Israel – Banking

What are the main banks in Israel?

Israel’s banking industry is highly concentrated, with five dominant banking groups — Bank Leumi, Bank Hapoalim, Israel Discount Bank, Mizrahi Tefahot Bank, and The First International Bank of Israel (FIBI) — collectively holding around 98% of total banking assets. All are subject to oversight by the Bank of Israel’s Banking Supervision Department. Contact details and service offerings change periodically, so always check directly on each institution’s official website for the most current information.

Beyond the five major groups, other commercial banks serve private and business customers in Israel, including Bank Yahav and the digital bank ONE ZERO, which began operations in 2022. The Postal Bank (Bank Ha-Doar) also maintains current accounts with basic services, though it is not permitted to engage in credit activities.

For a complete and current list of all licensed banking institutions in Israel, refer to the Bank of Israel official website (boi.org.il).

Do any major international banks operate in Israel?

Israel’s licensed banking sector includes both domestic institutions and branches of foreign banks, all subject to Bank of Israel supervision. As of November 2025, the sector comprises 11 domestic supervised banking corporations and 4 foreign bank branches.

Foreign banks with a branch presence in Israel include Citibank N.A., HSBC, BNP Paribas, Deutsche Bank, Credit Suisse, and State Bank of India. These branches tend to focus on corporate, institutional, and high-net-worth clients rather than everyday personal banking, so for routine day-to-day financial needs, a domestic Israeli bank will generally be the more practical choice.

Some foreign banks have previously wound down their Israeli operations — Barclays being one notable example. The footprint of international banks in any market can shift, so it is important to verify the current operational status of any foreign bank’s Israeli branch directly with that institution before making decisions based on it. The Bank of Israel maintains an up-to-date register of all licensed banking institutions.

If you currently hold accounts with an international bank in your home country, it is worth reaching out to them before your move to find out whether they maintain any reciprocal arrangements, correspondent banking relationships, or referral partnerships with Israeli banks that could help smooth the transition.

Do banks in Israel offer accounts or services specifically for expats?

A number of Israeli banks make non-resident accounts available to foreign individuals. Eligibility conditions differ from one institution to another, and the rules and standards each bank applies can vary considerably. Non-resident accounts may carry advantages such as exemptions from certain taxes and charges, along with access to preferential interest rates on held deposits. The specific terms and any applicable fees should always be confirmed directly with the bank, as they are subject to change.

New immigrants (Olim Chadashim) are entitled to special benefits upon opening an account. Many banks offer initial fee waivers or reduced charges for qualifying immigrants, though it is important to be aware that these concessions typically increase once the introductory period expires. If you are eligible as an Oleh — a Jewish immigrant making Aliyah under Israel’s Law of Return — ask each bank about their Olim package before committing, as the terms and duration of these offers can differ markedly between institutions.

Israeli banks generally present foreign individuals with two main account types: current accounts and savings accounts. Current accounts are designed for everyday financial activity such as bill payments, transfers, and routine transactions, while savings accounts may offer fixed or variable interest rates, often with some restrictions on how freely funds can be accessed.

Tourists and foreign investors can open accounts, though they may encounter additional requirements around source-of-funds documentation and anti-money laundering compliance. It is worth knowing that many fees, charges, and account conditions in the Israeli banking market are open to negotiation, particularly as your account balance grows. Always check current terms directly with the relevant bank. As of 2025, typical monthly maintenance fees range from NIS 10–30, and some accounts are available free of charge for eligible new immigrants.

What are typical bank opening hours in Israel?

Branch hours at Israeli banks follow the local working week, which runs from Sunday to Thursday. Most branches open from around 8:30 am to 1:00 pm Sunday through Thursday, with some locations offering extended afternoon hours on selected days — typically Sunday, Tuesday, and Thursday. Friday hours are shorter, usually limited to the morning, and branches are closed on Saturday (Shabbat) as well as Jewish public holidays.

This schedule can catch newcomers off guard if they are accustomed to a Monday-to-Friday working week. In Israel, Sunday is a standard business day while Saturday is the day of rest. Public holidays are tied to the Jewish calendar, meaning their dates shift from year to year — downloading a current holiday calendar from the Israeli government portal (gov.il) is a practical step.

Israel has extensive internet infrastructure and is at the leading edge of digital innovation, with card and mobile payments accepted at virtually every point of sale. Digital payment applications are used widely for both personal transactions and payments to service providers. The major banks all provide capable mobile apps and online banking platforms that allow most transactions to be carried out at any time, significantly reducing the need for branch visits. Telephone banking during business hours is also broadly available.

