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YucaLandia


Jan 2, 2016, 7:04 AM

Post #1 of 36 (9130 views)

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Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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As a part of our ongoing series of articles to help US expats living abroad, here's a How To Do It article on having our Social Security deposits made directly to our Mexican bank accounts.

http://yucalandia.com/...xican-banks-article/

Happy Holidays,
steve

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



joaquinx


Jan 2, 2016, 8:06 AM

Post #2 of 36 (9120 views)

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Re: [YucaLandia] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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This seems to be the best exchange rate possible. Better than ATMs. Of course, you are subject to the swings of the currency exchange rate. It could benefit you or not.
_______
My desire to be well-informed is currently at odds with my desire to remain sane.


YucaLandia


Jan 2, 2016, 10:05 AM

Post #3 of 36 (9095 views)

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Re: [joaquinx] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Excellent point.

Some modestly-rich commentators have claimed that they have so much $$ that they only need to make US dollar to MXN pesos transfers-exchanges just twice a year => "saving them money on the exchange rates" ...

Just like on other issues: Affluent people live under different rules than the rest of us.
Affluent people sit on their Social Security checks, parking them in their US bank accounts for 6 months - 9 months at a time.

They say:
"When the USDollar : MXN Peso rate moves to a point that I like, I make a single large exchange."

,
Sounds good, right?

It makes a difference, though, if you are looking backward (I got a better rate now than a month ago) versus looking forward ... "I can get a better rate next month - by not changing/transferring out so much this month"

Consider this past 1 years & 3 big exchanges.
If you made your first big exchange 1 years ago ... you got just $13 pesos per dollar.

If you then made your second big exchange 1 year ago, you got $14.5 : 1
... which means that during the 6 months while you were spending the $13:1 pesos ...
~ in the meantime you could have gotten $14:1 using smaller exchanges => You lost 8% in the meantime ... ~

,
If you then made your third big exchange 6 months ago, you got $15 : 1
... which means that while you were spending the $14.5:1 pesos ...
in the meantime you could have gotten $15:1 using smaller exchanges => You lost 3.5% in the meantime ... ~

,
If you made your third big exchange 6 months ago, you got $15 : 1 ... yet the market zipped up to $17:1 in the meantime...
... which means that while you were spending the $15:1 pesos ...
in the meantime you could have gotten $17:1 using smaller exchanges => You lost 13.5% in the meantime ... ~


... makes sense?
steve
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Read-on MacDuff
E-visit at http://yucalandia.com

(This post was edited by YucaLandia on Jan 2, 2016, 10:19 AM)


DavidHF

Jan 2, 2016, 11:02 AM

Post #4 of 36 (9082 views)

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Re: [YucaLandia] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Not really. You didn't "lose" anything. Pesos are Pesos and better to buy them when you need them, not in advance.


ifyoucanttakeajoke


Jan 2, 2016, 1:22 PM

Post #5 of 36 (9069 views)

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Re: [DavidHF] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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In Reply To
Not really. You didn't "lose" anything. Pesos are Pesos and better to buy them when you need them, not in advance.

With the peso at over 17 to 1 on the US dollar, I'm getting some for a rainy day.


DavidHF

Jan 3, 2016, 9:17 AM

Post #6 of 36 (9012 views)

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Re: [ifyoucanttakeajoke] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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In Reply To

In Reply To
Not really. You didn't "lose" anything. Pesos are Pesos and better to buy them when you need them, not in advance.

With the peso at over 17 to 1 on the US dollar, I'm getting some for a rainy day.


No rush, it's going to fall further this year.
http://longforecast.com/fx/mexican-peso-to-us-dollar-forecast-for-2015-2016-and-2017.html


(This post was edited by DavidHF on Jan 3, 2016, 9:20 AM)


jreboll

Sep 1, 2016, 9:21 AM

Post #7 of 36 (5966 views)

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Re: [DavidHF] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Dumb question here. If I have 500 dlls on hand and I can withdraw the same amount from my local ATM (Scotia Bank) in Michoacan. Should I exchange the dollars or or withdraw from ATM? Which would give me the better exchange rate? Here in s. Texas the premium is 1.15 p/dollar


ifyoucanttakeajoke


Sep 1, 2016, 10:01 AM

Post #8 of 36 (5957 views)

