Auto deposits to Mexican banks

I am pasting information from another blog - Two Expats Living in Mexico.  GREAT INFORMATION THERE.

If you’re planning on calling Mexico home, you might want to think about opening a bank account here – just to make your life a little bit easier.

I’m not saying that you should close your account back home, I’m just recommending that you open a Mexican account that you keep a small amount of money in.

There are numerous benefits to having a Mexican bank account, here are a few of the ones that top the list:

1) No fees for ATM withdrawals

2) Easily transfer money from your bank account bank home

Anytime you need funds added to your Mexican account, you can accomplish this electronically without ever having to go to the bank.

This is safer than wiring yourself a large amount of money and having to physically pick it up.

3) Pay for goods and services in Mexico with bank transfers

This is extremely common here in Mexico — especially with larger transactions.

Many small businesses don’t take credit cards. When we had a screen enclosure put up around the patio, we were given two payment choices: cash or bank transfer.

4) Easily obtain a replacement ATM card in case of fraud

By keeping an account back home at the same time, a Mexican account will provide a buffer of protection between the bulk of your assets and fraud.

If you’re using a debit card from home, any theft or fraud will affect that account directly. Even though your funds will be returned to the account later, that only occurs after completing fraud affidavits and there is often a substantial delay. In that period of time, you may have had checks bounce without your knowledge and that may take weeks to resolve with the individual businesses affected.

I was a law enforcement officer for 25 years and I’ve seen debit card fraud in the U.S. cause the problems explained in the last paragraph. That’s why I prefer to have the buffer of a Mexican account while conducting business here.

Requirements
The requirements to obtain a bank account in Mexico are pretty much the same no matter which bank you choose. They are also similar to the requirements to open an account in the United States, with one exception – the immigration status requirement.

Don’t worry, I’ve dedicated an entire section to covering that one. For now, let’s just cover the basic requirements:

1) Official identification (a valid passport works for this one)

2) Proof of address in Mexico (utility bill, property tax receipt)

3) Minimum deposit (this varies but it’s usually around $1,500 pesos or about $75 USD)

Immigration Status
Before we had our temporary resident cards, we tried – and failed – to open a bank account at several different locations. Every bank employee that we spoke to was very adamant that we have at least a temporary or permanent resident visa (formally FM2 and FM3) in order to open an account.

Since a lot of the expats that we know only have tourist visas, I wanted to see if this was still the case, I contacted five of the major banks in Mexico to ask if they would allow me to open an account with just a tourist visa (FMM).

It was an adventure – to say the least – and I frustrated more than one customer service representative when I asked them for a simple yes or no answer to this question.

Here are the results:

Banorte

Tourist visa (no)

Bancomer

Tourist visa (no)

Santander México

Tourist visa (no)

HSBC México

Tourist visa (yes)

HSBC was the bank to specify that they would accept the “forma migratoria múltiple”, which is the FMM or tourist visa.

Of course, this doesn’t mean that you will actually be able to do it when you go to the bank. We had previously gone to an HSBC branch and they told us no.

Scotiabank México

Tourist visa (maybe)

The customer service representative told me that I would have to have an immigration document proving legal presence. When I asked if the FMM or tourist visa would suffice, she merely repeated the vague requirement. When I asked for some clarification or a list of documents that would meet the requirement, she directed me to visit the nearest branch.

By the way, there were significant pauses in our conversation which led me to believe that she was asking her coworkers and they didn’t know either.

My advice is to go to the branch and just ask — you might get lucky.

Let’s Wrap This Up
It’s very beneficial to have a bank account in Mexico; however, that doesn’t mean that you should close your account back home. I recommend that people keep the bulk of their assets in their accounts in their home country and to merely transfer small amounts of money to their Mexican account as needed.

"Easily transfer money from your bank account bank home" no where is it as easy as that.  I did it 2 times because I had to, but neither was easy.
Yes you should be at least a temporary citizen. FMM isn't used any longer  so it is visitor temporary, and permanent.

Having a Mexican account also, is helpful as a backup, but be careful about the amount you have in that account for tax ramifications in the U.S. Also remember if that account in Mexico earns interest, it would be Money earned in Mexico which opens the door to Mexican taxes.

So you have to watch that your Mexican account does not exceed $10, 000 U.S. or you wave the money laundering flag in the U.S.. Mexico really gets jumpy about U.S. money so they don't just open their arms about it. It increases their work load, and paperwork. I just put a couple of mil in pesos in the account now and then. Seems to make them happy. The small exchange rate on a ATM charge once every couple of months is not a big deal.

