ATM fees, bank accounts, etc

1.50 usd doesn't sound like a "ton of money"

Hi, to calculate a final exchange rate,one must consider the following :

1st, the cash exchange rate is never the one you see one internet sites such as www.xe.com but is 4% less (ie: 20 pesos for 1$USD equals 19.2 pesos).
2nd, is to know how much you are charged by your bank for an ATM withdraw (ie: my Canadian bank charges 3$).
3rd,  is to know how much you can withdraw per day, also how much the ATM allows  (ie:  my bank allows me 1200$/day and 1000$/withdraw while the mexican ATM'S are Banamex 6000$ pesos, HSBC 10000$ pesos .
4th, the mexican Banks fees are somewhat expensive also they accept only international transfert.

So, I am using my foreign bank ATM card even if I am looking to become a permanent resident of Mexico.

GyC.

joaquinx wrote:

1.50 usd doesn't sound like a "ton of money"

Hi yeah it's not a lot of money, but getting charged around $16 total for retrieving $200 is a lot. I'm not sure how much of that is foreign exchange fee and non-my bank fee, but if we are paying our rent with money from the atm it will get expensive, especially since we have to do multiple withdrawls and each one gets these big charges. I don't want to just give away money at the atm.

mexicogc wrote:

Hi, to calculate a final exchange rate,one must consider the following :

1st, the cash exchange rate is never the one you see one internet sites such as www.xe.com but is 4% less (ie: 20 pesos for 1$USD equals 19.2 pesos).
2nd, is to know how much you are charged by your bank for an ATM withdraw (ie: my Canadian bank charges 3$).
3rd,  is to know how much you can withdraw per day, also how much the ATM allows  (ie:  my bank allows me 1200$/day and 1000$/withdraw while the mexican ATM'S are Banamex 6000$ pesos, HSBC 10000$ pesos .
4th, the mexican Banks fees are somewhat expensive also they accept only international transfert.

So, I am using my foreign bank ATM card even if I am looking to become a permanent resident of Mexico.

GyC.

Hey good info thank you.

There are a number of third party money transfer agencies that will beat the ATM. Right now, XE lists the exchange rate at 19.51 while xoom will transfer money with a 4.99usd fee at 19.10. During banking hours, this takes about 2 hours from my US bank to my Mexican bank.

Hmm ok. Thanks joaquinx. That's interesting. I read that Bancomer lets you set up an account with just a tourist visa...any thoughts there?

MTinHCMC wrote:

Hmm ok. Thanks joaquinx. That's interesting. I read that Bancomer lets you set up an account with just a tourist visa...any thoughts there?

The ability to open an account with a tourist permit varies from bank to bank and from office to office. Be prepared to be refused a few time, but don't give up. You will still need to show your passport and proof of residence. Generally, the proof of residence or known as a comprobante de domicilio, is an electric bill. It doesn't have to have your name on the bill as most renters will get a bill from their landlord with the landlord's name on it.

You did not pay a fee of 16 dollars. That ATM gave you an exchange rate at 18.52 pesos.
So 216 dollars = 4000 pesos.
You just chose a bad day to withdraw money as the peso at that moment recovered a little.
Consult the exchange rate on their websites before withdrawing money.

Aah @Sotomex, that makes sense. Thank you!

Hi, just giving an update: we were able to open a Banamex basic debit account the other day. We provided ID, our tourist cards they give you on arrival, and a utility bill with our address on it (it's in our landlord's name but that didn't matter). My Spanish is terrible, so our friend came with us to translate and I think she had to kind of vouch for us but it was nothing formal (no paperwork with her name on it or anything). We went to the Banamex at Centro Maya.

I found that ofx.com (formerly usforex.com) had a better exchange rate for money transfers than Xoom.  Our accountant said there is no IVA (15% tax on all bank transactions) if we are transferring money from our US account to our own Mexican bank account. Apparently IVA is a big reason Cash is King in MX.