Banking can be a painful experience
Opening a new bank account in Roatan requires patience and an understanding that, in general, the service ethos is very different here than in other countries, with a few notable exceptions. To open a bank account, you require two letters from existing account owners or people of repute in the community, and also need to be a permanent resident of the country. The general policy of the Central (Government) Bank of Honduras restrains the private banks from opening accounts to foreigners that do not have a Residency Permit.
The letters are simple and basically have to say, “I have known this person for x number of years, and they are of good character.” They must include the full name of the person(s) who want the account and the ID they are using, such as their passport or residency card. If the person who is recommending you has an account there, it does not hurt to put the account number on the letter as well. Additionally, the letter must have the address, telephone number, and the ID number of the person making the recommendation. Of course, it needs to be signed and dated. As always, since you are in Honduras, you often don’t need any of those required items, but do not be surprised if you are asked for them.
Without a Residency card, there are only two banks that I know of that will currently allow you to open an account: Banco Davianda and BANPAIS. This, of course, changes all the time, and if you get rejected the first time that you walk into the bank, take my standard advice: come back another day and try with a different banker. Rules here are so open to interpretation and, unfortunately, misinterpretation.
All banks will offer you two accounts: one in US dollars and one in Lempira. You should take both without question as you need them. The minimum deposit is usually $100 for the dollar account and 500 Lempira for the other. For the USD account, only bills that have no rips and are in good condition will be accepted. You will be given a paper bank book for each account. Do not lose them; otherwise, you will need to pay to get new ones and spend a good amount of time replacing them. You need them every time you do something in the bank itself.
Honduran banks allow you to transfer money between them using ACH transfers, basically their national clearinghouse. It is great for paying bills or sending money to other Honduran accounts and there is only a small fee.
Most banks only allow account holders to do currency exchanges as it is not a service offered to the general public. Also, the Lempira account usually gives you a high-interest rate while the dollar one, if it does, is negligible. Your accounts (cuentas) are usually savings (ahorra), and unless you are opening a business account, there is no need to have any other ones. With these types of accounts, you can normally do all the things you need if you have the right bank.
Depositing money can either be done in person at the bank, or you can give them a US check, but that can take 2 to 4 weeks to clear depending on the bank’s policies. You can also wire in money, but that is usually only for large sums, as both the originating bank and the receiving bank charge fees. Some banks have connections with international banks. I believe if you have a Bank of America account, then you can easily transfer money to a BAC account by listing them as a payee in your US account. If anyone knows of other connections, please let me know.
Withdrawals and Deposits
Normally, this would not even be a topic for discussion; you just put in money, and then you can take it out later. Ah, the simple life of the 1st world. Due to the prevalence of narco-trafficking in Central American countries, the USA is always putting pressure on their governments to limit cash flow in a futile attempt to win the drug war. It’s completely useless and it makes banking with cash a pain. You will find there are limits on how much money you can deposit and how much money you can withdraw, especially if you are using US dollars. The limits are not large, so if you are planning a big purchase like a car, it is best to talk to your bank first to make sure you understand the best (safest) way to do it. Often you may have to withdraw the money over a couple of days and keep the cash at home. Not ideal.
As always, when depositing US dollars, they must be as new. If there is the slightest tear at the edge, tape on them, or any kind of writing, they will be rejected, and you will have to find a tourist to exchange them for a better quality bill.
Which Bank?
The two banks I personally suggest are BAC Credomatic and Banco DAVIVIENDA. I currently bank with BAC, and opening an account with them was pure joy. It only took 2 to 3 hours, and I left with online banking access, my bank books, and a debit card. After only two days, a VISA debit card was delivered to my home address. I was totally shocked at the speed and professionalism. I was with my previous bank for 2 years and even after many complaints, never received my card. Their customer service is excellent, and they can be reached online or via Whatsapp. I hardly ever have to go into a branch, but if I do, they have enough tellers that the wait is not too long.
I have held several bank accounts over the years and can tell you some horror stories. Some of the banks, if you do not use the account for 3 months, will lock the account, and then you have to see the bank manager to unlock them. Absolutely ridiculous and a huge waste of your time, especially when the bank manager always seems to be at a very long lunch.
