Banking issues, big time!

Tried to use the BBVA Bancomer atm at Walmart and the machine ate my card. So I immediately went to the bank in Ajijic and told them. They told me I needed to bring in my passport as my Permanente and driver’s license wasn’t enough. Ok, so went home and got it. Went back and was told I needed a bill with my address on it. Had one in my purse but it had my home address on it, not my mailing address. Went home again and got a Telmex bill. Took it to them, but it was from May so not current. Not good enough so I tried to close the account which I have had fr 14 years. I won’t bore you with that story but I got it done after the bank calling people to ok it after I started crying.

I tried to open an account at Multiva today but have to go back tomorrow with bills showing my address. All this after a 2 week battle with banks on the States when a check I mailed got lost on the mail. Sick to death of these hassles. Thanks for letting me rant.

I feel your pain.

US banking laws make banks treat expats like criminals. A US citizen living outside the US as an expat can't open a US bank account, yet a foreign national with a US address, can. Makes no sense that a Saudi Prince or a Russian Oligarch with a Manhattan penthouse can open a US bank account, but an expat retiree living in Mexico cannot.

I inquired a few times since 2008 about opening a MXN account and got changing stories from various entities. No matter the story, it was clear it wasn't going to be a walk in the park.

Also as US citizens we have to acknowledge foreign bank accounts on our 1040; if the balance exceeds 10K USD equivalent, then we have to file separate tax forms about them.

We've managed without a MXN bank account...so far.

Luckily, I have a bank in Texas as well which I use to pay my credit card (which thinks I live in the U.S.) I’m dreading going in tomorrow for the rest of opening the local bank account as I’m hearing rumors I may have to go to Guad to the consulate to get direct deposit working. When I had it at Bancomer Inhad arranged it over the phone but that’s probably too sensible for the powers that be.

Why not just use your US banks and credit cards?

With almost everyone (from small fruterias to panaderias to pastelerias to Traitte and in-person restaurants) taking cc's now, I rarely hit ATMs these days. Used to be weekly, now barely once a month.

Make sure your cc doesn't ding you for international fees (most the newer ones do not). For us we get the bonus of airline miles. Set up the cc with auto pay via your US checking account.

Even Canadians have to fill out US documents at tax time if we hold any US stocks/bonds in our portfolio. I always get a W-8BEN from my accountant that has to be filled out each year.

BisbeeGal, I rather enjoy living day to day cash only from my SS. My trip to the States is business class free thanks to my airline miles mostly earned through a credit card I have. I didn’t want to die and the miles just go to waste.

CanuckBob, the IRS never misses a chance to make everyone’s life a pain.

Maybe it's because I don't have an enormous amount of money......but I've never understood why people rush down and open a Mexican bank account. I've been here nearly 20 years, built a house and bought and sold 8 cars. I have 2 US accounts and use my debit cards (which refund fees) for cash 2 or 3 times a month. US banks can provide headaches enough. I can't imagine having to deal with Mexican banking headaches.

BisbeeGal wrote:
Also as US citizens we have to acknowledge foreign bank accounts on our 1040; if the balance exceeds 10K USD equivalent, then we have to file separate tax forms about them.

Where on the 1040 is this entered? My understanding, and the practice I’ve followed, is:

Any U.S. person with more than $10,000 in overseas bank or brokerage accounts must fill out a Foreign Bank and Financial Account (FBAR) on FinCEN form 114. FinCEN is not the IRS, but an arm of the US Treasury Department. Filing form 114 does coinside with IRS filing deadlines.

I hear ya zdogs. 28 years for me and that date pre-dates the arrival of ATM's here so I had to deal with Lloyds in San Miguel de Allende. They were wonderful until Actinver bought them. Closed that account here in 2014. Don't miss it at all.

I don’t have to file that because the annuity I have is deposited in my U.S account. Only my Social Security goes in the Mexican account. If I can ever get the damned account open and change the routing to the new bank.

dvinton wrote:

BisbeeGal wrote:
Also as US citizens we have to acknowledge foreign bank accounts on our 1040; if the balance exceeds 10K USD equivalent, then we have to file separate tax forms about them.

