Planning Your Mexico Retirement Finances; Opening a Mexican Bank Account

After buying Mexico real estate, one of the most important steps in planning your Mexico retirement is arranging to have access to your funds from the U.S. while you are in Mexico.  Since there are numerous ways to access funds while in Mexico, this is usually not a complication, but careful planning will allow you to take advantage of the best exchange rates and avoid high fees.

While you can have complete access to your funds through credit or debit cards, as well as transfer companies, opening a Mexican bank account will help you manage your money more securely, so you can make direct wire transfers to this account, and also deposit any cash you may receive (e.g. cash debit withdrawals or transfers through companies like Western Union).

Choosing your bank

If you choose a Playa del Carmen real estate property, for example, you have a wide variety of modern banks with a variety of services to choose from.  These include Scotiabank, Bancomer, Banamex, Banorte, IXE and Santander.  All are international banks, except Banorte which is Mexican, and most are affiliated with banks in the U.S. and Canada. If, for some reason, you may be withdrawing cash from your Mexican account back home, it is worth choosing a bank that has an affiliated U.S. or Canadian bank, since you can make cash withdrawals from ATMs for free, only paying the current exchange rate.

Another factor to consider in the bank you choose is the line ups.  While most banks are a nightmare on   payday (the 15th and last day of every month) as well as the 2 days after, some banks tend to have less traffic (Scotiabank); Banamex also has  nice system where you take a number and sit down until your number appears on screen.  Many banks, Bancomer for example, offer “Preferred Customer” cards to international clients, meaning you can go directly to a short line only for Preferred Customers.  Lines also vary from one branch to another of the same bank.

Documentation

Generally, you will not be able to open your Mexican bank account right away. To open an account you need what’s sometimes called an “Expatriate Visa,” or officially, an FM2 or FM3 visa.  When you arrive into Mexico, they will give you an FMT (Tourist Visa).  Once you have settled into your new property, you can contact the lawyer you worked with in your real estate transaction or ask your real estate agent for a recommendation to help you apply for your FM2.  You will need your passport for I.D., and a “proof of address,” which is simply an phone, water or electricity bill, and usually doesn’t  even have to have your name.  In the meantime you will need to rely on credit purchases and debit withdrawals.

Services  & Security

Mexican banks have been heavily modernized and offer a variety of account types, packages and services.  International credit cards and online banking are standard features to offer at the time of opening an account.  As with most offices in Mexico, you might have some run-ins with annoying bureaucracy, but  patience, and simple mental preparation for the fact that this could happen, can help you overcome get through these annoyances without any real complication.

Since Mexican banks have become fairly modern, retirees can feel confident in the security of their funds.  Some commentators have pointed out that unlike U.S. banks, Mexican banks required no bailouts during the recession.

On the whole, opening a Mexican bank account is not terribly difficult, and Mexican banks have become convenient and easy to use, and having one will make your retirement in Mexico more convenient.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

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