A special note about Banco Atlantida: it is one of the largest private banks in Honduras, and many people have businesses that bank with it. Usually, they have no choice as it was the only way for them to get credit card services or other commercial services. Stay away from it. If you want to know why, just swing by the bank at opening time. The line often stretches on and on. I have known people who are just paid to go and do bank work as they spend all their day waiting in lines. Around the first and 15th of the month, avoid going to the bank if possible, as around paydays, the lines are beyond belief.
Locations
The banks on the island are located here but you can easily find them on google maps.
Banpais (no residency no problem)
West End
Coxen Hole
French Harbor
BAC Credomatic (yay!)
Coxen Hole
French Harbor
Banco Atlantida
Coxen Hole
French Harbor
Banco Occidente
Coxen Hole
Banco Azteca (the Mexican bank that sells Honduran legal paper)
Coxen Hole
Banco Fichosa
French Harbor
Banco LaFise (don’t even think about it)
Coxen Hole
Financiera Insular S.A. (FINISA)
French Harbor
Coperativa Sagrada Familia
Coxen Hole
Banco DAVIVIENDA (no residency)
Coxen Hole
Mount Pleasant
ATMs on Roatan
Whichever bank you choose, the branches will be very busy on paydays and the days before and after national holidays. It is a really good idea to have all the Honduran holidays added to your calendar as there are a lot of them. These days, most banks have Facebook pages that let you know when and if they are open. To avoid contact with banks, use ATMs and their online services whenever possible.
You can find ATMs throughout the island. ATMs are now located in French Harbour at Eldon’s Supermarket, MegaPlaza Mall Banks – Banco Continental, BAC Credomatic, Banpais, Banco Atlantida all have ATMs. Texaco and HSBC in Jackson Plaza. The airport has 2 ATMs, Coxen Hole has ATMs at each bank location. West End and West Bay have several more ATMs to access your accounts. West Bay has at least one in West Bay Mall and one in the Infinity Bay hotel.
At an ATM, you can only withdraw money in Lempira, though it can be from either your dollar or your Lempira account. The maximum withdrawal for each transaction is usually 5000 LPS, which is currently about $208 USD with the fee. However, if your card allows it, you can do multiple withdrawals on the same day. A big issue is that depending on the bank card you are using, hefty fees will be added. If I use my BAC card at a BAC ATM, I pay no fees. If I use my Wells Fargo card with a fee at the ATM and a lovely fee from Wells Fargo, it ends up costing me $216 for my $208. That’s almost 5% in fees, so be careful and plan ahead.
Credit cards and Debit cards
Most large shops and restaurants accept electronic payment, but always ask at bars and restaurants before ordering. It is also worth asking if there is an additional fee for using a credit or debit card. There shouldn’t be, but there can be one added to compensate for the fee they pay the bank. You don’t need the hassle of not having enough cash to pay the bill and the accompanying police walk. Some bars and restaurants even accept PayPal.
Small stalls and shops (tiendas and bodegas) will only accept cash, though they don’t care if it is dollars or Lempira, though if your bill is too large, they may not have change for a small purchase. By large, I mean a $20 bill or 500 Lempira bill. $50 and $100 are difficult to get rid of unless you go to large stores or the gas station. The gas station attendants will usually help if you ask nicely. It is always good to carry change on you. If you take a taxi ride from West End to Coxen Hole, a 40 Lps “collectivo” (shared), there is a good chance they can’t change a 500.
How to use an ATM
To use the ATM, it helps to know Spanish. Here are some words to help you if the ATM won’t go into English mode:
“Retiros” means withdrawal.
“Cuenta” means Account.
“Ahorra” represents savings and is the default for most Honduran accounts.
“Cuenta corriente” signifies the current account and is usually the one you should choose.
Swipe or insert your card. If it has a chip, you will need to reinsert it if you initially swiped.
Generally, it asks you first if you want English or Spanish, but not always. Then, it asks you to input your PIN (cover it with your other hand). Afterward, it inquires about your desired action, which is typically “Retiros” for withdrawing money. Next, it asks which account to use, with the top right option often being the correct one. Then, it prompts you to specify the amount in Lempira. Sometimes, the ATM only dispenses 100’s, making your wallet look quite happy. Finally, it returns your card before dispensing the money.
