Jump to content
Chapala.com Webboard

DIRECT DEPOSIT OF SS CHECK INTO MX BANK ACCT


jeffie1

Recommended Posts

Hello fellow expats:

I noticed on the SS Website, that it is possible to have your monthly benefits check direct deposited into a Mexican Bank Account. It seems like a real option to paying the monthly costs associated with using ATM's to get your money down to you.

We have an account with Bancomer, that only requires a 4000 peso balance to avoid monthly fees. If I had my SS check deposited into this account (keeping my US savings in my US Bank) I would only be risking that amount in case of implosion of the USDMXN currency. 

Anybody on this forum doing this? Any advice and comments would be appreciated.

I appreciate your time, Jeff

Link to comment
Share on other sites

I've been doing this for about a year, also using Bancomer.  No problems at all.

Do a search on this forum; I wrote several accurate posts recently describing the step-by-step to change your SSA deposit from your USA bank to your Mexican bank.  

Link to comment
Share on other sites

If you have your SS put into a MEX account, all of it will be converted from USD to pesos at that day's exchange rate.  According to XE.com, over the last 30 days that exchange rate has ranged, as follows:

7 Jul 2019 18:00 UTC - 6 Aug 2019 18:30 UTC

USD/MXN Low:18.89713      High:19.72059

Given that the average SS check is $1,461, a married couple depositing both their checks into a MEX account at the past 30 day low would result in 55,226 pesos.  Deposited at the 30 day high exchange rate would result in 57,622.   A difference of 2,396 pesos.  While no one ever hits the exact high or low, exchange rates are not static and can be volatile. 

Better to have US pension checks deposited into a US account so that you can determine the best time to make withdrawals, taking advantage of better exchange days.  We have never seen the need for a MEX bank account and we have owned 2 homes here to which we made substantial improvements.  We use a fee free card (Schwab) that refunds the local bank fees as well, not just in MEX but world-wide.   

  • Like 4
Link to comment
Share on other sites

9 hours ago, Bisbee Gal said:

If you have your SS put into a MEX account, all of it will be converted from USD to pesos at that day's exchange rate.  According to XE.com, over the last 30 days that exchange rate has ranged, as follows:

7 Jul 2019 18:00 UTC - 6 Aug 2019 18:30 UTC

USD/MXN Low:18.89713      High:19.72059

Given that the average SS check is $1,461, a married couple depositing both their checks into a MEX account at the past 30 day low would result in 55,226 pesos.  Deposited at the 30 day high exchange rate would result in 57,622.   A difference of 2,396 pesos.  While no one ever hits the exact high or low, exchange rates are not static and can be volatile. 

Better to have US pension checks deposited into a US account so that you can determine the best time to make withdrawals, taking advantage of better exchange days.  We have never seen the need for a MEX bank account and we have owned 2 homes here to which we made substantial improvements.  We use a fee free card (Schwab) that refunds the local bank fees as well, not just in MEX but world-wide.   

The exchange rate used to make your deposit in Mexico is the bank rate offered by Bank of Mexico (Banxico), not the rate available to the consumer.  The bank rate is consistently higher than the standard consumer rate.  

  • Like 1
  • Thanks 1
Link to comment
Share on other sites

The issue is the fluctuation of the exchange rate and the lack of control over the date of conversion when USD pensions are automatically deposited on a date set by the payor.  I prefer to buy pesos when the rate is more favorable.  

Then there's the issue of FBAR filings for US citizens should your balance go above $10K, as well as protection of monies in MX banks as in this most recent scam: https://www.internationalinvestment.net/news/4002405/american-expats-life-savings-disappear-mexican-bank-accounts-forex-fraud-scandal

  • Like 1
Link to comment
Share on other sites

I am with Bisbee. More protections for my money in the US vs zero protections for money in Mexican banks. Getting pesos via ATM's is seamless and near zero cost (Schwab). There also have been 2 major peso devaluations, one in the early 80's and another in the mid-90's where peoples money in Mexican financial firms went to ZERO. Most if not all monied Mexican's put their money in real estate or in the US. 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...