Just choose a much better bank in the USA the next time you are up there. USAA is the best choice, if you are eligible.

 

Check out this website. I set up a checking and savings account there and have found great rates, a credit card, and you can do it all from Mexico on line.

https://www.americansabroad.org/sdfcu-account/

Good Mexican bank for direct deposit of SS: Actinver.

 

There is no such thing as the best Mexican bank. But there could be the best bank for this particular purpose, i.e. SSP payments, while you other banking needs might better be served by some other MX banks.

Here is what you can do (I didn't, no RT status yet). Open an account in the US bank that has a counterpart in MX. Ex., Citibank or Scotiabank. Then (probably) you should open an account in their MX counterpart. Then you can have SSP deposited in the US bank and withdraw in MX counterpart bank.

Scotia has zero foreign ATM withdrawal charge within Scotiabank network even if you don't have Scotia MX account (and their ATM are ubiquitous). Scotia ATM located in grocery stores are not owned by Scotiabank and will charge a few bucks. Don't remember about Citi ATM fees but unlikely they are as numerous as Scotia.

About "good exchange rate"... Banks have never been good at it. Large amounts are probably better handled with Transferwise or OFX to your MX account.

 

From my research, USA debit cards with a MasterCard logo on them pay the best exchange rate if you were to withdraw in Mexico. The next card is Discover, then Visa.

But be weary of Bank fees for international transactions. Some charge 1% foreign transaction fees, some charge 3%, and some charge 0%. Preferably get one with 0%.

Aspiration is a newer online bank that charges no fees, and unlimited ATM fee reimbursements. Their foreign exchange rate fee is 0%. It's also a MasterCard. But the bank is newer, and I don't know how long they can sustain this business model, so I wouldn't rely on them 100% till they prove to be able to maintain their no fees business model. Although they are insured by FDIC.

Another bank that I would consider is Discover at their official website. They charge 0 fees. But the ATM will need to accept Discover cards, and I am not sure how abundant they are in Mexico. (if someone can let me know, it would be great). Also the ATM may charge you a fee for using their ATM, and Discover doesn't reimburse you.

Another account is Charles Schwab. They are a Visa, and charge 0 transaction fees, and 0% foreign exchange rate fees. They also have unlimited ATM fee reimbursements. Although they do check your credit.

If all else fails, State Farms Bank charges no fees for their basic checking account. They are a Visa. From what they told me on the phone they charge 0% foreign exchange rate fees, and 0 foreign transaction fees. They also have ATM fee reimbursements up to $10.

Capital One 360 charges no fees, is a MasterCard (I believe) but they don't have ATM fee reimbursements.

I hope this helps.

You can see the foreign exchange rates at the visa and mastercard official website.

 

I hear a lot about Schwab and would've got their Visa if I were in the US, which I'm not. Canadian market has a mere handful of credit cards with zero foreign transaction fee, all are from marginal players with terrible service, and none offer fee reimbursements from every ATM.

Visa typically have poorer exchange rates than Mastercard, still much better than a bank. But this is for purchases. If you use credit card to withdraw funds in Mexico from your US account, the bank rates will apply, if I understand correctly.

I know that people are using Mexican Citibanamex account to move SS payments from Citi US account without any transfer fees. Not too many Citi ATM in Mexican towns, but having Mexican account is convenient for online purchases where US credit cards often wouldn't work.

 

I had a Mexican bank account once. Never again. There is a reason why many Mexicans distrust the banks. Maybe if you live somewhere in Mexico where checks are accepted. Otherwise why would you need a Mexican account. Our US bank does not charge anything to withdraw from anon network bank. Ban Bajio charges 23.2 pesos to withdraw from my US bank account. I can withdraw 8000 pesos at a time. We have a joint account and my Wife can withdraw 8000 pesos at the same time. No foreign fees and I get the current exchange rate. WE never use our foreign CC in Mexico unless it is an emergency. I do admit it would be nice to pay our CFE and Telmex with a CC. If we have some unusual high bill to pay ( like hospital!!) I have my Canadian bank wire the $$. Works for us but everyone has different needs.

 

There is a reason why many Mexicans distrust the banks.

I'm curious why.

Yes, main reason for having MX account is paying bills and other online purchases (ex, you could use Mexican Paypal for online purchases, it requires MX bank account).
Plus, branch withdrawals above the ATM limit.
Plus, moving SS from the US to MX account in pesos without transfer fees like City does.

 

We have my wife's SS monies deposited into our HSBC Mexico account. The money goes from the US Treasury -> Bank of Mexico -> HSBC Mexico. There are no fees anywhere in that chain and the currency exchange occurs at Banixco (very good exchange rate). The FBU group at the US embassy in Mexico City set things up.