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Re: [jreboll] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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In Reply To
Dumb question here. If I have 500 dlls on hand and I can withdraw the same amount from my local ATM (Scotia Bank) in Michoacan. Should I exchange the dollars or or withdraw from ATM? Which would give me the better exchange rate? Here in s. Texas the premium is 1.15 p/dollar

Do you mean you get 1.15 pesos for a dollar in Texas? In Mexico it's inching up toward 19 to 1 (pesos to dollars).


jreboll

Sep 1, 2016, 10:13 AM

Post #9 of 36 (5953 views)

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Re: [ifyoucanttakeajoke] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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The premium is the buy and sell difference from the spot price. Yesterday the exchange price was 18.81 pesos per dollar but the bank would only give me 17.65 pesos per dollar


rockydog85251

Sep 1, 2016, 10:31 AM

Post #10 of 36 (5949 views)

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Re: [jreboll] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Today Intercam was giving $18.20 for the dollar.
Willie


jreboll

Sep 1, 2016, 10:47 AM

Post #11 of 36 (5944 views)

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Re: [rockydog85251] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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I looked up Intercam. The nearest one is 3 hours away


mcm

Sep 1, 2016, 11:18 AM

Post #12 of 36 (5936 views)

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Re: [jreboll] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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ATMs typically offer excellent exchange rates. BUT -- make sure that your home bank does not charge 3% foreign transaction fee for the withdrawal using their debit card, and also take into account any fees charged by the ATM bank AND any withdrawal fee charged by your home bank. If your home bank doesn't charge for the withdrawal, and doesn't charge a 3% foreign transaction fee for use of their debit card, then the ATM would be the way to go (in my opinion).


jreboll

Sep 1, 2016, 12:55 PM

Post #13 of 36 (5923 views)

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Re: [mcm] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Thanks for your answers. My CU doesn't charge fee so I'll go with my ATM card and carry as little cash as possible. I'll post the exchange rate when I get there.


chinagringo


Sep 1, 2016, 4:23 PM

Post #14 of 36 (5907 views)

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Re: [jreboll] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Why do NOBers have such a fixation over an exchange rate that changes constantly? Too bad they don't allow you to chase the lowest price for gas as yet. Once that goes into effect, there will be even more daily challenges!
Regards,
Neil
Albuquerque, NM



jreboll

Sep 1, 2016, 4:28 PM

Post #15 of 36 (5906 views)

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Re: [chinagringo] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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It is not the exchange rate so much but the gouging the banks do. On 1000dlls they take 1150 pesos. That is sixty dollars in top of the fee. Think about it.


chinagringo


Sep 1, 2016, 4:39 PM

Post #16 of 36 (5905 views)

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Re: [jreboll] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Well I am still worried about finding fast food restaurants in Mexico who allow "free refills"!
Regards,
Neil
Albuquerque, NM



YucaLandia


Sep 1, 2016, 5:03 PM

Post #17 of 36 (5904 views)

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Re: [chinagringo] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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In Reply To
Why do NOBers have such a fixation over an exchange rate that changes constantly?
Too bad they don't allow you to chase the lowest price for gas as yet. Once that goes into effect, there will be even more daily challenges!


For people who live on a fixed income, and who are not affluent, the difference between an 18.2 rate and an 18.8 rate means pulling an extra 3% per month out of limited savings.

So, to stay off the public dole, and to not have to move in with the kids ... some people watch their spending ... and their exchange rates, to live responsibly.

Others who have excess pension income, or deep savings accounts are lucky to not have to worry about 3%-here or 5%-there.

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

(This post was edited by YucaLandia on Sep 1, 2016, 5:04 PM)


jreboll

Sep 1, 2016, 5:53 PM

Post #18 of 36 (5896 views)

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Re: [YucaLandia] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Hear, hear. But there is a certain pride on being frugal and making do without having to ask the kids for help.


Gatos

Sep 2, 2016, 3:57 AM

Post #19 of 36 (5876 views)

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Re: [YucaLandia] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Some people have deep savings accounts BECAUSE they worry about 3%-here or 5%-there.

btw - 12 month CETE now earning 4.75 % (before taxes).


chinagringo


Sep 2, 2016, 6:34 AM

Post #20 of 36 (5865 views)

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Re: [jreboll] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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Really tough giving back any of that "free money" you gained from a more favorable exchange rate? I be darned if I can find any dictionary definition that equates frugal with cheap.
Regards,
Neil
Albuquerque, NM



jreboll

Sep 2, 2016, 7:51 AM

Post #21 of 36 (5851 views)

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Re: [chinagringo] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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I already mentioned the bank charging a premium of 1.65 pesos per dollar and somehow you are justifying this. Your reasoning excapes me. You call me "cheap" because I am trying to minimize the expense of exchanging money.
Next time you want to exchange dollars, let me know, I'll pay you 12.50 pesos per dollar.