I'm confused about transferring funds from US to Mexican bank account...does this mean it's easy and quick?
Also, they say 'collateral' to rent a house or apartment..what does that mean if we are just moving there?
And when renting, coming in as retiree, how long should the process take to complete?
Another question is how hard is it to rent a car for the trip from Texas to Merida?  We don't want to fly our dog, so we've decided between the dog and airline costs to just drive.  A great way to get to know the country

It is not easy to transfer funds from USA bank to Mexican bank.  But there are ways.

You can also get money from your usa bank and deposit it into your mexican bank (physically).  Note, the $10k limit per transaction. Where ever possible pay in pesos.  Draw down your mexican account and when it needs more funds, again, physically deposit. Sounds like this may be easier for some.

I do not know what you mean by collateral to rent a place.  Renting is usually easy.  You could do craigslist or vrbo.

Renting a car is easy.  Its the mexican auto insurance you need to have in place before you leave.

Not finding a rental...the act of renting itself
They all say collateral
Not renting a car in the US...how difficult is it to rent a car in Mexico and drive all the way to Merida...
How difficult is it to actually transfer funds from the US bank account to the Mexican bank account....also how hard is it to access the US funds...
Unfortunately, all you did was repeat my questions back in a different form...I'm looking for some to actually pass on their experience on these issues

Jasmine1955 wrote:

I'm confused about transferring funds from US to Mexican bank account...does this mean it's easy and quick?
Also, they say 'collateral' to rent a house or apartment..what does that mean if we are just moving there?
And when renting, coming in as retiree, how long should the process take to complete?
Another question is how hard is it to rent a car for the trip from Texas to Merida?  We don't want to fly our dog, so we've decided between the dog and airline costs to just drive.  A great way to get to know the country

I don't transfer money from the U.S. to Mexico because I had to do it twice and it was a time consuming pain . Many banks were set up in the U.S for easy transfers, but more and more it has become more expensive for them to continue, so my bank for one stopped doing so.

Which means it can be done but it is expensive and paper heavy. MY Mexican bank would have been happy to take my automatic deposits, but that would be more than enough to trigger  U.S. interest in my account which would led to more paper and possible tax issues.. I find it is cheaper to just put money in my mexican bank by using a percentage of the money I got out using the ATM. Trust me the transaction fee( about 2.00) is cheaper than one of those transfer fees( $40 -50 ). Of course if your bank has a branch in Mexico that might be different.B of A and Citi have affiliated Mexican banks check with them.

Who are " they"? You have to show you can afford the house ( with dogs it would have to be a house, Unless the dog is a little dog then you could do an apartment) . You have to have first, probably last, and a deposit. It depends on the house owner. I would talk to a real estate agent in your area of interest.

You would have to talk to Texas about the car, because that is where you would be renting it.

There are many car rental agencies in Mexico. That we can see.  As I first stated, the intent is to rent a car at Mexico border... making it a Mexican rental...one that will not be returned to rental location but rather in Merida....or possibly buy a fairly new car as soon as we enter Mexico?  We will have to soon any way... maybe that would be a better route?


If you look at any rental ad for houses/apartment they all, repeat all, say collateral or cosigner. 
We would have neither....just a bank account

The banking answers were confusing in that I keep seeing transfer funds, or I see physically take it out ( which would be logistically impossible)

Our social security checks need a place to go...and we need constant access to them. Therefore I am looking for clear answers on what others do

Thanks

Jasmine1955 wrote:

Not finding a rental...the act of renting itself
They all say collateral
Not renting a car in the US...how difficult is it to rent a car in Mexico and drive all the way to Merida...
How difficult is it to actually transfer funds from the US bank account to the Mexican bank account....also how hard is it to access the US funds...
Unfortunately, all you did was repeat my questions back in a different form...I'm looking for some to actually pass on their experience on these issues

By collateral they likely mean  what we call a deposit.

So if you are "driving from texas" would you try to cross the border with a  rental car from Mexico then drive from Texas to Mexico crossing the border again ? "how hard is it to rent a car for the trip from Texas to Merida"
I would think taking a bus from Texas to the border then picking up your pre arranged rental when you cross the border would be a good plan. You can arrange rentals on line with most major companies.

Your best plan would be to fly to Merida. Is the dog a very old dog?

"Unfortunately, all you did was repeat my questions back in a different form...I'm looking for some to actually pass on their experience on these issues" Is a very rude dismissive statement .

Perhaps you need to reread what you said and what I said. I passed on information from experience, lots of information. Are you using reading glasses ? perhaps you were reading what you wrote and thinking it was what I wrote.