The drawback - if there is one - is that my wife gets the exchange rate on the 3rd of each month.

On the topic of why have Mexican accounts - we live our lives in Mexico. I actually sleep better at night knowing that we have about half our money in the US and half in Mexico. When the exchange rate goes over 20:1 I use my US credit/debit cards otherwise I use our Mexican cards. I really don't need to transfer large sums any longer. We can live (nicely) off US social security and the interest we make here in Mexico. In Mexico I use bill pay and SPEI transfers a lot.

 

Credit cards do have exchange rate better than banks. CC issued by major US bank would charge 2.5% conversion fee, but most of them will also give you 1% cashback points, so you effectively pay 1.5% conversion fee. Even after those 1.5%, considering better exchange rate than a bank, you will likely break-even, compared to using cash transferred for free from the US to MX at the bank rate. Especially if you pay attention to ever-fluid MXN/USD rates and use MX or US credit card depending on the situation, like Lat19n said.

Now, if you find CC that pays 1.25 or 1.5% cashback on all purchases and/or waives 2.5% conversion fee, you are golden. Preferably Mastercard - better exchange rates than Visa. Shop around, there were some good suggestions here. Regardless whether it's Mastercard or Visa, avoid little-known players, customer service can be terrible.

 

On the topic of MC versus Visa for the best exchange rate...

I just checked using both calculators on the web.

Given a 7000 peso amount and with 0% bank charges -

Yesterday (2/20) Visa would have charged your card $366.114
MC would have charged your card $365.77

On 2/19 Visa would have charged your card $364.63
MC would have charged your card $364.99

So tell me - which card offers the best exchange rate ? I suspect that each chooses a different hour to determine their rate.

 

I guess we should track it for a few months ... There were observations - not by me, and Mastercard came on top. Maybe Visa are are trying to do their best a little better now.

Perks that a card gives are more important than differences in exchange rates from one card to another. Cashback, conversion fee, annual fee. And - customer service. It sucks when they freeze your US account for "suspicious activity" (read - using US card in Mexico), and you can't get anybody live on the phone for hours.

Edit-PS:
About HSBC bank account - not credit cards. I remember the warning on their website that foreign HSBC ATM could charge withdrawal fee, and they don't make any promises to reimburse it. This (almost) necessitates keeping HSBC MX account. A popular bank in Mexico, many ATMs.

 

"Edit-PS:
About HSBC bank account - not credit cards. I remember the warning on their website that foreign HSBC ATM could charge withdrawal fee, and they don't make any promises to reimburse it. This (almost) necessitates keeping HSBC MX account. A popular bank in Mexico, many ATMs."

I'm sorry - try as I might - I cannot make sense of that.

Could you possibly be more specific or perhaps post a link to whatever it is that made an impression on you ?

 

There you go: https://www.hsbc.ca/1/2/personal/banking/ways-to-bank/atm. Scroll down to (*) - "...including a fee by another HSBC entity operating ATMs outside Canada."

 

Your post loses a little context I'm afraid. This is off an HSBC Canada site and is not specific to either the US or Mexico - not that it might not relate.

"You may be charged additional fees by the ATM operator or network used including a fee by another HSBC entity operating ATMs outside Canada. Foreign currency conversion rates may still apply."

Sounds to me like HSBC Canada may or may not reimburse you for ATM fees you might incur outside Canada - even at an HSBC logo'd ATM. Maybe yes maybe no - anywhere.

In addition - HSBC has various tiers of relationships with their customers and I have no idea how that might play out.

 

... and here same info for foreign ATM withdrawals from HSBC USA accounts: https://www.us.hsbc.com/atm/ - see note #2.

I would understand if it was HSBC ATM in OXXO, not in Mexican HSBC bank lobby, but if OXXO qualifies as "HSBC entity", this is interesting

 

It appears that same rules apply to foreign ATM withdrawals from HSBC US accounts, - see the link in my last post.

The rule is not specific to any foreign country. It just says that they may charge, if your account is in the US (or in Canada) and you withdraw from HSBC ATM elsewhere. This is not my "impression", but the warning I remembered from their website. As it turned out, my memory was correct. Hopefully I answered your questions.

 

For some years now, I have had my US SS monthly payments direct-deposited to my Mexican Santander account. The money is always there by the third of the month.

 

Look into HSBC bank. I stayed in Mexico for 3 months (worst disaster EVER but that's another story). There was an HSBC branch there, and they are recognized round the world.