Where on the 1040 is this entered?  My understanding, and the practice I’ve followed, is:

Any U.S. person with more than $10,000 in overseas bank or brokerage accounts must fill out a Foreign Bank and Financial Account (FBAR) on FinCEN form 114.  FinCEN is not the IRS, but an arm of the US Treasury Department.  Filing form 114 does coinside with IRS filing deadlines.

See these instructions for who must file Schedule B, 1040 https://www.irs.gov/pub/irs-prior/i1040sb--2023.pdf

Use Schedule B (Form 1040) if any of the following applies.
• You had over $1,500 of taxable interest or ordinary dividends.
• You received interest from a seller-financed mortgage and the buyer used the
property as a personal residence.
• You have accrued interest from a bond.
• You are reporting original issue discount (OID) of less than the amount shown on
Form 1099-OID.
• You are reporting interest income of less than the amount shown on a Form 1099
due to amortizable bond premium.
• You are claiming the exclusion of interest from series EE or I U.S. savings bonds
issued after 1989.
• You received interest or ordinary dividends as a nominee.
• You had a financial interest in, or signature authority over, a financial account in
a foreign country or you received a distribution from, or were a grantor of, or transferor to, a foreign trust.

Also look at Sch. B itself. You have to check the Box in Part III regardless of value of foreign account. Then, you indicate whether or not you have to file supplemental forms (i.e., if foreign accounts exceed 10K USD equivalent).

We only have BBVA and Intercam accounts because we have businesses in Mexico otherwise we probably wouldn't. If the peso goes for a total shit in September due to AMLO's judicial reforms I may move a large sum from Canada into my BBVA account. I'm thinking 25 to 1 (USD) or 20 to 1 (CAD) is a possibility....

zdogs wrote:Maybe it's because I don't have an enormous amount of money......but I've never understood why people rush down and open a Mexican bank account.  I've been here nearly 20 years, built a house and bought and sold 8 cars.  I have 2 US accounts and use my debit cards (which refund fees) for cash 2 or 3 times a month.  US banks can provide headaches enough.  I can't imagine having to deal with Mexican banking headaches.

You are assuming that all foreigners are retired, a false assumption. It is necessary to have a Mexican bank account if you run a business or work in Mexico.

I have had a Bancomer account for almost 20 years without any headaches whatsover.

Carry Bean wrote:Tried to use the BBVA Bancomer atm at Walmart and the machine ate my card. So I immediately went to the bank in Ajijic and told them. They told me I needed to bring in my passport as my Permanente and driver’s license wasn’t enough. Ok, so went home and got it. Went back and was told I needed a bill with my address on it. Had one in my purse but it had my home address on it, not my mailing address. Went home again and got a Telmex bill. Took it to them, but it was from May so not current. Not good enough so I tried to close the account which I have had fr 14 years. 

I  accidentally left my Bancomer debit card in an ATM. I called their English-speaking customer service, they cancelled the card, and I went into my nearest Bancomer branch a few days later to get a new card. It was several years ago, so I can't remember what documents I brought, but I remember it was no hassle at all. 

I suppose there can be employees in various branches who enjoy making things difficult, but I wouldn't assume that your experience is indicative of why someone shouldn't have a Mexican bank account.

You’re right, Mudgirl but things have changed. I never had a problem with Bancomer until last week. The nightmare with my SS is ongoing. I opened an account with Intercam this morning but it won’t be set up until next Thursday or Friday so I called Social Security on their NOT free phone number and was on hold for 35 minutes until they hung up on me. I called back, stayed on hold for another 25 minutes until they hung up on me again. I gave up and emailed the FBU (I assume that stands for Federal Benefits Unit) in Guadalajara and laid out the whole sorry mess. Waiting to hear from them.

If nothing happens, I will call SS from the States to their toll free number and hopefully get it worked out from there. If they send the check to Bancomer to the closed account and it bounces back they will assume I croaked and that will open up a whole other nightmare.

fyi, to call a US toll free number from here, I have Skype on both my cell and laptop.  Free to 'join' and all toll free numbers are free from wherever you are.  You can even set up Skype so that on Caller ID it shows your US number (if you have one).  

I know there is a numbering sequence to use to call US toll-free numbers from TelMex, but I find Skype easy.