Moving money between countries
As many people retire here, there is often a need to move their money down here regularly. There are several ways to move money, and they all have their benefits and drawbacks.
The method that should be used for large movements of money, such as buying property or cars, boats, etc., is international wires. If done correctly, these are extremely efficient, and the money can move and be available in 24 hours, even for hundreds of thousands of dollars in the case of buying houses. The benefit is that there is no percentage taken when it is transferred, and you get close to real money market rates on currency exchanges. It is better to go from a dollar account to a dollar account to avoid currency exchange. This is great advice unless, of course, you are not sending from the USA. The drawback is that there is a lot of security and paperwork surrounding them. It is imperative, and I cannot stress this enough, that the forms are filled out correctly for the reasons explained below. There are also fixed fee costs involved with sending wires, which is why the more you send, the more sense it makes to use a wire.
Security varies. Some banks require you to actually go into a branch if you need to send the money to an account that you have never wired to before. Others may require notarized letters from you. So if you want to send a wire, it is best to find out your bank’s policies way in advance. Very few just let you do it online.
The forms are crucial. If the form is filled out correctly, then the money will be there the same day or within 24 hours. If you fill it out badly, it will get lost somewhere in the banking system, not in your bank and not in the bank you wanted it to go to. I had one client who lost a wire in limbo for 4 weeks. Though when I saw the form and how they filled it in, I was not surprised. What is a real problem is that the bank had checked the form for them and signed off on it. So it was not really my client’s fault. Most tellers do not send wire transfers regularly, so they may not know how to fill a form out. Yet they do it anyway. For that reason, I always ask to see the form for my clients and try to fill it out for them in advance. Explaining what I know would take a long time, so just be careful and always ask, even if you are sure!
The cost. There are minimum fees for sending and receiving wires. What your bank charges you depends on your relationship with them, but $50 is usual. Then you also have to pay a $50 fee to the receiving bank. So it is a fixed cost of about $100 to send a wire. Therefore, there is no point in sending small amounts. I knew a person who went on Facebook and tried to slam a bank for taking $100 of $300 she sent to her gardener. Ignorance is not a reason to slam a business. However, one hundred dollars is a very cheap way to send large amounts securely.
The dollar account can be used to deposit monthly income checks from a U.S. checking account with some banks. Again, check beforehand before you pick your bank. Expect up to 28 days for it to clear. This is a great way to get the required deposit proof for retirement residency.
Other methods
Most of these methods below require you to create accounts and start with low amounts. If you have personal experience in sending money any other way, please let me know as I would love to add the information.
Xoom allows you to pick up cash from Davivenda, and it could be up to $999 USD. The most you can transfer at one time is $10,000 USD. The fee is $36 on $10k. You also have the option of Western Union, “direct to bank account.” This service is an easy and convenient way to send funds directly to a receiver’s bank account. It may take 3 to 5 days for your money to be available. If you need money to be there in minutes, you can use SOFORT banking as your payment method.
You can also have Western Union money to yourself and pick up at some of the banks here. Just be careful, as Western Union can be very picky about having your name exactly as it is on your ID. I have heard contradictory stories about people being able to open local PayPal accounts and local banks. I think, again, it depends on your bank.
Note that all these companies, to my knowledge, charge less money in fees, but you often lose on a bad exchange rate. So, at the end of the day, you have to evaluate both to see if it is a method that is good for you.
Foreign currencies (That is not USD or HNL Lempira) US dollars and Honduran money are accepted interchangeably on the island. No other currency is, and you will not be able to change your currency at banks, nor is there a foreign exchange bureau at the airport. So don’t bring it.
Important note: the US dollar is acceptable ONLY on Roatan. If you go to the mainland, you can only use Honduran currency. Try and use a US dollar, and you will get blank and maybe angry stares.
As always, these methods are constantly changing, and if you have some real and recent experience, I would love to hear from you!
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Only a few banks will let you open an account without residency.