dennis clark Posted August 26, 2019 Report Share Posted August 26, 2019 Do you have to pay Mexico income tax on interest received on a 90 day cd ? Quote Link to comment Share on other sites More sharing options...
John Shrall Posted August 26, 2019 Report Share Posted August 26, 2019 Yes, but the banks withhold the I.S.R when interest is paid. No filing is required. Quote Link to comment Share on other sites More sharing options...
chapalence Posted August 26, 2019 Report Share Posted August 26, 2019 2 hours ago, dennis clark said: Do you have to pay Mexico income tax on interest received on a 90 day cd ? May I ask what institution you feel comfortable investing with? What is the rate of return? Quote Link to comment Share on other sites More sharing options...
pappysmarket Posted August 26, 2019 Report Share Posted August 26, 2019 2 minutes ago, chapalence said: May I ask what institution you feel comfortable investing with? What is the rate of return? Google Mexican cetes to get a primer on the subject. Quote Link to comment Share on other sites More sharing options...
John Shrall Posted August 26, 2019 Report Share Posted August 26, 2019 Cetes are a good option available through Multiva and Cetes Direct online. Possibly others. You can set up automatic rollover of 28 or 90 day instruments. Current rates are close to 8%. https://www.banxico.org.mx/tipcamb/main.do?page=tas&idioma=sp Actinver offers CDs with rates that fluctuate but they never could seem to get the automatic rollover working properly. Once a 90 day CD matured it was supposed to rollover to a new one at the current rate but more often than not the CD matured and then sat there earning nothing. Multiva has several fixed income options. I've had one for the last couple of years that averaged over 9% but should Mexico start to drop interest rates as predicted, future returns could be lower. Quote Link to comment Share on other sites More sharing options...
dennis clark Posted August 26, 2019 Author Report Share Posted August 26, 2019 1 hour ago, chapalence said: May I ask what institution you feel comfortable investing with? What is the rate of return? 1 hour ago, chapalence said: Multiva 7.8 /year 1 Quote Link to comment Share on other sites More sharing options...
dennis clark Posted August 26, 2019 Author Report Share Posted August 26, 2019 3 hours ago, John Shrall said: Yes, but the banks withhold the I.S.R when interest is paid. No filing is required. John , any idea on what the ISR would be on a 7.8%cd. ? Quote Link to comment Share on other sites More sharing options...
lakeside7 Posted August 27, 2019 Report Share Posted August 27, 2019 4 hours ago, John Shrall said: Cetes are a good option available through Multiva and Cetes Direct online. Possibly others. You can set up automatic rollover of 28 or 90 day instruments. Current rates are close to 8%. https://www.banxico.org.mx/tipcamb/main.do?page=tas&idioma=sp Actinver offers CDs with rates that fluctuate but they never could seem to get the automatic rollover working properly. Once a 90 day CD matured it was supposed to rollover to a new one at the current rate but more often than not the CD matured and then sat there earning nothing. Multiva has several fixed income options. I've had one for the last couple of years that averaged over 9% but should Mexico start to drop interest rates as predicted, future returns could be lower. What is the minimum amount cash required to buy into these funds?? Quote Link to comment Share on other sites More sharing options...
slainte39 Posted August 27, 2019 Report Share Posted August 27, 2019 5 hours ago, chapalence said: May I ask what institution you feel comfortable investing with? What is the rate of return? Intercam, Multiva, CI Banco...…..all good banks and returns are very similar for all 3. Depends on time and amount of investment…..just go shopping and compare as the rates move around a little, quite frequently. 1 Quote Link to comment Share on other sites More sharing options...
slainte39 Posted August 27, 2019 Report Share Posted August 27, 2019 7 hours ago, John Shrall said: Yes, but the banks withhold the I.S.R when interest is paid. No filing is required. You have to file if you are a Mexican citizen and taxpayer with CURP and RFC nos. The banks will furnish you withi an annual report of your earnings and retenciones de impuestos ( taxes with held). Quote Link to comment Share on other sites More sharing options...
traderspoc Posted August 27, 2019 Report Share Posted August 27, 2019 1.04 is tax get i year cd for best rate you spend pesos and want pesos wow CDs at multiva, over 8% flexible interest rate its beats 2% in the USA 1 Quote Link to comment Share on other sites More sharing options...
pappysmarket Posted August 27, 2019 Report Share Posted August 27, 2019 Just remember currency fluctuations. If you are not buying anything imported from the US or that contains any parts from the US you can probably forget that advice. If you pay your rent in USD perhaps not ignore that, YMMV. Quote Link to comment Share on other sites More sharing options...
