Whether you are going to Israel as a tourist or as a new repatriate, you should consider opening a bank account here. The local economy is stable and gives confidence in the reliability and safety of your funds, but 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 controls the work of other institutions. These include 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 country's monetary units. He is a state and supports the government in cash: lends to him, deals with issues of public debt in the foreign market.
Which banks in Israel to choose
List of leading banks:
- Bank "Hapoalim" - בנק הפועלים - in the translation "bank of workers" is the country's largest universal economic institution, founded in 1921, it carries out basic operations for individuals and legal entities and includes 270 branches.
- Bank of Israel "Leumi Bank" - בנק לאומי - means "national bank" - was established in London in 1902, it is the oldest monetary institution of the state, includes hundreds of branches within the country and abroad.
- "Discount" - בנק דיסקונט לישראל בע"מ - the country's third largest financial institution, 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 Mizrahi banks (meaning “eastern”, established in 1923) and Tfahot, includes 166 branches and is the largest among mortgage lenders .
- Beinleumi - הבינלאומי - “The First International Bank” - the fifth of the main institutions of the state, created 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 is required to be the owner of a bank deposit. All payments in the country are made by bank transfer. These are salaries, insurance benefits, cash assistance to new immigrants and families with children, social benefits and other payments. So anyone who deals with money opens an account with one or more banks in the country.
In some countries, they do not open accounts for citizens of other countries 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 the deposit both in local currency - shekels, and in foreign currency. True, deposits in Israeli banks are not opened for foreign citizens at all branches, so check this question in advance on the website or by phone.
How to open a bank account
Documents required for opening a deposit to a non-resident:
- Valid passport with a valid visa.
- Another personal identification document, such as a driver’s license or Kupat Kholim (Medical Assistance Fund) card.
- For students - a certificate from the school.
Non-residents sign a client’s statement stating that he or she is a foreign citizen. This declaration is updated every 3 years. If changes have occurred in the client’s status, he is obliged to inform the department about them.
To become the owner of the deposit to a non-resident, the “center of life” of the client 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 (inextricably or intermittently) days during the tax year.
Advantages of opening a deposit for a non-resident in the Bank of Israel:
- Exemption from account maintenance fee in foreign currency.
- Preferential interest rate on deposits.
- Exemption from income tax on interest on deposits (depending on the form of the tax return).
- Tax exemption for Israeli and foreign securities.
Contributions for new repatriates
If you came to the country as a new repatriate, first open a bank account. Since the payments that you rely on will go to him.
Choose a branch. In general, they provide the same services to private clients, but the conditions may vary, so study this issue in advance. 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 accrued by the Bank of Israel Hapoalim on savings deposits amount to 0.01%, on deposits - from 0.01% to 0.07% depending on the term.
At Leumi, deposit rates are higher - up to 0.1% per annum. In the "Discount" this figure is 0.08%.
A monthly fee is taken for the service, 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 operations involve a commission, from replenishment to cash withdrawal at an ATM or transfer. The amount of 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 the commission for self-service is less than for services in offices.
In the office, talk with the employee and find out how much to deposit for activation, whether there are benefits for new repatriates (ole hadash), when the card and checkbook are ready. Find out information for accessing the Internet banking system.
Documents for opening an account ole hadadash
To open an account with the Bank of Israel, come in person with your spouse, as a joint deposit is opened. Take with you:
- Identity Certificate.
- Certificate of returnee.
- Certificate for opening an account received at the airport.
- Other documents: driver’s license, passport and more.
Office hours
In order not to be in an unpleasant situation, do not forget about the opening hours of Israeli banks. They work from 8:30 to 12: 30-13: 00. Three days a week, branches work after lunch, 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 the Jewish holiday, the department only works until noon.
Like other Israeli establishments, on Saturday and during Jewish holidays, financial branches are closed.