If you are looking for a suitable jurisdiction to keep your money safe, Israel with its ultimate stability and reliability could be a good option. The country has a strong and prospering economy, which guarantees the safety and security of the deposits you make with local banks. You will not find too many financial institutions in Israel, but all of them have been serving customers for several decades. This fact also evidences that the Israeli banking system is strong and reliable enough to entrust your funds to. Israeli banks welcome residents and non-residents alike, so feel free to use all the benefits of the local financial sector. If you need more information on how to set up an account in an Israeli bank, please explore the source that contains a lot of practical information.
Israeli Banks
The country is home to two joint service companies, four foreign credit and financial institutions, and eleven commercial banks. All of them have one regulator, the Central Bank of Israel. The majority of financial transactions in Israel are controlled by five main groups of eleven banks.
Let’s look at the leading banks in Israel:
- First International Bank of Israel that has been in operation since 1975.
- Mizrahi-Tefahot that has been in the market since 1923.
- Discount Bank that was established back in 1935.
- Leumi Bank, the oldest institution that was founded in 1902.
- Hapoalim Bank that has been operating since 1921.
It was back in 1954 that Israel created its two-tier banking system which became a solid foundation for investment safety and distribution. The system works by distributing the securities owned by customers on different stock exchanges. All banking institutions have websites in English and mobile apps that make it possible to manage accounts from wherever you are. It was forty years ago that the last banking license was issued here, and the banking sector has been a stable instrument catering to the needs of local and international customers ever since.
The Israeli financial services market is a well-established organization that will not bring any unpleasant surprises to customers. Let’s remember the 2008 crisis just to give you an example: it was a time of turbulence even for the banks that seemed absolutely stable at first sight. Israeli banks did not even need any state support to overcome the difficult times: they successfully survived using their own resources. Israeli economic (including banking) sector is a stable haven even in the hardest times.
Setting Up an Account with an Israeli Bank: Advantages
If you are a non-resident and you want to get a number of specialized banking services, Israeli financial institutions are sure to give you what you want. Each bank sets its own cooperation terms you will have to comply with, but they are usually reasonable. You will be able to open a non-resident current or savings account here depending on your needs. If you need to carry out daily operations (f.e. payments for different goods and services), you should definitely opt for a current account. A savings account is an optimal choice if you’d like to deposit some money and get a fixed interest. International transfers will be processed seamlessly as each account has its own IBAN.
Let’s look at the main pros of opening an account with an Israeli bank:
- You will take advantage of favorable deposit rates
- Access to world capital markets will be considerably simplified
- You can benefit from an installment plan without overpayments
- You will be able to trade securities on stock exchanges as the bank will act as your broker
- The bank can issue plastic cards of any format for your needs (platinum, gold, debit, credit, multicurrency, and so on)
- You can receive transfers from any bank in the world
- You will benefit from reliable asset protection
Unlike many other countries, Israel does not impose any serious restrictions related to potential bank customer’s country of origin. All applicants without exception have to undergo a stringent due diligence procedure, but you can’t do without it if you want to set up an account in any respectable bank across the globe, so this is a standard requirement. There is one more demand that is typical, but you should treat it seriously: all current and potential Israeli bank customers have to provide evidence of the legal source of funds to be transferred to and from their accounts.
There is very good news for you however: non-residents (and even new repatriates) are completely exempted from taxes on income derived abroad in the first ten years of having an account with an Israeli bank! This is the reason why we highly recommend setting up an account here if you want to accumulate the capital received from business activities in another country as it will be perfectly safe. And if you want to set up a trust or a foundation, these structures are also free from tax on foreign income.
Private Banking in Israel
Wealthy customers usually prefer private banking services that include modeling and analysis of an investment portfolio, financial planning, exclusive banking services, personal services, and so on.
Wealthy customers usually receive individual support from highly professional advisors and the best banking experts who give customized advice to cater to their personal needs.
Many Israeli banks have branches and representative offices abroad, so non-residents can receive customized services globally – even outside Israel.
How to Open an Account in Israel
Setting up a bank account in Israel starts with providing ID, the documents that confirm the legal origin of funds, and any other ones that an Israeli bank may request. Keep in mind that you’ll have to make a minimum deposit of USD 500,000 to become an Israeli bank customer.
Interested in keeping your funds in safe and secure banks of Israel? Please follow the above link to discover more or contact an expert who will answer any questions.
