How to Open a Bank Account in Mexico

If you are planning on doing business in the lovely country of Mexico or planning to move there, you should get your financial affairs in order. We will teach you how to open a bank account in Mexico. This will ensure that you can conduct your business and personal affairs with ease. You will need one to get your paycheck if you are working or to pay your employees salaries if you are a business owner. You also need a safe place to keep your money. If you are conducting business you can save on foreign sales fees.There are many reasons why opening a bank account in Mexico is a good idea.

New Laws Regarding Bank Accounts in Mexico

The great thing about this country, is that anyone can open a bank account here. Both residents of the country as well as tourists are allowed to. New laws in immigration have made this a reality. Prior to this, you had to either be a resident of Mexico or have a permit to be allowed to bank here.

Picking Out Your Bank

Residents of the United States and other countries can go to any bank in Mexico and open up an account. There are around 30 banking institutions around the country. The best known ones are the BBVA Bancomer, Citi-Banamex, Santander Mexico and HSBC Mexico. There are different types of accounts and services that vary from bank to bank. There is an association in Mexico that can help you decide which bank would fit your needs the best.

What Kind of Bank Accounts are in Mexico?

There are a few different types of accounts that you can open in Mexico.

  • The first kind of Mexico bank account is a peso denominated checking account. This is set up under the Mexican coin exchange rate. The investor can choose from a various amount of standard and interest bearing accounts. You can earn interest on your money on some and manage your accounts. The minimum balance required is a bit high, it ranges from $500 to $4000 pesos.  Each bank has different types of checking account.  As an example, BBVA Bancomer offers a membership Checking account that needs an initial deposit of 3000 pesos and requires a minimum monthly balance of 35000 pesos so take advantage of the membership benefits.  These benefits would include such things as zero commissions on check writings.
  • Checking accounts in United States dollar currency. They also come in standard checking accounts and savings accounts that earn interest. The interest for savings accounts in Mexico is much less than those in the US. The minimum deposit is in the same range as the Peso’s accounts.
  • CEDEs or Certificates of Deposit (COD) come in pesos. The ROI or return on investment in these accounts is high and can compete with the best on the market. These are guaranteed if the bank goes under. To start up this type of bank account in Mexico, you need a thousand dollars at the minimum.  CITI-Banamex offers CEDE accounts that need an investment time of 63, 91, 187 to 378 days.  The minimum amount required to open the CEDE account is of 50,000 pesos.

What Kind of Paperwork do I need to Start one of These Accounts?

  • For dollar denominated accounts, you need to be a citizen of the U.S. or Canada.
  • Bring with you a current ID like your passport or driver’s license.
  • Bring proof of residency. If you are a company then you need the incorporation articles as well as power of attorney.

Varieties of Accounts that are Off Shore

Through branches that are offshore, dollar denominated bank accounts in Mexico are able to be used by citizens of other countries. They are generally used by folks who are wealthy because the balance requirements are high. If you carry out transactions offshore, you are exempt from any kind of taxing regardless of:

  • Income taxes
  • If the money is from being named in an estate
  • Profits from the financial activity
  • interest gained during transactions
  • Transferring money to someone else

Taxes in Your Country of Residence

Remember even though you may not be taxed in Mexico, these financial activities will be taxed in the country that you live in. The market conditions of something known as the Libor rate generally determines the yield on checking accounts and COD’s At times, one can earn more than they do in the States. The accounts are completely liquid and you earn interest on a daily basis. Your financial information is held under the strictest of confidence levels and you can put money in as well as withdrawal funds worldwide. You are not charged any commission to set up an account.

Money Market Account

If you are looking to invest and make a bit of cash in the process consider opening a money market account in Mexico. The benefit of this type of investment is the fact that it is available

right away. It is also set up as the master account. The minimum that you can have in a MMA is 5k. If you double that, you can get a hefty ROI on this account.

CD’s and the Terms

If you get a CD or Certificates of Deposit, you can get terms of interest payments that vary in length to meet your needs. You can get paid in as little as a month with some CD accounts in Mexico! There are various plans ranging from a term of 30 days up to a year and from 12 months up to 2 years.

  • If you choose a maturity level of less than 360 days, your interest is capitalized daily. You can get paid each month if you choose. On medium-term maturities
  • On CDs that mature between one and two years, you can get your interest paid on a monthly or every three month basis. The Libor rate also determines your earnings according to the conditions of the market. Expect to have an investment of at least 25k.

What is Required to Open one of these Mexican Bank Accounts?

  • To qualify for a Bank account in Mexico, you need to be a Canadian or U.S citizen. You will need verification of your residence.
  • A driver’s license, government ID, or passport is required for proof of identity.
  • If you are opening a business In Mexico or doing business with the country, be sure to have your powers of attorney documentation and articles of corporation.

Where Can I Go to Open one of These Accounts?

Like in the U.S and Canada you won’t believe how easy it is to open a Bank account in Mexico. You only need a few simple documents and easy to follow instructions. Call or visit any bank that is accredited in the country of Mexico. If you need ones that are easy to open accounts, try Bancomer and Banamex. They are also conveniently located along the border cities with the US.

Documents to Open a Bank Account in Mexico

For those opening a Mexican bank account, a few things are needed:

  • Must have proof of where you live
  • A valid driver’s license
  • A company procuration documentation if it’s a commercial account.
  • Between 7000-13,000 pesos for a minimum monthly balance. Call the bank so that you know the exact amount needed. The deposit required, varies greatly between banks.

Terms and Agreements

As with all new accounts you open, or business that you do with a company, you will want to review the terms and agreements, as well as any disclosures you need to know. You could have bank fees withdrawn from your account or overdraft fees that you weren’t aware of. Again, always read closely all documents you are signing. If you are depositing a large amount without prior notice, you may possibly ask for an exemption of fees. If you open an investment, or offshore bank account, there may be fees or higher minimum deposits than normal.

Things You Should Know

In general, banking hours are from nine in the morning to four in the afternoon. Some days like Thursday or Friday, are extended here at some banks to cash paychecks. Some banks have Saturday hours from now 10 AM to 2 PM. You Bank can tax you when you use an out of network Bank to withdraw funds. Look at the disclosures regarding ATM withdrawal and choose an easy to access location. Seem trivial if you are spending only a dollar or two but if you withdraw a few times a day, five days a week, it adds up quickly to $100 a month seem trivial if you are spending only a dollar or two but if you withdraw a few times a day, five days a week, it adds up quickly to $100 a month! that is how businesses get your money slowly without noticing. You know that the fees will be taken out now, so prevent that unnecessary fee and open up account in Mexico that is close to home if you are living there.

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