Accessing Money from US

mejms wrote:

Moving from Boston to Queretaro in about a month and will continue to have income deposited into my US bank account.  Would love to hear how people access their money. 

I will likely open a bank account in Mexico but am unsure whether I will transfer a big chunk of money from my US account into my Mexican bank account or will just withdraw from my US account via ATM and use my US debit card.

I would suggest that you use the second option. Moving money from the U.S. to another country gets a lot of attention from people like the IRS. I keep it simple by leaving the money in my U.S. account, informing my bank that I will be using my debit card in a foreign country, and keeping it simple. You can open a Mexican Bank account and keep the deposit under the automatic trigger point, which still seems to be 10,000 U.S. This system has worked very well for me., There are Mexican banks with U.S. affiliations although not as many as there used to be. It's easy to run a computer search on which Mexican banks have U.S. connections.https://corporatefinanceinstitute.com/resources/careers/companies/top-banks-in-mexico/

We haven't moved yet, but I have been researching this subject.  I am thinking of using my USA bank that reimburses for ATM fees at other banks.  Then I will only take out Pesos in larger amounts fewer times to minimize foreign transaction fees.  I will explore opening a MX bank account.  I looked at opening an account with a USA bank that is MXN based, but haven't seen an advantage yet.  I need to go in to a local branch and ask some hard questions.

Withdrawing bit by bit as needed from US account makes sense.  No reason to transfer larger funds. 

As for Mexican banks with US connections, I'm not sure this really exists.  I have a US Santander bank account and there is no connection with Mexican Santander.  There is actually less of a fee to withdraw from my TD bank account at a Mexican Santander ATM than to withdraw from my US Santander account.  No advantage to having a Mexican Santander account and US Santander account as far as I know.  If you know of a bank that does offer advantages, please let me know.

I'll need to look into how to have some more money available when first getting settled in.  Month to month living will be fine via ATM withdrawals, but won't be practical when first arriving (buying car, starting lease, school for kids).

Any recommendations on banks and credit cards?

I have a few US credit cards, all of which charge a foreign transaction fee.  My TD bank debit card does not charge a transaction fee.  Debating using it vs applying for another US credit card with no transaction fee vs applying for a credit card in Mexico.

I heard Schwab was good.

I have been using my Schwab debit card to draw money from ATMs in Mexico.  Schwab makes it easy to open an account online and they reimburse all atm and foreign transaction fees and give a very good exchange rate.  I also have a Mexican bank account which I transferred money into using Remitly (but always keep it below the $10,000 US level so as not to have to file the extra tax form).  Although Mexico is mostly a cash society, I also have a credit card through Barclays bank, they also do not charge any foreign transaction fees and are very good with their exchange rate.

i am retired on social security. the government issued me a DIRECT EXPRESS CARD which is good all over the world. so if u have a us.bank card, u can use it to access atm machines here. far as i know, us bank not here. but citibank is. its called citibancomer. u can open an account here and close out your usbank acct.

mastercard, discover, visa and citibANK CARDS  ALL RECOGNIZED HERE

Anyone tried using a Citigold account with a Citibanamex account?  Supposedly there are no currency exchange fees with a Citigold account.

Do you advise your bank in the US that you are living in another country?  What is their response. I have heard of people having their accounts frozen when the US bank figured out they lived in Mexico. Some of those affected said they had to fly back to the US to get the problem fixed. Pretty scary stuff.

We have not moved permanently, only for the winter. We told our credit union and our credit card companies, so they wouldn't flag charges as problems. Regularly use our atm cards in Mexican cash machines to withdraw funds from our credit union without problems.

Six months at a time is no problem. It's if you stay outside of the country for more than six months that things get sketchy with USBanks. I have never had trouble when visiting but am preparing to move to Mexico in 2020

LaloSMA wrote:

Do you advise your bank in the US that you are living in another country?  What is their response. I have heard of people having their accounts frozen when the US bank figured out they lived in Mexico. Some of those affected said they had to fly back to the US to get the problem fixed. Pretty scary stuff.

This is why I recently decided to open a bank that is strictly online.  Went with Ally.  I figure that if there is an issue with me being out of the country for an extended period of time, they won't be able to tell me that I have to visit a branch (since they don't have branches at all).  They did say that travel advisories can only be issued for 6 month periods, so we'll see what happens.

Yes, La lo SMA,

that is pretty much the effective way to do it. I would add be consistent. I have a consistent pattern. I limit the banks that I use my debit card in. Actually, I tend to use only one bank. My bank and my cards know what to expect. At first, they would block the use after a few months, then I called them. After a while, they just watched my pattern. Now I have no problem. I am also limiting risk by using the credit card for only hotels or major purchases in my city.

I think that my solution will be to use Ally Banking (online bank), transfer US income to Mexican bank account via Transferwise (best rate, transparency), and use Mexican credit card and cash for living expenses.

