950s and '60s from teachers who knew grammar, and from my Mother. That was all before the political correctness nonsense hit the fan. In fact, I have no intention to conform my usuage to people nowadays who do not know what grammar is, present parties excepted.

Lots of luck down here trying to warp Spanish to PC.


(This post was edited by Aaron+ on Nov 9, 2015, 7:04 PM)


TedZar

Nov 10, 2015, 4:36 PM

Post #12 of 23 (10466 views)

Shortcut

    

Much less complicated

  | Private Reply
I use a credit union which only charges 1% and gives a really good exchange rate. For us without hundreds of thousands of dollars in our brokerage accounts, a good credit union is a great option.

For us non-big-money players pretty much there is no free lunch. You might pay 3% transaction fee and get a GREAT exchange rate. Or some places will give you 1% transaction fee and a lousy exchange rate, but you'll still usually find that credit unions are overall the best in terms of bottom line ways to get your money across the border.


DavidHF

Nov 17, 2015, 2:11 PM

Post #13 of 23 (10220 views)

Shortcut

    

Re: [TedZar] Much less complicated

  | Private Reply
The exchange rate is NOT set by the institution you withdraw from but the clearing house they use. VISA and MasterCard are the most common. You can check their daily rates online. Your financial institution sets the transaction charge. Few have none, most charge 1%, rapacious ones charge 3% or more.


joaquinx


Nov 18, 2015, 6:56 AM

Post #14 of 23 (10152 views)

Shortcut

    

Re: [DavidHF] Much less complicated

  | Private Reply

In Reply To
The exchange rate is NOT set by the institution you withdraw from but the clearing house they use. VISA and MasterCard are the most common. You can check their daily rates online. Your financial institution sets the transaction charge. Few have none, most charge 1%, rapacious ones charge 3% or more.


True for the credit card rate, but not for the debit or the ATM card rate as that is set by the issuing bank.
_______
My desire to be well-informed is currently at odds with my desire to remain sane.


YucaLandia


Nov 18, 2015, 8:40 AM

Post #15 of 23 (10137 views)

Shortcut

    

Re: [joaquinx] Much less complicated

  | Private Reply

In Reply To

In Reply To
The exchange rate is NOT set by the institution you withdraw from but the clearing house they use. VISA and MasterCard are the most common. You can check their daily rates online. Your financial institution sets the transaction charge. Few have none, most charge 1%, rapacious ones charge 3% or more.


True for the credit card rate, but not for the debit or the ATM card rate as that is set by the issuing bank.


I think we may be talking about at least four (5) different rates in this dialogue:
~ If you use XE.com and other internet rates - they set their own rates on a trade by trade basis - like stock/equity prices they are a real "exchange" ... which is the mid-market rate - that is the mid-point between what the buyer paid, and what the seller received ... minus the "other rates" skimmed off by the bank/exchange/brokers.

~ If you actually use XE.com to make the exchange, they give you a precise quote for an exchange rate that is good for a short period of time.

~ If you stick your debit card or credit card into either an ATM or use it for purchases, the central clearing-houses almost universally establish a "daily" rate ... not published until after-the-fact ... and that "daily rate" is applied when the transaction actually posts to the system.

~ If you walk into a Mexican bank, or US bank, their exchange-office (possibly far-away), offers you yet a DIFFERENT rate than those described above, based on their own internal-current-bank policy.

Sometimes, the currency offices of big banks (especially Mexican banks) will be nervous about the near-future weakening of the MXN peso ... so they WANT US dollars ... which means they pay very favorable rates (higher than published "market rates") to people selling US Dollars ... giving us many more MXN pesos than XE.com or WSJ rates or Banco de Mexico rates or Visa or Master card processing-house rates.

and ... to add to the confusion ... in addition to those 4 kinds of "exchange rates" ... we also have the additional "rates" charged by banks et al for processing the transactions - which are better called transaction fees of 0.75% - 3% - as their "cut" that is taken off of the "exchange rate".

Clear as mud?

Consider this summary article on how to get the best "rates": Banking, Exchanging Currency, & Using Credit Cards & ATMs in Mexico

Happy Trails
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com


DavidHF

Nov 18, 2015, 11:53 AM

Post #16 of 23 (10113 views)

Shortcut

    

Re: [joaquinx] Much less complicated

  | Private Reply
I disagree juaquinx, the debit card transaction uses the VISA or MasterCard clearing house. They set the rate Banks don't have time or resources to be setting exchange rates everyday for various currencies which is why they use VISA, etc.


YucaLandia


Nov 18, 2015, 12:03 PM

Post #17 of 23 (10110 views)

Shortcut

    

Re: [DavidHF] Much less complicated

  | Private Reply

In Reply To
I disagree juaquinx, the debit card transaction uses the VISA or MasterCard clearing house. They set the rate Banks don't have time or resources to be setting exchange rates everyday for various currencies which is why they use VISA, etc.


For better or worse, facts show: HSBC, Scotiabank, Bancomer, and Banamex all set their own individual rates ~ that can change throughout the day - for debit-card transactions, when you use their ATM machines. (not Visa or Mastercard)

That's why different ATMs and different banks give different rates, even within the same day.

You can only be assured of getting the clearing-house Visa or Mastercard rates by making purchases, not ATM withdrawals, because the purchases are posted and processed at the end of the day (or up to 3 business days later).
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Nov 18, 2015, 12:05 PM)


joaquinx


Nov 18, 2015, 12:19 PM

Post #18 of 23 (10103 views)

Shortcut

    

Re: [DavidHF] Much less complicated

  | Private Reply

In Reply To
I disagree juaquinx, the debit card transaction uses the VISA or MasterCard clearing house. They set the rate Banks don't have time or resources to be setting exchange rates everyday for various currencies which is why they use VISA, etc.


