Banking in Mexico; Do Expats Really Need a Mexican Bank Account?

Banking in Mexico goes on our ever-growing list of items in the category of “Adulting in a Foreign Country.” Whether or not expatriates really need a Mexican bank account is debatable. As with most things, it just depends on your circumstances. This post shares our experience of banking in Mexico. It also offers ideas on why, as an expat, you might consider opening a Mexican bank account.

How We Lived Without a Mexican Bank Account

US Credit cards and ATMs

Living in a place like Puerto Vallarta using only US credit and ATM cards is not difficult. We managed for several months with little to no inconvenience. As mentioned in our Money Exchange in Mexico post, using a credit card that does not charge a foreign transaction fee typically results in the best real-time exchange rate. If we were only going to spend a couple of months a year in Mexico, we would not have gone to the effort of opening an account.

Supplementing Credit Cards and Cash with a Wise Account

Suppose you need to transfer a larger sum of money to an individual (e.g., monthly rent). In that case, credit cards are usually not an option. Using an ATM is also not practical, as the daily limits will require multiple transactions. For these scenarios, we use Wise, our new favorite financial tool. Wise is a financial tech company you can use for wire transfers, money exchange, and other administrative bank transactions. Wise offers some of the best exchange rates out there, and their fees are considerably less expensive than those charged by our US bank. 

Real-Life Example:

At one time, we needed to pay rent to our landlord who has a Mexican bank account. Our US bank charged us $50 to send a foreign wire. Our landlord’s bank charged an additional $45 commission to accept the wire. When I realized it cost $95 to send $3,500, I opened a Wise Account. The same transaction the following month using Wise only cost $14. Over the course of a year, that adds up to almost a $1,000 in bank wire fees. Crazy, right?!

Benefits of Opening a Mexican Bank Account

Save Money on ATM Fees

Plenty of US banks refund ATM fees, but ours does not. We usually withdraw the daily maximum when we use an ATM, but one could still incur up to $20 in ATM fees in a month. That seems silly considering you can open a Mexican checking account and pay nothing.

Ability to Pay Utilities Online with Debit Card

The last thing anyone wants to do is stand in line to pay utility bills. CFE, the electric company, does not accept US credit or debit cards. If you do not have a Mexican credit or debit card, you have to withdraw cash from an ATM then go to the local CFE office to pay your bill. Interestingly, there is only a 2 or 3-day window from when you receive your statement until the due date. You know what that means, right? EVERYONE is standing in the same line to pay their electric bill on the same day.

I have heard you can also pay your CFE bill at any Oxxo convenience store, but I don’t love the idea of counting out several thousand pesos at an Oxxo counter. With my Mexican debit card, I am able to pay online as soon as the invoice arrives and be done with it.

Paying Rent with Mexican Pesos

As I shared earlier, our landlords have been open to receiving transfers from Wise. That said, many landlords in Mexico prefer local bank deposits over electronic transfers. If that is the case, you’re back to the problem of daily limits and being able to pull enough cash out of an ATM. You also probably don’t want to carry a huge sack of pesos to the bank every month to pay rent.

Taking Advantage of Favorable Exchange Rates

Call me a nerd, but this is actually really fun! I signed up for a daily notification from Wise that alerts you of the current exchange. When the US dollar is really strong, I use Wise to transfer a bunch of pesos to our Mexican bank account. We use those pesos when the dollar isn’t as strong. On a regular basis, this probably doesn’t save us a ton. Still, if we were to make a large purchase like a car, it would be pretty significant.

Example of a transfer I made in early March, compared to what it would have been if I waited until late March. Note: For simplicity, transfer fees included in conversion.

Pro Tip: Open a Mexican Bank Account Before You Need One

Banking in Mexico is not the most expeditious process. There are almost always long lines at the bank. In fact, our bank recently added a computerized “take a number” system to control crowds. I’ve only been to our bank three times, but each visit took well over an hour. Moreover, opening an account is usually not a same-day process.

Required Documents for Opening a Bank Account in Mexico

Disclaimer: As with almost everything in Mexico, this probably changes multiple times per year. Please use our experience only for reference, as your bank and circumstances could differ.

Intercam Banco Requirements as of March 2022

• Passport
• Permanent Residency Card (if applicable)
• Temporary Residency Card or Tourist Visa. If using this status, you will also need to provide recent proof of address from your home country (acceptable items: fixed phone bill, electricity or other utility bill, or bank statement).
• Recent proof of address in Mexico. Acceptable items: electric, phone, or water bill no more three months old. If this is not in your name, you should also bring a copy of your lease to prove the connection between owner, utility bill, and you.
• Social Security Number
• CURP (found on residency card)
• 2 Personal References
• Information for at least one beneficiary

What to Expect When Opening a Bank Account?

Expect the process to take a few hours and multiple trips to the bank. Assuming you provide complete documentation, the new accounts representative will collect your information and ask a number of questions about your residency. You will then be sent on your way while the bank processes your application.

Approximately a week later, the agent reached out to let us know we could come in and sign the contract. At that time, we could also pick up our new debit cards and sign up for online banking. Overall, I was thrilled that we only had to make two trips to the bank.

Banking in Mexico Recap

Banking in Mexico means long lines and lots of paperwork, but there are definitely some advantages for expats. While we were able to function well without a local account, we appreciate the benefits of free ATM transactions, having a Mexican debit card for certain purchases, and taking advantage of favorable exchange rates.

Opening an account is easy, just bring ALL your patience and a good book to pass the time!

Related Post:

Money Exchange in Mexico; Get the Best Rate