Need a hand?

Both interest payment and withholding tax accrue daily, but if it's less than 0.01 MXN, it won't be withheld until the cumulative tax exceeds this amount. Withholding tax in Savings accounts in Mexico is calculated using a 365-day basis, while interest payments are calculated using a 360-day basis.

As required by Mexican law, we'll deduct a 0.90% annual withholding tax from any interest before it's credited to your Instant Access Savings. For more details about the tax on your Instant Access Savings, read this FAQ.

Here's an interest accrual example — consider a balance of MXN1,000 with a 7% annual interest rate, compounded daily (using a 365-day basis) with tax withholding effect using a 0.90% tax rate, which is applied each day (using a 365-day basis). The following would apply:

• Interest accrued: $25,000.00 * 7.00%/360 = $4.861111
• Payable interest: $4.86
• Tax accrued: $25,000.00 * 0.90%/365 = $0.616438
• Tax withheld: $0.61
• Interest paid after tax: $4.86 - $0.61 = $4.25
• New balance: $25,000.00 + $4.25 = $25,004.25

Remaining amount of interest and tax keep accruing until it becomes $0.01.

• Interest accrued: $25,004.25 * 7.00%/360 = $4.861940
• Payable interest: $4.86 + $0.00* = $4.86
• Tax accrued: $25,004.25 * 0.90%/365 = $0.616543
• Tax withheld: $0.61 + $0.01** = $0.62
• Interest paid after tax: $4.86 - $0.62 = $4.24
• New balance: $25,004.25 + $4.24 = $25,008.49

*Accrued interest from Day 1: $0.006438 and Day 2: $0.001940 = $0.003050 = $0.00

**Accrued tax from Day 1: $0.001111 and Day 2: $0.006543 = $0.012982 = $0.01

The Fixed Annual Rate on your Instant Access Savings will depend on your plan. To see all applicable rates, visit our Instant Access Savings page on our website.