RuralPuebla

Sep 2, 2016, 9:49 AM

Post #22 of 36 (5829 views)

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Re: [YucaLandia] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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I was raised poor, and as a result when I started working, I was very frugal. My wife on Saturday's would take our little daughter and go downtown to a high priced high service department store, paying a premium on everything she bought.

I would go around to the discount department stores, and when I got home, I would be totally stressed out and still didn't have everything I wanted. To save a few dollars.

She would come home by bus, paid by the store, with everything on her list. Happy, no stress, had a good day. One day, it came over me that there is more to life than saving dollars. I had to learn to spend money for a good stress-free life, not just for minimum cost.

I use a US bank with a % charge on ATM machines such as you mention. We economize on things that are not important, such as luxury items. Our cost of living is so low that even with modest income, (in the US we would be very poor) we do quite well. I am not going to get into the stress of spending large amounts of time saving every penny I can on my monetary needs. Life here is too good without that stress.

That is a personal choice, as it is a personal choice for those who go to great lengths to save every penny possible.


Gatos

Sep 2, 2016, 10:59 AM

Post #23 of 36 (5820 views)

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Re: [RuralPuebla] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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For us it wasn't so much watching the pennies as watching the dollars. We have never owned a car for less than 10 years. We have never paid a penny in credit card interest. We have never paid a penny on a mortgage. We have paid cash for just about everything in life. If I use a credit card we pay off the balance each month. I have lived for years earning $100/week living in a trailer and for years earning mid six figures living in a waterfront home. Guess I got lucky.

Since coming to Mexico our big ticket items were; the house, a new car, and a bank account which has enough pesos that we should be able to never bring more dollars here if we don't want to. We got the house for about 14:1, We got the car at about 18:1. The bank account varied from about 13:1 to perhaps 17:1. I wanted to have enough pesos here close so if someone sometime imposed capital controls we would be ok. Our bank account is earning a little North of 4%.

Today I use my peso based Costco CC at Costco. I use my BofA blue Visa card for Pemex and any other expense more than say 300 pesos. I use my Schwab Visa debit card to extract NEW pesos from the ATM. I pay our Mexican expenses (the Costco CC, Telmex, IUsacell, homeowner's association, water etc) via billpay from our bank account.

Edit : I think rather than trying to time a dollar/peso exchange - it makes good sense to make sure you make a 'smart' exchange. NEVER give somebody 3% to make the conversion for you. That is simply throwing your money away. Go to yahoo.com and see what the current quote is for MXN=X. Compare that to what you are being quoted.


(This post was edited by Gatos on Sep 2, 2016, 12:09 PM)


chinagringo


Sep 2, 2016, 3:22 PM

Post #24 of 36 (5789 views)

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Re: [jreboll] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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There are appears to be a few misstatements regarding the fees being charged for using an ATM machine and a debit card? Certainly banks in Mexico without co-op agreements with NOB banks have the right and do charge a bank fee for accommodating your out of country Debit card. But then there is a Foreign Exchange Fee that I believe is charged by ones NOB bank. Playing with these numbers or adding the two fees together to make a point sounds like something a politician might do?
Regards,
Neil
Albuquerque, NM



RuralPuebla

Sep 2, 2016, 3:30 PM

Post #25 of 36 (5787 views)

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Re: [Gatos] Direct Deposit of Social Security Deposits to Mexican Bank Accounts

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>> NEVER give somebody 3% to make the conversion for you. That is simply throwing your money away.

I understood your posting fine. I assume you did not understand mine. You manage money your way, and be proud of yourself. I will manage my money my way and don't care about three percent charges, if that is what it is. And, I don't view it as throwing my money away. I view it as living well with minimal stress.

Obviously, your life is dedicated to worship of money. Mine isn't. Our difference is you are intolerant of anyone who lives differently than you do and does not share your worship of money. Using my money to live well without stress is not throwing my money away.
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