If you’re searching for a stable place to save your money, Israel with its strong reputation and dependability could help you out. Since the economy in the country is healthy, your money is always safe and protected in local banks. The number of financial institutions in Israel is low, but every one of them has been supporting customers for many years. In addition, this shows that the financial system in Israel is solid enough to safeguard your money. Anyone living in or outside Israel can use the advantages of the local banking system. If you require guidance on how to open an account at an Israeli bank, the source includes enough practical details for you.
Israeli Banks
Two joint service companies, four foreign credit and financial institutions, and eleven commercial banks are based in the country. Every player in the money market gets its instructions from the Central Bank of Israel. Together, five big groups of eleven banks handle most of Israel’s financial transactions.
We will go over the major banks operating within Israel.
- The First International Bank of Israel was established in 1975 and has been working since then.
- Mizrahi-Tefahot got started in the Israeli market back in 1923.
- It was in 1935 that Discount Bank was founded.
- The first bank established in 1902 is Leumi Bank.
- The banking network known as Hapoalim has been mainly active since 1921.
Back in 1954, Israel introduced a two-tier banking system that helped ensure safety and proper distribution of investment. Security is made available by distributing the stocks of customers among different stock exchanges. All banks offer websites in English and mobile apps so that you can look after your accounts from any location. The last banking license was issued in this country forty years back, and since then, the sector has worked as a stable tool for handling financial and banking matters of local and foreign clients.
There’s little to worry about with the Israeli financial services market since it’s an established and reliable company. For example, in 2008, we saw that banks at first seemed very stable but went through serious instability. Israel’s banks managed to overcome the tough economic times using their own strengths. Israel’s financial (including banking) area remains stable even in trying times.
Advantages of Creating an Account with an Israeli Bank
If you come from another country and require financial services, you are bound to find them at Israeli banks. Each bank makes its own conditions for cooperation, and these are usually not complicated for customers to follow. At this bank, you have the option to open a current or savings account if it suits you. Using a current account is necessary if you plan to do regular transactions (such as paying for what you buy every day). Picking a savings account gives you the chance to save your money and receive the same interest rate every time. The process will go smoothly for international transfers because each account gets its own IBAN.
Let’s discuss what are the main benefits of opening an account with a bank in Israel.
- You will use the bank accounts that pay the highest interest for your deposits
- Capital markets in different countries will become much easier to use.
- No need to worry about losing money because you can use an installment plan.
- You may trade securities on stock exchanges since the bank is qualified to act as your broker.
- It is possible to get plastic cards of any type (platinum, gold, debit, credit, or multicurrency cards) from the bank for your use.
- You are able to get bank transfers from anywhere around the world.
- Taking advantage of reliable asset protection will help you.
Israel is unique in that it does not apply strict restrictions on where a potential customer comes from. All hopefuls have to go through an in-depth background check, but if you plan to open a bank account at a reputable place, this is normal practice so is necessary for all. Another usual requirement in Israel is that all customers have to prove the legal reasons behind their transfers to and from their accounts.
The advantage is that new and existing non-residents of Israel are totally free from taxes on earning income outside the country for the first ten years of joining an Israeli bank. This is why we suggest registering an account here if you plan to save the money from your business overseas, because it is completely safe. You can also make a trust or establish a foundation here because they are relieved of foreign income tax.
Private Banking services in Israel
Usually, wealthy people choose private banking because it includes creating and reviewing their investment portfolios, making financial plans, providing special banking services, and offering personal services.
Most banks offer their wealthy customers extra support from professional advisors, who are there to guide them individually instead of using the same programs for everyone.
Israeli banks have positions all around the world, so people living abroad can get the same high-quality services that are offered within Israel.
A guide to creating an account in Israel
In Israel, the first step to opening a bank account is supplying your ID, the proof of where the money comes from, and any other forms the bank might require. Be aware that in order to open an account with an Israeli bank, you have to deposit at least USD 500,000.