Banking services through Pepper, for instance, are available by phone during the day and via a 24/6 chat service, reflecting the increasing expectation among Israeli banking customers for near-constant digital access. Branch hours can differ between locations and change around holiday periods, so always confirm opening times directly with your chosen bank.

What do expats need to know about the banking system in Israel?

The Bank of Israel is the country’s central bank, responsible for issuing currency, formulating and implementing monetary policy, and regulating banking activity through its Banking Supervision Department. Unlike some other countries, Israel does not consolidate all financial regulation under a single authority. The Bank of Israel oversees banking activity and payment and clearing systems, while the Capital Market, Insurance and Savings Authority (CMISA) is responsible for insurance, pension, and provident fund markets, as well as supervising non-bank financial service providers.

Transaction fees (Amlah): Israeli banks commonly charge a small fee — known as Amlah — on a range of financial transactions. It is worth comparing these fees across different banks before selecting one, as they can add up meaningfully over time. This contrasts with banking systems in countries such as Canada or Australia, where many everyday transactions on standard personal accounts are free of per-transaction charges. As of 2025, typical charges include NIS 5–8 for ATM withdrawals at another bank’s machine and NIS 15–50 for international transfers, with foreign exchange margins of approximately 1%–3%.

Deposit protection: Israel does not have a deposit guarantee scheme comparable to the FDIC in the United States (which insures up to $250,000 per depositor) or the FSCS in the United Kingdom (which covers up to £85,000). The stability of depositors’ funds instead relies on the Bank of Israel’s rigorous supervisory and regulatory framework, which has been substantially strengthened in recent years. For the latest information on any deposit protection arrangements, contact the Bank of Israel directly.

International transfers and tax declarations: While sending money abroad from Israel has become more straightforward than it once was, the process remains time-consuming relative to many other countries. Before a bank will execute an international transfer, you must complete and submit a declaration affirming that you have no outstanding tax obligations on the funds being sent overseas. This procedural requirement comes as a surprise to many expats and can cause delays for those who are unprepared.

FATCA and US citizens: Due to regulatory requirements, only Israeli residents who are not US citizens are eligible to open an account with Pepper. This reflects the broader impact of the US Foreign Account Tax Compliance Act (FATCA), which imposes additional compliance obligations on Israeli banks when serving American citizens. If you hold US citizenship, expect a more involved onboarding process at any bank and confirm eligibility for specific accounts before proceeding.

Language: Hebrew is the default language for most banking interfaces and documentation, though the principal banks — Bank Leumi, Bank Hapoalim, Mizrahi-Tefahot, and FIBI in particular — offer English-language customer service and some English-language digital interfaces. Confirm the availability of English-language support with any bank you are considering before opening an account.

Market concentration: Israel’s banking sector is highly concentrated, with five major commercial banks accounting for roughly 98% of total banking assets. This limits competitive pressure in the retail segment compared to more fragmented markets. The emergence of digital banks and fintech providers is, however, beginning to introduce greater choice and competition for everyday customers.

How Do I Open a Bank Account in Israel as an Expat?

Opening a local bank account is one of the first practical steps for new immigrants, expatriates, students, business owners, and long-stay visitors in Israel. Whether you are settling permanently or require a local account for employment or investment purposes, familiarising yourself with the process in advance will save considerable time and frustration. The steps outlined below reflect the general process as of 2025, but requirements can differ between banks. Always consult your chosen bank’s official guidance or the Bank of Israel for current requirements.

