Understanding Your Savings Options
Detailed information about five main savings instruments available to people in Mexico.
Five Main Options Explained
Each savings instrument has different characteristics. Understanding how they work helps you evaluate which might fit your situation.
Bank Savings Accounts
What they are: Traditional savings accounts offered by commercial banks regulated by the National Banking and Securities Commission (CNBV).
How they work: You open an account with a bank, deposit money, and the bank pays interest on your balance. You can typically withdraw funds at any time.
Key characteristics:
- Usually offer immediate access to your funds
- Protected by IPAB deposit insurance up to regulatory limits
- Minimum balance requirements vary by bank and account type
- Interest rates set by each institution
- May have monthly fees depending on account type
Cetes Directo
What it is: A platform managed by Nacional Financiera that allows individuals to invest directly in Mexican government securities.
How it works: You create an account online, transfer funds, and purchase government securities like Cetes (treasury certificates) with various maturity dates.
Key characteristics:
- Direct investment in government debt instruments
- Various investment terms available (28 days to several years)
- Minimum investment amounts apply
- Returns based on government security rates
- Backed by the Mexican federal government
Formalized Tandas
What they are: Rotating savings and credit associations (ROSCAs) with formal structure and documentation. Traditional community savings method organized with clear rules.
How they work: A group of people agree to contribute a fixed amount regularly. Each period, one member receives the total pot. The rotation continues until everyone has received their turn.
Key characteristics:
- Requires trust among all participants
- Fixed contribution amounts and schedule
- Each member receives funds once during the cycle
- No interest paid or charged in traditional tandas
- Formalized versions may have written agreements
Community Savings Cooperatives
What they are: Member-owned financial cooperatives (cajas de ahorro) that provide savings and sometimes credit services to their members.
How they work: Members join the cooperative, make deposits, and may access loans. The cooperative is owned and governed by its members.
Key characteristics:
- Democratic member ownership structure
- May require membership fees or share purchases
- Often focused on specific communities or groups
- Subject to cooperative financial regulations
- Returns may be distributed as dividends to members
Voluntary Afore Contributions
What they are: Additional voluntary contributions you can make to your retirement account (Afore) beyond the mandatory employer and government contributions.
How they work: You make extra deposits to your existing Afore account. These funds are invested according to the Afore's investment strategy for your age group.
Key characteristics:
- Supplements mandatory retirement savings
- May offer tax benefits under certain conditions
- Long-term savings focus (for retirement)
- Withdrawal conditions and restrictions apply
- Regulated by CONSAR
Comparing General Characteristics
Different savings instruments have different characteristics regarding liquidity, access requirements, and how they function. Understanding these differences helps you evaluate options.
Liquidity refers to how quickly you can access your money. Bank accounts typically offer immediate access, while Cetes have maturity dates, and Afore voluntary contributions have withdrawal restrictions.
Access requirements vary. Bank accounts need identification and initial deposits. Cetes Directo requires a CURP and minimum investment. Tandas need group participation. Cooperatives require membership. Afores are linked to employment or accept voluntary contributions.
Minimum amounts differ across instruments. Some bank accounts have low minimums, Cetes has specific investment minimums, tandas depend on group agreement, and cooperatives may have membership requirements.
Use Comparison ToolUnderstanding Regulatory Oversight
Different savings instruments in Mexico are overseen by different regulatory bodies. Understanding who regulates what can help you know where to find official information.
Bank accounts are regulated by the National Banking and Securities Commission (CNBV). Deposits are protected by IPAB (Instituto para la Protección al Ahorro Bancario) up to established limits.
Government securities like Cetes are issued through Banco de México (Banxico) and managed through the Cetes Directo platform operated by Nacional Financiera.
Afores (retirement fund administrators) are supervised by CONSAR (Comisión Nacional del Sistema de Ahorro para el Retiro), which oversees the retirement savings system.
Community savings cooperatives may be subject to cooperative regulations and oversight, depending on their structure and registration.
Need More Detailed Comparisons?
Use our comparison tool to see general characteristics side by side.