Withdrawing from ATM

I bank with Banco del Austro and their ATM limit is $200 a day, whether you are a bank customer or withdrawing from another bank, foreign or otherwise. But, I recall someone posting elsewhere saying that their bank ATM allowed $500 per day. Hopefully, someone else can confirm this. Withdrawal from a teller, if you have a local account, has much higher limits. With Banco del Austro, I have a checking account, physical checks, and a debit card.  Once you become a permanent resident, you can always open an account here. Again, a previous post suggested that some banks will let you open an account without a Cedula (National ID Card), but that will have to be confirmed by another person. If you do have a local account,you can pay through that account. You would then periodically wire into that account what you need from a U.S. Bank based on what is best for you, and leave the bulk of your money in the U.S. Or, do as you say: just visit the ATM for a few days before rent is due, and pay the ATM fees. It is a bit like six of one and a half dozen of the the other: either wire fees or ATM fees. The only advantage to wiring money is that is is not a percentage of the amount so you save considerably with large transfers. But, that may defeat your desire to keep your money in the U.S.

I don't think it is easy to cash a check from a foreign bank. I tried depositing a Cashier's check (the safest form of check) here and ran into many obstacles. I finally gave up and mailed the check back to the originating bank in the U.S. I don't have any misgivings about writing a check on my Ecuadorian account, but find cash works well. I bought a small device in the U.S. that verifies the authenticity of bills (white light for watermarks and color shifting, UV for the UV strip and, a pen for testing the paper). It was less than $30 dollars. It is really helpful because counterfeit bills are very common here, even $20 dollar bills. It is best to pay in small bills; most people will not take hundred dollar bills.

There is absolutely no such thing as a silly question if you don't know the answer. But not all questions have easy answers, like the ones you have asked today.

Joseph,
I know of a number of people that have used personal checks drawn on US banks for purchases in Ecuador: Cuenca specifically. I'm not suggesting at markets and small vendors, but from larger stores, for example, an appliance store. My attorney accepted a personal check from me, as did the construction company that owned my condo development. The biggest issue as I see it is the time it takes for the check to go through, or clear the US bank, which I'm told is 5 to 7 days. Of course, larger vendors can afford to bridge that time gap that a smaller one couldn't.
I agree that most day to day transactions are best done with an ATM, combined with an account at a Credit Union or bank for automatic bill pay.

Thank you so much ZenSPIKE. This is really good to know. I am going to try again since being able to use a U.S. check here, at times, would be very valuable. I am always appreciative of having so may different experiences recounted here, since I rarely get to Cuenca and haven't had the opportunity to interact with any expats. I just learned about Club Correos the other day through Ned's comments and figure that tip is worth it's weight in gold. Mmmm, well I suppose weight is not a good measure since a comment doesn't weigh that much. But, you get the point.

I have asked this question several times all over this forum. Has anybody used American Express travelers checks. Back when I had more hair and teeth, it was the only and safest way to have money on you. I do ATM but if your rent is due and your withdrawal is $200 a day, that means that I have to stash that money until I have enough for whatever.

Traveler's checks are not a good option. ATM withdrawals depend on the limit set by your own bank + the bank's ATM you are using. Bank of Pichincha allows $600/day for foreigners and $300/day for residents. Plus they don't charge a fee. If you need that much at one time talk to your bank before you leave and make sure the limit  on your account is properly set.

Whatever you do, do not bring travellers checks.  They are impossible to cash in Ecuador, believe me Ive learned that the hard way.  I was able to withdraw as much as my US limit allowed me.  I had to make two diffrent transactions but I pulled out 1400 in one day from an ATM. Here is more insight on life on the ground in my hiliarious blog. From travellers checks to riding the bus system to buying land, it all here...

thank you

Pretty much you are going to have to go the ATM route. 

You really have 3 options.
1)  Just pay more than once a month.  For instance if your rent is $1000 a month just pay $500 on the 7th and 21st. (never try to use an ATM on the first or last day of the month, around the 15th or on a Friday.  There is usually a huge line and half the time the ATM's don't even have any money left.)
2)  Buy a small safe to store the money and visit the ATM a couple times. 
3)  Open a 2nd checking account.   The limitation on the amount you can withdraw is per account.   I'm sure you're bank would be more than happy to open a 2nd checking account for you and then you get a 2nd ATM card. 

I think I used Banco de Pacifico because they seemed to never have a long line.  Every now and again I used Pinchicha.  Both had limits over $500

My wife was telling me the other day that there is some new law that if you are going to withdraw over a certain dollar amount you can request a police officer to accompany you if you are really concerned.   Personally, I'd say just use an ATM at a mall and walk out and get a Mall taxi to where you are going to pay.  I never had any issue at all.

I've read some good tips here. I'm also moving to Cuenca in September so I guess the best way to do this is to open a checking account in Banco Pichincha or Pacifico and deposit my US chack there, wait a week or so for it to clear and if I have an emergency just withdraw from the ATM. What are you experiences with fees? Another forum member told me he never gets charged a fee when using his PNC Bank debit card at ATM's

There are lots of credit cards that have no international fees and a lot that do don't charge for Ecuador because there is no currency conversion fee.   

There are some online banks that offer no fee or reduced fee atm withdrawals from other banks ATM's.

I don't know if you can even deposit checks in an ecuadorian bank that are drawn out of a foreign country.   If you really want a bank there then I would just open an account then do a wire transfer a few times a year.  If you have never been to Ecuador before, I would advise going to a bank and having a look before you decide to move all your money there.  They are a royal pain in the A** to deal with and the lines are always massive.

