Sunday, October 29, 2017

Ex-Pats In Mexico and Money

living.boondockingmexico@yahoo.com

I just want to make it clear that when I talk about ex-pats, the comments are not about people who rv in Mexico or spend six months a year here.  An ex-pat has temporary or permanent residency. 

I read quite a few forums and blogs about ex-pats who live in Mexico.  One thing that always seems to come up is money. 

How do I get money transferred to Mexico?  
How can I pay my bills?  
Why do I get charged so much at the ATM for withdrawals?

The best way is to stop thinking like an American or a Canadian.   Why are you taking large sums of money out of an ATM to pay rent, groceries, gas, etc?   If you are a temporary/permanent resident you can have a Mexican bank account.   With a Mexican debit card you can do all of the above and it beats withdrawing money from an ATM two or three times a month which is expensive and not very savvy in terms of safety.

Also, with a Mexican bank account, you can also apply for a Mexican credit card.  Interest rates are extremely high, up to 35%.  However, in case your foreign card is declined and you are out to dinner, you can do charge the bill to your Mexican card and then pay before the month is over without interest.  Simple.

With a Mexican debit card you can pay at any supermarket, retail outlet, gas station, and the list goes on.  I've never had an issue with debit cards and fraud.  Credit cards, just once and it wasn't in Mexico as you may recall last month.  

My online bank account allows me to pay everything from home, utilities, groceries, cable tv, newspaper and grocery delivery, car, home and health insurance, even your school tuition. No need to take out cash or use gasoline to run around paying bills.  There is no commission charges in doing so either.  You can even set up monthly direct pay from your Mexican account for all of the above.

So, if you think that you can only pay by cash from your foreign bank account, think again.  Your social security checks can be deposited directly into a Mexican bank account as well.  Make life simple and forget all the myths and horror stories. You'll find that Mexico could even be one step more advanced than its neighbors to the north.


3 comments:

  1. Well said, and it certainly makes a lot of sense!

    www.travelwithkevinandruth.com

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  2. Do the Mexican banks still charge the 3 percent IDE tax (cash deposit tax) on the sum of monthly cash deposits in a client's bank account above 15,000 pesos? Beach has four retirement funds and I have three retirement funds automatically deposited to our US checking account; could those seven monthly deposits be rerouted to a Mexican bank account without paying the "cash deposit tax?" Also, do Mexican banks provide guaranteed replacement of funds due to fraud in the account?

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  3. I have found that the exchange rate on ATM withdrawals is the absolute best available. You get something very close to the interbank rate, and that's impossible with any other form of buying the currency. Based on posts by other bloggers, I believe the Mexican banks charge among the worst fees to convert to pesos. So if you had your Social Security deposited to a Mexican bank, you could easily expect a monthly rape on the rate. Credit cards are a close second in terms of good FX, especially if you get a card marketed to overseas travelers.

    While living in CDMX, I always paid my rent in cash and my landlord appreciated it.

    Saludos,

    Kim G
    Redding, CA
    Where we miss the colorful Mexican money.

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