1. Choose your bank. Review the five major banks and assess their fees, branch networks, English-language support, and any packages available for expats or Olim. Whether you are drawn to an established institution such as Hapoalim or Leumi, or prefer a digital-first option like Pepper or One Zero, the priority is matching the available options to your personal financial needs. Bear in mind that fully digital banks such as Pepper and One Zero are restricted to non-residents; their licences limit remote onboarding to holders of Israeli identity documents.
2. Gather your documents. Documents you will typically need include a valid passport; your Israeli visa, residence permit, or Teudat Oleh (immigrant certificate) where applicable; proof of your Israeli address (for example, a rental agreement or utility bill); your Israeli tax identification number if one has been assigned — contact the Israel Tax Authority at gov.il; evidence of income or employment; and, in some cases, a source-of-funds statement. Every individual named on the account must attend in person with their documentation. You will be asked to sign declarations confirming that you report taxes in your country of origin and that the funds in the account are your own — these forms address both tax compliance and anti-money laundering obligations.
3. Schedule a branch appointment. All five major Israeli banks allow the account-opening process to be initiated through a mobile app or by telephone. Those who wish to proceed in person with a bank representative at a branch can book an appointment via the bank’s website or by calling the branch directly. Bank of Israel guidance confirms that fully remote identity verification is only available for Israeli private customers, not for foreign residents.
4. Attend the appointment and complete compliance checks. Israeli banks conduct thorough due diligence checks on prospective customers. Expect to be asked about the intended purpose of your account, the origin of your funds, and your anticipated financial activity in Israel. The Israeli banking sector places strong emphasis on regulatory compliance, and standards have been tightened further in recent years. Arriving with well-organised, clearly labelled documentation is strongly recommended.
5. Sign the account agreement. Once the compliance process is concluded, you will be asked to sign the account agreement. Examine all fee schedules carefully — Israeli banks charge for many transactions that would be free in other countries, and most levy a monthly service fee on top of per-transaction charges. As of 2025, monthly fees are typically NIS 10–30.
6. Make an initial deposit. Funding the account activates it, granting you access to internet banking services. There is no universal minimum deposit set by regulation, but individual banks may require an initial deposit — clarify this requirement with your chosen institution before attending your appointment.
7. Set up digital banking. Install your bank’s mobile app and register for online banking. Most Israeli banks provide modern digital platforms with features including domestic and international transfers, Bit and PayBox payments, investment and savings products, and foreign currency exchange.
8. Consider keeping your overseas account open. Retain your foreign bank account after relocating, and ensure it is configured to send wire and ACH transfers, so that you retain easy access to your money throughout the transition period.

What banking and payment apps are widely used in Israel?

Israel’s high-quality internet infrastructure and culture of technological innovation have made digital payment solutions a standard part of everyday life. Payment apps are in common use for transactions between individuals and between customers and businesses alike. The two most widely used peer-to-peer payment platforms are Bit and PayBox. Registration involves entering your phone number, bank details, and card number, after which you can send payments to others simply by selecting them from your contacts via their phone number.

Both Bit and PayBox require an Israeli credit card to function, which means a local banking relationship is a prerequisite for using either platform. Anyone relying solely on an overseas card will not be able to access these services until they have established an Israeli bank account.

Pepper was introduced in 2017 as a digitally focused subsidiary of Bank Leumi, offering zero transaction fees and a technology-driven approach to personal finance. It provides customers with personalised financial insights and account management tools through its mobile platform. Through the Pepper app, users can manage a bank account, apply for loans, open savings accounts and fixed deposits, and obtain a cheque book along with an international credit or debit card.

By 2024, One Zero had grown to more than 150,000 customers with deposits exceeding NIS 4.5 billion, representing around one-third of all new retail accounts opened in Israel since its launch. In September 2025, Esh Bank Israel entered the market as the second digital bank, offering fee-free accounts and a revenue-sharing model for depositors through its app-based platform, adding further competitive pressure to the neobanking space.

International services such as Wise (formerly TransferWise) and PayPal are accessible and widely used in Israel for cross-border transfers and online purchases respectively. Revolut has also attracted Israeli users for managing multiple currencies. These services operate within the framework of Israeli financial regulations and cannot replace a local bank account for day-to-day living. Always check the current availability and terms of any international fintech service in Israel, as regulatory conditions can evolve.

How can expats manage money between Israel and their home country?

Transferring money out of Israel can be a more involved process than many expats expect, which is why it is sensible to keep your foreign bank account open after relocating. Although the process has improved considerably in recent years, international transfers from Israel remain more time-consuming than in many comparable countries. Understanding the procedures before you need to make a transfer — rather than discovering them at a moment of urgency — is strongly advisable.

Tax affidavit requirement: A signed declaration confirming that you have no outstanding tax obligations on the funds you intend to transfer abroad must be completed and submitted to your bank before the transfer request will be processed. This is a standard procedural requirement built into the Israeli system, not an indication of any irregularity. For guidance on your personal tax position, consult a licensed Israeli tax adviser or contact the Israel Tax Authority via gov.il.

IBAN and international transfers: Each Israeli bank account is assigned an IBAN to facilitate the correct processing of international transactions. Israeli banks can handle SWIFT/IBAN transfers to most countries worldwide, though fees vary between institutions. As of 2025, bank-to-bank international transfer fees are typically NIS 15–50 per transfer, with foreign exchange margins of around 1%–3%. Confirm the current fee structure with your bank, as these figures are subject to change.