John Shrall Posted August 27, 2019 Report Share Posted August 27, 2019 As an example, below is the calculator found at https://www.cetesdirecto.com/calculadoras/cetes?method=init for a 91 day cete of $100,000 pesos. 1 Quote Link to comment Share on other sites More sharing options...
chapalence Posted August 27, 2019 Report Share Posted August 27, 2019 Can you ask that the interest also be rolled over? Seems like a good idea if you don't need the money immediately, but I'm a financial numpty. Also, is it advisable to spread the CDs around? Say one at Multiva, one at CI Banco and one at Intercam? Thanks for helping Quote Link to comment Share on other sites More sharing options...
Lily H Posted August 27, 2019 Report Share Posted August 27, 2019 Yes and yes. 1 Quote Link to comment Share on other sites More sharing options...
Yo1 Posted August 27, 2019 Report Share Posted August 27, 2019 I have 28 day CETES that rollover automatically, including the interest earned. The minimum was 100,000 pesos. Quote Link to comment Share on other sites More sharing options...
chapalence Posted August 27, 2019 Report Share Posted August 27, 2019 35 minutes ago, Yo1 said: I have 28 day CETES that rollover automatically, including the interest earned. The minimum was 100,000 pesos. Is there a reason you chose 28 day CETES? Quote Link to comment Share on other sites More sharing options...
pappysmarket Posted August 27, 2019 Report Share Posted August 27, 2019 Short term ctes are good for people who think the might need the cash sooner rather than later and for people who don't want to be stuck with a low rate if rates rise. Lots of people "ladder" CD's or Cetes and if you Google that you will see the technique and reasons for doing so. Quote Link to comment Share on other sites More sharing options...
slainte39 Posted August 27, 2019 Report Share Posted August 27, 2019 5 hours ago, John Shrall said: As an example, below is the calculator found at https://www.cetesdirecto.com/calculadoras/cetes?method=init for a 91 day cete of $100,000 pesos. Which is about 6.9% interest...net. Quote Link to comment Share on other sites More sharing options...
slainte39 Posted August 27, 2019 Report Share Posted August 27, 2019 5 hours ago, chapalence said: Can you ask that the interest also be rolled over? Seems like a good idea if you don't need the money immediately, but I'm a financial numpty. Also, is it advisable to spread the CDs around? Say one at Multiva, one at CI Banco and one at Intercam? Thanks for helping Don´t know them but i hear good things about Banco Azteca. I prefer Mexican owned banks to the International chains of banks that operate in Mexico because their service just seems so much better. The only one that seems a little skittish to me, is Actinver. 1 Quote Link to comment Share on other sites More sharing options...
Yo1 Posted August 28, 2019 Report Share Posted August 28, 2019 On 8/27/2019 at 2:06 PM, chapalence said: Is there a reason you chose 28 day CETES? The interest rate is higher than other time limits and I can get my money out should anything serious happen to the Mexican economy 1 Quote Link to comment Share on other sites More sharing options...
traderspoc Posted August 29, 2019 Report Share Posted August 29, 2019 On 8/27/2019 at 11:17 AM, chapalence said: Can you ask that the interest also be rolled over? Seems like a good idea if you don't need the money immediately, but I'm a financial numpty. Also, is it advisable to spread the CDs around? Say one at Multiva, one at CI Banco and one at Intercam? Thanks for helping Too much paper work spreading cd's in different banks yes each bank covers you for about !30,000 US dollars, FDIC in USA mexico i believe its called IPAP I use Multiva, my research shows it well run and financially stable and growing. I file a FBAR (fin cin 114) each year have to list every Mexican bank as US Person. mexico banks are more stable than US banks, they were not leveraged 70 to1 or more in 2008 like US banks. Lehman 300 to 1 Mexican peso they follow US as US devalued the Dollar, mexico will keep PAR yes Trump wants a weaker dollar. US Dollar will be worth less world wide, so yes he peso could go back to 21 or 22 US devaluing the dollar has caused a gold to up 27% or more in last year, US dollar lost value Mexico in five years will be the largest trading partner of USA and the one of the largest financially stable counties in the Americas. this trade war is great for Mexico, Chinese companies will make products in mexico. not as far to ship. i love living in mexico and getting over 8% interest at Mutliva. If you feel like i do that interest may go down, buy 20 years Mexican bonds a 8 1/2 % expire 2032 and lock in your interest rate. from my research mexico does not have a history of calling in the bonds. the bonds our bought in the secondary market and can be sold usually in 48 hours or less yes there is fee to buy the bonds ,but it worth it if interest rates go down bonds pay interest twice a year. 1 Quote Link to comment Share on other sites More sharing options...
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