I know from other posts I've read that there are options available for opening bank accounts and having ATM's available to me as a new arrival in Boquete, but the question I would really like to have answered by the folks who've been here a while and have had the opportunity to experience the pros and cons of it is whether it really makes sense to transfer all my banking from the States to Panama, or if it'd be better to maintain some account(s) in the US ... where I have established history and people do know me already. So what do y'all think?
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I keep a personal and business account in a US bank. Rarely use these accounts. I have accounts with Banistmo here and Scotia Bank. My retirement checks are deposited in Scotia Bank automatically and are available the same day as the deposit. Scotia issued me a debit card Visa which I use to pay bills here and also use to buy things on Amazon, Ebay and other internet sites in the US. Very simple and painless although it will probably take you 3-4 weeks to get an account open here, so be prepared and have the information required to open an account with you and up to date.
If you give yourself at least 3 weeks for clearing a check, you can transfer money from your U.S. bank to your Panama bank just by writing a check. No need to pay wire transfer fees. Or you can get money from the ATM with your U.S. bank card. I have both U.S. and Panama bank accounts. CDs here pay a lot more interest than U.S. banks or credit unions, so it's nice to have the extra income. If you get SS, it's better to have it deposited in a U.S. bank. I also use my U.S. bank account to pay my Visa and Amex bills and to maintain a U.S. PayPal account. It is very convenient having both U.S. and Panama bank accounts.
Judy brings up an excellent point which escaped me. Maintaining a US bank account is imperative for ordering items unavailable in Panama from Ebay/Paypal and Amazon. I'd be lost without either! Plus the points programs offered by US credit card companies aren't offered by Panamanian banks.
I've been here five years. I kept all of my bank, credit union, and investment accounts in my home country (US). I have friends who have been here longer than me who swear by not having a Panamanian bank account and live off of local ATM withdrawals. I have two bank accounts here in Panama so I always have instant access to cash regardless of the current state of the ATM machines.
As many here will attest to, the ATM machines here in Boquete do run out of cash especially around the holidays and special events. There have also been occasions when the ATM machine informs you that the system is down however it recorded a withdrawal from your bank account thus requiring you to contact you bank and reconcile which can take a few days (Note 1). In 2013 there was a country wide ATM outage for one week where the financial network that Panamanian ATM machines use could not access banks outside of Panama (Note 2). Having a sizable cash buffer on hand prevents impacts from these problems but in my opinion it doesn't provide the same security as having a local bank account.
My preferred bank is Multibank, though it hasn't been a perfect relationship (an employee embezzled funds out of my account, not their first time) but overall the service has been relatively reliable and consistent. Plus they've always got parking available! They allow one US check to be deposited every 15 business days (5 business days if you ask and get approval which is automatic) for an amount up to $3,000 at no charge. Their wire transfer fees are reasonable too and they've got an online system available in English accessible from the internet. Their annual $250 "foreigner" fee can be waived as well.
Keep in mind, if you're planning any large purchases such as a home, rental properties, cars, or starting a business, having a local bank account on hand makes these transactions effortless.
Notes:
1) https://boquete.ning.com/forum/topics/atm-fraud-at-banistmo-bank-pla...
2) https://boquete.ning.com/forum/topics/atm-s-so-how-do-we-get-money
I agree with Bill. I have 2 bank accounts here, Banistmo (opened when they were paying 2.5%) and Scotia, but I have my Credit Union account (lower fees) in the U S for business. I have a Schwab account for ATM withdrawals.They reimburse the $5.25 fee for withdrawals but you can only get $500. per day. Hence the need for a bank account here to be able to go to for a larger amount. Be sure you have set up very secure online banking for transferring funds between accounts and paying credit cards.
Three times I have called Schwab when I needed more than $500 cash. They temporarily raised the daily limit AND waited on the phone will I withdrew to be sure I had no issue. I've taken as much as $4500 cash out on one day. There's some strategy involved because you have to do it $500 at a time (4500=9 withdrawals) and when they raise the limit, the ATM fees is counted in that amount. So for $4500 I asked for a temp limit of $4600 to be sure I had enough to cover the fees. Of course I got all that money back on my next statement. I love Schwab. You do have to have a US address to bank there so we use one of our kids.
I am an expat for 30 years. West Africa, Spain,St. Lucia (Caribbean). Since 3 years in Panama. I always kept an account in my home country as well as the country I was and am living. Scotia Bank gives me a fast and good service. I receive various pensions in Euros. I pile them up in the European bank and than wire transfer them to Panama to save bank charges.
Keep a US account. Some factors to consider in choosing your US account: wire transfer fees, ATM fee reimbursement, foreign transaction fees on credit card.
A Panama bank account may simplify your life. Some factors to consider in choosing your Panama account: fees charge to receive wire transfers, processing time to deposit US checks, internet banking features, account fees for foreigners.