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Mexican banks offer foreign individuals accounts both in Mexican pesos or dollars. These accounts range from regular checking and money market accounts to certificates of deposit. The peso checking and money market accounts are called "cuentas ejes" or "central accounts," whereby the account holder is able to transfer to other accounts in Mexico or worldwide, transact business in the country, or invest in the Mexican Stock Market (Bolsa).
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Type of Accounts Held in Mexican Banks
Peso Denominated Checking Accounts: a number of regular and interest bearing accounts are offered to the investor, which allow you to manage your money and earn interest income. Minimum opening deposits range from $500 to $1,000 depending on the type of account.
U.S. Dollar Checking Accounts: These accounts also range from regular checking to interest bearing accounts. Interest paid on the latter is often inferior to yields being paid in similar accounts in the United States. Minimum opening deposits range from $500 for regular checking to $1,000 for money market accounts.
Certificates of Deposit: these instruments are only offered in pesos, and they give the investor the most competitive returns on the market and are guaranteed by the issuing bank. Minimum opening deposits are usually set at $1,000.
What do you need to open these accounts?
- You must be a citizen of the United States or Canada for dollar-denominated accounts.
- Present a valid identification such as passport or drivers license.
- You must present proof of address or domicile.
- For corporations, you will need your articles of incorporation and powers of attorney.
Types of Off-Shore Accounts
Other dollar-denominated accounts are available to foreign citizens through the offshore branches of Mexican banks or their affiliated banks overseas. These accounts are normally available to high net worth individuals because of minimum balance requirements.
Financial activities carried out off-shore are free of any taxes from income, profits, inheritance, interest, dividend and transfer of funds, but income is obviously taxable in the country where you reside. These instruments range from checking accounts to CD�s, and interest earned on these accounts is often tied to market conditions or the Libor rate. Yields can be higher than rates obtained on the same instruments in the U.S. There is complete liquidity on these accounts, interest is capitalized daily, confidentiality of information, access for deposits or withdrawals worldwide, and no commissions to set up.
- Money Market Account: it is an investment account with immediate availability and operated as a "master account" to effect other transactions. This account can be opened with a minimum of $5,000, withdrawals permitted at any time, and it offers attractive returns after balances exceed $10,000.
- Certificates of Deposit: terms range from 30 to 360 days, and from 12 to 24 months. On maturities of less than a year, interest is capitalized daily and paid at maturity or monthly. On medium-term maturities, interest may be paid monthly or quarterly, and the rate is also adjusted according to market conditions or the Libor rate. Minimum deposit to open a CD is $25,000.
What do you need to open these accounts?
- You must be a citizen of the United States or Canada and offer proof of address or domicile.
- Present a valid identification such as passport or drivers license.
- For corporations, you will need your articles of incorporation and powers of attorney.
Where do you go to open these accounts?
You may contact any accredited financial institution in Mexico. Among the largest banks are Bancomer and Banamex. They all operate along the border and have offices in the U.S. and Canada.
The above information is provided as a general and informative background to business practices in Mexico, and should not be considered legal advice or your sole source of information. Wherever possible you are encouraged to utilize the services of a professional.
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