Banks of Israel: list, features of choice

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Whether you are going to Israel as a tourist or a new immigrant, you should consider opening a bank account here. The local economy is stable and gives confidence in the reliability and safety of your funds, and for a citizen of the country, this step is necessary. Let's analyze this issue together.

The main bank of the country

The main financial institution here is the Bank of Israel. He regulates and supervises the work of other institutions. Among them are commercial and foreign institutions (branches and representative offices in the country), credit card companies. The main task is to maintain price stability.

The main bank of the state issues the currency of the country. It is state-owned and supports the government with funds: lends it, deals with issues of public debt in the foreign market.

Which banks in Israel to choose

List of leading banks:

• Bank "Hapoalim" - בנק הפועלים - translated as "workers' bank" - the largest universal economic institution in the country, founded in 1921, it carries outmain operations for individuals and legal entities and includes 270 branches.
• Bank of Israel "Leumi Bank" - בנק לאומי - means "national bank" - established in London in 1902, this is the oldest financial institution in the state, includes hundreds of branches domestically and abroad.

• "Discount" - בנק דיסקונט לישראל בע"מ is the third largest financial institution in the country, founded in 1935, includes 147 branches, it was the first to automate financial transactions.
• "Mizrahi-Tfahot" - בנק מזרחי טפחות - the fourth largest in the state, created in 2004 by the merger of banks "Mizrahi" (means "eastern", established in 1923) and "Tfahot", includes 166 branches and is the largest among mortgage lenders.
• "Beinleumi" - הבינלאומי‎ - "First International Bank" - the fifth of the main institutions of the state, established in 1972 by the merger of several financial institutions, focused on both corporate and private clients.

Bank accounts in Israel

Every adult citizen of the state must be the owner of a bank deposit. All payments in the country are made by bank transfer. These are salaries, insurance benefits, financial assistance to new repatriates and families with children, social benefits and other payments. So anyone who deals with money opens an account for this in one or more banks in the country.

In a number of countries, they do not open accounts for citizens of other states,staying in the country on a tourist visa. This rule does not apply to Israel. Arriving here as a tourist, you can become the owner of a deposit both in local currency - shekels, and in foreign currency. True, not all branches open deposits in Israeli banks for foreign citizens, so check this issue in advance on the website or by phone.

How to open a bank account

Required documents for opening a deposit for a non-resident:

• A valid passport with a valid visa.
• Another personal identification document, such as a driver's license or a Kupat Holim (Medical Assistance Fund) card.
• For students - a certificate from the educational institution.

Non-residents sign a client application stating that he or she is a foreign citizen. This declaration is updated every 3 years. If there have been changes in the status of the client, he is obliged to report them to the branch.

To become a non-resident deposit owner, the client's "center of life" must be located abroad. The non-resident himself and his family must live outside the state. Place of work, real estate, permanent residence - abroad. The client must not live in Israel for more than 183 (continuous or intermittent) days during the tax year.

Benefits of opening a deposit for a non-resident in a bank in Israel:

• Exemption from foreign currency account maintenance fees.
• Preferential interest rate on deposits.
• Exemption from income tax on intereston deposits (depending on the tax return form).
• Exemption from taxes on Israeli and foreign securities.

Contributions for new repatriates

If you come to the country as a new immigrant, the first step is to open a bank account. Since the payments that you rely on will go to him.

Choose a department. In general, they provide the same services for private clients, but conditions may vary, so do your research beforehand. Leading economic institutions have a developed regional network, so among other criteria, pay attention to the proximity of the branch to the place of residence.

Interest rates charged by the Bank of Israel Hapoalim on savings deposits are 0.01%, on deposits - from 0.01% to 0.07% depending on the term.

In "Leumi" rates on deposits are higher - up to 0.1% per annum. In "Discount" this figure is 0.08%.

There is a monthly service fee, the amount of which depends on the institution. Often in the first year after repatriation, the client is provided with services free of charge.

All transactions involve a fee, from deposits to ATM withdrawals or transfers. The monthly payment includes several free transactions. Online services are provided for self-management of the deposit. This is convenient and profitable, since the amount of commission for self-service is less than for services in offices.

In the office, talk to an employee andfind out how much to deposit for activation, whether benefits for new immigrants (ole hadash) are due, when the card and checkbook are ready. Find out information for accessing the Internet banking system.

Documents for opening an ole hadash account

To open an account in a bank in Israel, come personally with your spouse, as the deposit is opened jointly. Take with you:

• Identification certificate.
• Identification of a repatriate.
• Certificate for opening an account received at the airport.
• Other documents: driver's license, passport, etc.

Opening hours of branches

In order not to be in an unpleasant situation, do not forget about the working hours of Israeli banks. They work from 8:30 to 12:30-13:00. Three days a week, branches are open in the afternoon, from 16:00 to 18:00. Usually these days are Sunday, Tuesday and Wednesday or Thursday. But if this day of the week falls on the eve of a Jewish holiday, the branch is open only until lunchtime.

Like other establishments in Israel, financial branches are closed on Shabbat and Jewish holidays.