Actually, I was thinking that the answers I got were so general that it felt a waste of time asking the questions.
I really had hoped for specific answers.  I really tried to be specific in my questions.
As far as the rental car, I did mean that at the border of Texas/ Mexico I wanted to know the feasibility of renting a car on the Mex ico side and what to expect.

I thought I was clear not only about cost savings by driving, but also had concerns about our dog being flown.
In the US the dogs are dying on the flights, let alone the costs.  Our dog is our child, as with many other pet parents.

Any way, I do find it hard to get specific answers to my questions here.  I had hoped it would be easier.
I realize we all depend on another's generosity here...I'm not out to waste anyone's time or energy.
Thanks anyway

We too are considering driving down from AZ thru Texas to San Miguel de Allende with one car and our dog. (We have heard numerous horror stories of cargo ing dogs on the aircraft.) Which is the reputed safest route and do we need to secure Mexican auto insurance prior to crossing the border? Our existing insurance covers us in Mexico as tourists but I believe Mexico requires in-country insurance.

We we're going to keep my 2008 pickup and drive with it but we will just miss the criteria for importing our vehicle...it has to be between a few years and 10 years old.... heartbroken

I do know for the dog we have to have a vet statement or something less than 10 days old to take her across border

We have the same question about if our social security can be direct deposited to the Mexican bank account...and if not, can we transfer online?
Curious as to the transfer rates I've seen mentioned...

For several years now, I've had my social security deposited directly to my Mexican bank account (Santander). I have had no problem, but in order to set it up I had to register my Mexican address. As I recall, I also had to stop by the embassy in Mexico City. It wasn't easy, but the result was satisfying. I get the current exchange rate and don't have to pay fees of any kind.

Keep your Canadian or us bank that checks get deposited to.Opem a Mexican bank in mexico that is close and convenient for you. Open a PayPal account and attach both accounts to your PayPal. You will be able to move cash from your foreign to your PayPal account .when ever you need Mexican pesos you can move the cash to your Mexican bank. All these transactions within PayPal are free of charges. You can also get a PayPal credit card that you will be able to use in mexico . You can check the activity of credit card make payments from your foreign account to the card at no cost..also PayPal gives the best exchange rate and they don't charge a transaction fee every time you use the cad.  You can check this out on their sight

This is great info. Thanks A LOT!!!

patrick minott wrote:

Keep your Canadian or us bank that checks get deposited to.Opem a Mexican bank in mexico that is close and convenient for you. Open a PayPal account and attach both accounts to your PayPal. You will be able to move cash from your foreign to your PayPal account .when ever you need Mexican pesos you can move the cash to your Mexican bank. All these transactions within PayPal are free of charges. You can also get a PayPal credit card that you will be able to use in mexico . You can check the activity of credit card make payments from your foreign account to the card at no cost..also PayPal gives the best exchange rate and they don't charge a transaction fee every time you use the cad.  You can check this out on their sight

That's up to you , but I wouldn't do that.  I have found paypal to be very unreliable, and if you buy an item using them, and don't pay it off immediately the interest rate is 20%. The fewer little banks or credit companies the better. I don't mix them, the more mixing you do the more it looks to the IRS as if you have money exceeding 10,000 in Mexico.  Plus I don't know why anyone would give paypal access to their banks.

I keep it simple so there is never over 10,000 U.S. in a bank in Mexico that has me a a signer. My money is primarily in the U.S. and I move it as needed to Mexico. As for Paypal I wouldn't even give them my U.S. zip code.

I use PayPal heavily. I don't use their credit card.
I have to say, PayPal has made my life easier. I can transfer money easily from them to my two bank accounts immediately.
I also use PayPal for most of my online purchases.  A lot less chance of fraud on my debit accounts.
Years ago, PayPal had some Rocky times but they've made me a total fan
And it's easy for anyone with a bank account to pay me thru PayPal

Yes we will check that out. Great intel.

Well I must just be a lucky man so far I have not had any bad experience with paypal.The entire credit card busniess is plaged with fraud.I would never suggest linking all ypur bank accounts to paypal only one mexican account and one us or canadian account soly for the use of moving funds easily to and from mexico. I would not consider leaving large sums of cash in any of these accounts only what you need at the time to pay your bills and the cash you want to transfur that day. International wire transfers from a us bank now cost $150:00 us . Mexico and USA have the same tax requirements for large cash deposits and withdrals. Mexico is $100,000.00 mx and us is $10,000.00  . as for late payments all credit cards charge crazy fees. There is no reson to be late with paypal because you can set up a automatic minimum payment so if you forget to pay it does it for you. I pay off my ballance to "0" every month. I am just saying what works for me Good Luck