I've heard a number of comments over the past few months giving Transferwise a very good grade.  Anyone else used them?  I heard their fees are less than just about anywhere and it's easy to use and very reliable.  Are there some confirmations out there that agree with this?  Is Transferwise something to seriously consider?

We have had a Schwab One Account for years we opened while living in the U.S. When we retired to Mexico we stayed with Schwab after converting our Schwab One Account to international client status. For normal peso cash transactions up to $1,000USD per day, we use various bank ATMs. We also have a couple of Mexican bank savings accounts. When we need large sums as when we purchased a home or a car in Mexico, we wired  those large sums to one of our Mexican bank accounts and purchased peso denominated Mexican bank cashier's checks to affect rhe transactions. Schwab reimburses us for all ATM fees charged by Mexican and French banks where we utilize ATMs when  visiting there which we do on occasion as one of us is French. If I could give one piece of advice to those contemplating moving from the U.S. to Mexico it would be to open your U.S.bank account while still resident in the U.S. and, if possible, open the account in a U.S. bank or other financial institution with an international orientation as small, locally oriented U.S. banks might prove inadequate to service international accounts.

Excellent info Bubba. I have a Schwab brokerage and checking account that I recently opened. I took the paperwork for International status but will not act upon it until closer to moving. I was hoping to use these accounts INSTEAD of Mexican bank accounts by utilizing ATM's. I don't intend to buy real estate, at least initially until I am sure SMA is the place for me. If not, i will be a Bedouin u til i do find my place. One thing I noticed is the Schwab international brokerage account requires a minimum balance of 25 K. That's not a problem because my reserve will be much higher. But if a few major medical emergencies occur or a real estate purchase becomes a reality it may be a problem. . I will have a catastrophic health insurance policy with a 10 k deductible so I can weather a few storms if not too major. I will also have basic US Medicare if I am healthy and ambulatory enough to return to “El Norte”. Can you comment on any health insurance or emergency planning considerations that have worked for you?  Also is my understanding of a minimum balance for international brokerage at Schwab accurate?  Muchas gracias y buena suerte

Our  international health insurance is with AXA with unlimited international  medical coverage after we cover the $30,000 Peso deductible. We, like you intend , cover minor health related costs, which are quite reasonable in Mexico,  out of pocket and the insurance is to protect us from any catastrophic health events that could break us. An important feature of  the AXA policy is that coverage cannot be cancelled as we grow older. That's very important.. when we took out the policy I was 59 and my wife was 54.  No physical examination required. I am now 77 and she is 72. Thank God we took out the policy before we turned 70.  While Mexico has two socialized medical coverage plans available to expats, (IMSS and Seguro Popular) my advice is that anyone who can afford private health insurance should pay the price for that.  That could make the difference between interminable waits in often primitive facilities waiting for a physician when one is in dire straits healthwise.Keep in mind that, while your policy, if it is non-cancellable cannot be cancelled but premiums will go up annually as one ages. I pay a much higher premium at 77 than I did at 59 but, believe me, it is worth it. We have an indigenous friend here in  San Cristobal who is as poor as a churchmouse and, when her kid busted his head in a fall and needed emergency help, she went through hell using the Seguro Popularhospital to have him treated. If you can avoid this, do so.

Thank you for the excellent information. It is very consistent with the other info that people have shared with me in person when traveling in Mexico. Especially the notion of buying as early as possible and financing basic care on a cash basis.

I live in Queretaro.

I opened a Schwab savings account with just $10,000 U.S. I use ATMs here to withdraw funds -
Schwab allows me to make 6 withdrawals a month so the more cash I can take out each time, the better.

Mexican banks have different limits on how much you can withdraw at a time. I have found that HSBC allows the most cash at a time, $15,000 MX.

I use U.S. credit cards for all restaurants, groceries, Costco, Home Depot, etc. so I only need cash to pay my rent and buy small items from small vendors. My cards are B of A and Citi. There  have no foreign transaction fees. I keep a U.S. address (my daughter's) where I get the few pieces of mail that I cannot change to electronic delivery and she emails me letting me know if I need to take care of anything.

Bonnie,

Did you say you have a Bank Of America credit card and they don't charge foreign transaction fees?

I'm got an Alaska Airlines BA card and would love to keep it, but I thought they charged fees for that.  Not certain.  Your thoughts?  Would love to keep that card, because of the free miles. 

Walter Hodges

I have avoided using credit cards at restaurants because i believed some charge service fee on credit cards and may not give fair exchange rates. I might be wrong. Does anyone here know if this is the case?

Great question.  There may not be fees from the bank, but the exchange rate....  That's a question as well.