I always found it far more convenient to simply keep my money in US banks and just use the ATM's when I really needed cash and try to use no fee CC's for everything that I could.

Now all this assumes you are not going to be working in Ecuador.   If you have an job for an Ecuadorian company then yes, you will most likely have to open an account.

It really interest me how people have very different experiences. I have never had an Ecuadorian bank charge me an ATM fee, but PNC charged me $5 for withdrawing $100. I called them and complained and they refunded the fee, but said, in the future, that fee would stand. This may have something to due with the type of account I have. I closed my bank account, partly because PCN has been very inconsistant with charges and fees. The are still charging me fees for the account because they said it was improperly closed and I must speak with the original branch manager to sort it out. But, that branch is closed and the manager is gone. Everyone else in the Bank says they can't help me; only the original Branch Manager has that power (Huh?) What a mess. It has been over six months and I stall can't resolve this. It will have to wait until I return to the US.

USAA, my principal bank, charges me 1% for ATM withdrawals in Ecuador. I asked about the charge since there is no currency exchange, but they said they must pay an interim agency for handling foreign exchanges and the cost is standard and is not based on the exchange but rather on cost of the service. You will get all kinds of explanations, but this is true: you can easily use an American Bank for your ATM withdrawals and not be charged more than 1%. I don't think this is possible without some fee, but if someone has been able to use an ATM in Ecuador with zero fees for both banks involved, please let me know the American Bank (or Credit Union) they are using. BTW, USAA is a Federal Savings Bank.

In the end, it has just been easier and cheaper to open and account here and keep money in the local account. Then, I can use either my US or Ecuadorian account depending on where I am buying. I will say the banks here are very professional and I have had no problems managing my account on-line. Their security is excellent and I immediately get notification if money is withdrawn from my account.

As a side note: Social Security will not deposit your check into an Ecuadorian bank and you will need to process that through an American Bank. No exceptions there.

It does seem most expats prefer to keep using USA banks and pay any fees involved.  One downside of using foreign bank accounts is the required filing of form TD F 90-22.1 if a USA citizen has a total of $10,000 in foreign banks at any time during the year.  Each bank account must be reported at its highest balance during the year.  So if you had $5,100 in a bank in the Philippines and transferred it to an Ecuadorian bank, you would be required to file the form, reporting the $5,100 in two different accounts for a total of $10,200 even though it was the same $5,100 in two different places.  Form TD F 90-22.1 must be in the hands of the US Treasury Department by June 30 of the following year.  Postmarked by June 30 is NOT GOOD ENOUGH.  In addition, there are no extensions available for this form, and the failure to file penalties are severe.

It has been by experience that beaurocrats have one job in life and that is protecting their pay check. They will foil, befuddle and screw you over and if you persist, they will hand you off to another one who will do the same.  It is the same the world over.  Ain't life grand, kiddies.

For almost a year now, I have been asking questions about Canadian credit cards and ATM cards and the only response I got was from an American, Edd Statton. While I value Edd's blogs highly, it would be good to hear a Canadian opinion. I know there are many in Cuenca who should be on here helping us out. Surely, someone gave you some helpfuly advice when you were looking.

Edd and Luna2. Should have responded earlier. Just a bit surreal to me that a trvelers check that I pay cash for in American funds here in Canada, can't be cashed in Cuenca. I do not doubt you valued opinions. Please don't missread this. Just horribly mystified about it.
   Bryan

mugtech wrote:

It does seem most expats prefer to keep using USA banks and pay any fees involved.  One downside of using foreign bank accounts is the required filing of form TD F 90-22.1 if a USA citizen has a total of $10,000 in foreign banks at any time during the year.  Each bank account must be reported at its highest balance during the year.  So if you had $5,100 in a bank in the Philippines and transferred it to an Ecuadorian bank, you would be required to file the form, reporting the $5,100 in two different accounts for a total of $10,200 even though it was the same $5,100 in two different places.

Interesting. I was not aware of this.

I keep most of my money in the US in Citibank, but transfer a few thousand at a time here to the Philippines. I don't think I've ever let the balance get over $5k, but maybe it has. In any case, when I get to Ecuador late in the year, I will be careful to keep the balance low enough that it doesn't add to $10k.

Thanks for the heads up, Mug.

Bob

Ditto,
Good info. I'm neither a finance guy, nor a tax guru. Good to have someone " in the know " out there, and willing to share the knowledge.
Again, Thanks Mug's
Neil

Welcome to Ecuador!!

stick1947 wrote:

It has been by experience that beaurocrats have one job in life and that is protecting their pay check. They will foil, befuddle and screw you over and if you persist, they will hand you off to another one who will do the same.  It is the same the world over.  Ain't life grand, kiddies.

The foreign reporting info and forms here are referred to as FBAR, but if you are familiar with Saving Private Ryan you know that FUBAR best describes the situation.

eddstaton wrote:

Welcome to Ecuador!!

If that was directed to me, Thank You Sir.
Neil

High Stick 1947

I was thinking the same thing! no offence to all you americans but us Canadians need to know info too...
Our house is up for sale and were waiting patiently for it to sell so we can leave Ontario,Canada for good. Is there anyone else from Ontario who packed up and moved to Ecuador for good?

I need to be able to withdraw more monies so I can pay the Gringo prices. I can't pay Gringo prices with just $200. I need more monies. Thanks for your understanding.

it was mentioned further up there are several banks that will let you take out 500 or 600 at a time.

I regularly get $500 per day at Banco del Austro.  They just raised the fee to $4 per transaction, but Schwab will reimburse it.  Not sure about other US bank policies regarding this...