This is getting complicated as BofA says that they do it for ATM cards. Does that include debit cards? They are vague regarding this. Credit cards are establish at either Visa or Mastercard - for sure. Now this begs the question on why are some ATM machine rates different by local bank and even foreign card. Yucalandia says that local banks do it. But what rate do they use? The one from Bank of Mexico or make one up?

BofA also states that they personally establish currency rates on all foreign currency and revise them at least once a day. They do no discriminate between ordering currency from them while in the US and if you are in front of an ATM machine in a foreign country with either a debit or credit card.
_______
My desire to be well-informed is currently at odds with my desire to remain sane.


YucaLandia


Nov 18, 2015, 12:54 PM

Post #19 of 23 (10096 views)

Shortcut

    

Re: [joaquinx] Much less complicated

  | Private Reply
Hi joaquinx,
I'm not making up any of that stuff...

Talk with a knowlegeable manager at your HSBC, Scotiabank, Banamex, and Bancomer ... and they will tell you that their company has an office/department that decides once or twice a day (or sometimes more often) on what exchange rate to use when they are buying US Dollars ... and giving us MXN pesos.

That's why we've been given the very best exchange rates - noticeably better than their ATM rates - when we go to a local branch manager, and say:

"We have $3,000 USD ... or $5,000 USD ... or $10,000 USD ... What is the best rate you can give us?"

The account manager or bank manager then excuses themselves, to make phone calls/contact their "home-office" exchange rate department (possibly in Puebla, or Monterrey, et al) ... and the manager then comes back in 10 - 20 minutes with their "best offer" exchange rate -

based on that moment's decision by their exchange-department's decision of whether they want more MXN pesos or more US Dollars ... and based on how large an amount you want to exchange. ... Larger amounts exchanged almost always command more favorable rates than either the "ATM" rates and better than the bank's posted/published generic rate for that day ...

So, people can certainly describe their perceptions of how the systems work, but I prefer to follow what each bank manager says, and trust what the XE.com people tell us on how things actually work.

Happy Trails,
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com


joaquinx


Nov 18, 2015, 1:00 PM

Post #20 of 23 (10091 views)

Shortcut

    

Re: [YucaLandia] Much less complicated

  | Private Reply
I certainly not questioning you research, but then again, individual branch manager have little, if none, say on the rate that the ATM give. Yes, if you haul a bunch of dollars into the branch and ask what rate are you going to give me or I walk across the street, the manager has quite a bit to say.
_______
My desire to be well-informed is currently at odds with my desire to remain sane.


YucaLandia


Nov 18, 2015, 1:16 PM

Post #21 of 23 (10085 views)

Shortcut

    

Re: [joaquinx] Much less complicated

  | Private Reply
Hi j,
I'm not explaining it well. The branch manager of big banks like HSBC, Scotiabank, Bancomer, Banamex does NOT have say over what exchange rate they offer you. In every case we've seen, they contact some central-home-office that makes these decisions.

And that's why previous post's insistence that Mastercard & Visa "clearing-houses" set the rates on cash exchanges at ATMs does not fit the big Mexican banks operations.

... and yes, I forgot to answer your question on the Bank of Mexico's "official rates":
That's yet another little labyrinth - swamp. Banxico Rates: "Banco de México" classically looks at the previous day's mid-market "rates" (mid-point of sell and buy orders) as reported by XE.com, the Visa and Mastercard clearing houses, OANDA, and other foreign exchange market close-of-the-day rates - and then ...

the "Banco de México" takes "an average of quotes in the wholesale foreign exchange market(s)" ... "for operations payable in 48 hours", to determine that day's rate. That means that the official "Banco de México" rate, as published daily in the DOF... is ONE DAY LATE ... as an average of the previous days trading averages from various markets.

... and then the Banco de Mexico uses that DOF published rate (from the previous day's markets) on the following day's payments/receipts... which makes it 2 full business days out-of-sync with the XE.com market rates. *grin*

"Banco de México informs the FIX from 12 o'clock onwards ... each banking day. "

That rate is then published in the Official Gazette (Diario Oficial de la Federación) "one banking business day after its determination date", which is then 2 business days after the XE.com rates.

This means that the official Banxico rate is not ever available to us .... because it is used to settle liabilities denominated in U.S. dollars ... payable in Mexico on the day after its publication in the Official Gazette.

clear as mud ???

Happy Trails,
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Nov 18, 2015, 1:18 PM)


DavidHF

Nov 19, 2015, 2:44 PM

Post #22 of 23 (9982 views)

Shortcut

    

Re: [YucaLandia] Much less complicated

  | Private Reply
None of which has anything to do with the OP's original question.


YucaLandia


Nov 19, 2015, 6:54 PM

Post #23 of 23 (9962 views)

Shortcut

    

Re: [DavidHF] Much less complicated

  | Private Reply
Hi David,
That's true, but it corrects a bunch of earlier mis-information that leads people to incorrect conclusions about how to best change $USD to $MXN pesos, and it answers questions posted by other Mexconnectors.

Happy Trails,
steve
-
Read-on MacDuff
E-visit at http://yucalandia.com
 
 
Search for (advanced search) Powered by Gossamer Forum v.1.2.4