James, you said the financial institution reimburses you the ATM fees.  If that's Fidelity -- and sorry people, I have to spell out the name here -- you're in trouble.  They blocked our ATM card when we were in Mexico.  I called, they un-blocked it, 2 days later it was blocked again, and that's how it went for the whole 10 days.  Last November we took a cruise to Cuba, and while we were still in US waters just off the coast of Key West, we tried to withdraw money from the ship's ATM - nothing.  Called Fidelity who somehow KNEW that we were on a ship to Cuba.  They did not budge, did not give us one bloody penny in cash.  I had to have my sister in the US send a wire transfer to the ship.  Yes, I know that Cuba is a patria non grata in the current US political situation, but we were not even IN Cuba.  This kind of "Big Brother" thing makes me cringe.  The explanation they gave us for Mexico was that they "assumed" the debit card was stolen, and that Mexico was on another country on their "hit-list".  This was last year, in the same year that we traveled to Canada, Paris, and Berlin and never had the first bit of trouble with Fidelity.  But they take their Cuba-thing seriously, Mexico semi-seriously.  I closed the accounts with Fidelity, I had been with them almost 30 years.  Before we return to SMA this summer, I will notify my little bank here in Houston, they have more understanding than big Fidelity.
With Southwest flying daily to Cuba now, how will the banks do that?  Will they block the accounts of everybody on every plane?  Insanity!
There was no problem with AmEx, they figured out we're traveling a lot.  AmEx charges the merchants higher transaction fees than VISA or MC, that's why a lot of small merchants won't accept it.

AmEx charges a foreign exchange fee every single time.

I don't use Fidelity.  I use USAA and SCHWAB who reimburse for ATM fees.  I heard Ally does also.  I have a CU account also that uses co-op ATM's and they don't charge fees at all.  I haven't looked to see if the co-op network is in Mexico I guess I should.

Whichever one you use:  tell them ahead of time that you're going to Mexico, and that it's not one of those robbers and murderers that stole your credit card.  It's a royal pain to get stuck in a foreign country without cash.

jamesr3939 wrote:

I don't use Fidelity.  I use USAA and SCHWAB who reimburse for ATM fees.  I heard Ally does also.  I have a CU account also that uses co-op ATM's and they don't charge fees at all.  I haven't looked to see if the co-op network is in Mexico I guess I should.

Ally reimburses up to $10 per month of US ATM fees, but none abroad.

WalterHodges wrote:

I've heard a number of comments over the past few months giving Transferwise a very good grade.  Anyone else used them?  I heard their fees are less than just about anywhere and it's easy to use and very reliable.  Are there some confirmations out there that agree with this?  Is Transferwise something to seriously consider?

They offer the exchange rates that are publicly posted, the rate that you see when you Google USD Mexico exchange rate.  They then charge their fees.  You can go to their website without even logging in and see exactly how much the transfer would get you and cost you

No other service or bank does this.  I appreciate that transparency and it does add up to more dollars in your pocket.

Haven't used it yet, but will soon.

I would say keep you card that you have had for mileage for when your in the states....apply for a Bank America card that charges no international fee....we have one...it works well..never an International fee...and you get the current rate of exchange...being it does change daily....

Lake1buffalo1 wrote:

I would say keep you card that you have had for mileage for when your in the states....apply for a Bank America card that charges no international fee....we have one...it works well..never an International fee...and you get the current rate of exchange...being it does change daily....

You get the current rate of exchange?  I doubt that the bank is giving the mid-market rate that you would find if you searched on Google.  Banks, PayPal, Xoom, etc all make money factored into the currency conversion that they offer.  There might not be a foreign transaction fee, but they're making money off of your international purchases through that exchange rate.

Okay, this is leading to a good point.  Exchange rates.  I called the credit card company yesterday (Bank of America Alaska Airlines Visa) and tried to find a place where I could go to get today's exchange rate.  They did not answer the question well enough.  Very shaky ground here.  I think we're correct to look for cards that don't charge for foreign transaction, and they are easy to find (BA Visa does not charge),
but they turn into the perfect political animal when it comes to describing the formulas for exchange rates.  That's where the real money is located and they don't promote it or make it easy to find.  Still searching today.  I'll report back.

I have an app on my tablet called Currency Converter that is supposed to give the exchange rate in near real time. When I've used my credit card in Puerto Vallarta at Costco and large markets like Mega and La Comer it has always looked close to what the app says.  It says it's 19.15 pesos to the dollar right now.   I have not used my CC at restaurants. I'll use it sometime just to check it out. (Many of the restaurants here don't accept them. )

Yep, you can just Google the exchange rate and it is 19.15 MN to the US dollar right now.

You won't find a bank or other financial institution that will offer you that though.  That's why I opted for Transferwise.  It's the only one that does as far as I've seen.

Please do come back.  It makes sense that they have to make their money somewhere.

I just checked my US bank Wells Fargo for transfers to Mexico.  To transfer $1000 USD the fee is $5 and the exchange rate is 18.93 to the dollar.  At the current exchange rate that's about a $10 loss for the exchange.  WF will either do direct account to account transfers to Bancomer, Banorte1, and Banco Santander or cash pick up at Bansefi,
Grupo FAMSA, Soriana- Comercial Mexicana, Telecomm Telégrafos, Farmacias Guadalajara, Bodega Aurrera, Walmart, Suburbia, and Superama.