Third-party transfer services: Providers such as Wise offer exchange rates and fees that can be significantly more competitive than those of traditional banks for many currency pairs, including the Israeli New Shekel (ILS). Before initiating a sizeable transfer, it is worth calculating the total cost — including any exchange rate margin — through both your bank and an alternative provider.

Reporting requirements: Israeli tax residents are required to declare their worldwide income to the Israel Tax Authority. If you hold financial accounts or investments overseas, you should seek advice from a qualified Israeli accountant or tax adviser about your specific reporting obligations. The Israel Tax Authority and the Bank of Israel are the authoritative sources for guidance on these matters.

Multi-currency accounts: Israeli banks can offer multi-currency accounts, which provide useful flexibility for individuals and businesses with ongoing international financial dealings. If you regularly transact in foreign currencies — particularly US dollars or euros — ask your bank about holding a foreign currency sub-account, which can help avoid repeated conversion costs and the associated exchange rate losses.

Frequently Asked Questions

Can I open an Israeli bank account before I arrive in Israel?

Digital banks such as Pepper and One Zero are not accessible to non-residents, as their licences restrict remote onboarding to holders of Israeli identity documents. Bank of Israel guidance confirms that fully online identity verification is available only for Israeli private customers, not for foreign residents. For those who have not yet relocated, the most practical approach is to contact a major bank’s international desk or seek assistance from a licensed currency broker. In the majority of cases, a branch visit in person will be required once you arrive in Israel.

What documents do I need to open a bank account in Israel?

You will generally need a valid passport, proof of address in Israel (such as a tenancy agreement or utility bill), your Israeli visa or residence permit, an Israeli tax identification number where applicable, and evidence of income or the source of your funds. You will also be required to sign declarations covering both tax compliance and anti-money laundering obligations. Exact requirements differ between banks, so confirm the full list of required documents with your chosen institution before attending your appointment.

Are there bank accounts designed specifically for new immigrants to Israel?

New immigrants (Olim Chadashim) are entitled to special benefits when opening a bank account. Banks frequently offer initial fee waivers or discounted charges, though these concessions typically increase once the introductory period has elapsed. Banks including Israel Discount Bank, Bank Leumi, and Bank Hapoalim all advertise packages specifically for Olim — compare these carefully before making a decision, as the terms vary between institutions.

Is there deposit protection in Israel like the FDIC or FSCS?

Israel does not operate a deposit guarantee scheme equivalent to the US FDIC or the UK FSCS. Depositor protection instead rests on the Bank of Israel’s robust framework of prudential regulation and supervision rather than an explicit per-depositor insurance fund. For the most up-to-date information on depositor protection arrangements in Israel, consult the Bank of Israel directly.

What are the main payment apps used in Israel?

The two dominant peer-to-peer payment platforms in Israel are Bit and PayBox. Getting started involves entering your phone number, bank details, and card number, after which you can send payments to others by selecting them via their phone number. Both apps require an Israeli bank account and credit card to operate, so they remain inaccessible until you have established a domestic banking relationship.

Can US citizens use digital banks like Pepper or One Zero?

For regulatory reasons related to US FATCA compliance, only Israeli residents who do not hold US citizenship are eligible to open an account with Pepper. Both Pepper and One Zero are exclusively available to Israeli residents whose tax residency is in Israel and who do not hold American citizenship. US citizens should approach one of the five major commercial banks, all of which have established procedures for managing FATCA compliance.

Do I need to pay tax on money I transfer out of Israel?

Before an Israeli bank will process an international transfer, you must complete and submit a declaration affirming that you have no unpaid tax obligations on the funds being sent abroad. This is a routine requirement in Israel rather than an indication of any issue. It is advisable to consult a licensed Israeli tax adviser to understand your personal obligations, and the Israel Tax Authority (gov.il) is the authoritative source for guidance on tax reporting for residents.

Are international fintech services like Wise or Revolut available in Israel?

Yes, Wise and comparable services are accessible to users in Israel and are commonly used for international transfers and multi-currency management, often offering more competitive exchange rates than traditional bank transfers. However, these services cannot substitute for a local bank account when it comes to daily life in Israel — domestic payments, direct debits, and access to platforms such as Bit and PayBox all depend on having a domestic account and Israeli credit card. Always verify the current availability of any international fintech service in Israel and check for any applicable regulatory restrictions directly with the provider.