Opening a bank account in Israel

Israel’s banking structure is pretty similar to other developed countries. Here, you’ll find both local and foreign banks. And you can even open your own account – sure do.

In this article, we’ll focus on the advantages of opening a bank account in Israel. We’ll also cover how to do it, what documents you’ll need, and what potential shadows you might face.

Benefits of opening a bank account in Israel

There are plenty of reasons to open a bank account in Israel. Let’s list some of them:

• Banking here is cheaper than in Europe. At least if we go by strict median.
• The requirements for the minimum balance on the account are somewhat loyal.
• The owner of an Israeli bank account receives an international debit or credit card.
• The user has access to trading on global markets.
• Also, the client is assigned an individual investment consultant, who will advise on how to profitably invest money. However, it should be noted that this is true only if the account contains more than 100 thousand dollars.
• All accounts are multi-currency. By default.

Steps for opening a bank account

Before we get started, let’s figure out who’s eligible to open it. The main condition is to be at least 18 years old. The services are available to people in the country and beyond.

To open an account in Israel, you can visit one of the banks in your area – choose your taste and color (below we will tell you about the most popular and probably *liquid* ones). Next, provide documents (about them also a little below) and visit the branch with the very same package of documents. Then, sign an agreement. Finally, make the minimum amount to activate the card.

The procedure for opening an account includes the following stages:

1. Selection of a suitable bank (you can study the conditions and tariffs on the official website of each of them)
2. Visiting the bank with a set package of documents
3. Making a request to open an account
4. Signing an agreement to open an account
5. Paying the minimum amount to activate the card (the amount of payment may vary)
6. Ordering a bank card
7. Obtaining an online banking account

Unfortunately, we can’t tell you the precise numbers since it varies from establishment to establishment. But usually the amount is symbolic and purely for test purposes. After that, you’ll get a working online account. The average time for the process is about forty minutes to two hours. It rarely takes any longer. Also, do note that you can’t open the account remotely. Well, that’s not quite right: it can be done, yet only at One Zero Bank, and only for residents of Israel. That’s pretty much all of it.

Required documents for opening a bank account in Israel

The set of documents depends on who goes to open an account: resident or non-resident. However, in general terms, you will need:

• a valid passport,
• an education document (this one is optional, usually required only for students),
• a certificate that issued at the airport upon arrival (this one is optional as well, but rather for repatriates),
• and another identity document in addition to the passport. For example, a driver’s license.

Nevertheless, at their discretion, employees have the right to request additional papers. In case the account is opened jointly, a marriage certificate will also be required.

In general, the system in Israel works in such a way that almost everything related to the bank is chargeable. Paid transfers, paid transactions, paid monthly account fees.…Paid ATM withdrawals, paid currency conversion, paid overdraft protection, and so on. But! Preferential terms of service are available for new clients.

Common challenges for foreigners in Israeli banking

As such, there should be no pitfalls. But there is one ‘but’. Israel goes the extra mile when it comes to background checks. The local staff is meticulous and they take their work seriously. If there’s any doubt about the information provided, you’ll be declined. Easy as that. It will also be required to pass a mini-interview, so if you do not know Hebrew or at least English (but remember that not all employees speaks it, it’s just not part of their duties), it makes sense to secure the services of an interpreter.

There might also be some issues for non-residents or people with two citizenships: they’ll need to show proof of their income. And if the transaction is hefty, it’s also mandatory to prove that the money is from a legitimate source. This applies to residents and people with only Israeli citizenship as well, but they’ll probably be a little less suspicious in that matters.

But just a little. It’s also important to note that once you’ve opened an account, you’re expected to use the plastic card that you receive. Otherwise, the bank has every right to deactivate it. This remains true even if one opens an account but then travels outside of Israel for an extended period of time. So make sure to perform your first transactions or transfers within a month. Pay attention that you’ll need to keep an eye on your balance regularly. Perhaps even more often than you would like.

Again, there should be regular receipt and expenditure of funds: debiting money for service, automatic payments for insurance or cellular services don’t count. You can track everything through your profile in the bank’s app. If this isn’t convenient for you by any means, you can agree with the establishment to send you a detailed report to your mailing address. But if you can’t make any transactions because of certain circumstances and your account is frozen, don’t worry. The thing is, this frozen money will disappear from your balance, which might be a bit of a shock to even the bravest, but it will be temporarily withdrawn in favor of the state in order to buy securities. Later on, you can apply to the state to sell them and get your money back.

Needless to say, the full amount might not be reimbursed. Although it is a matter of luck and market behavior, rarely such attempts end in favor of the client.

What banks are there anyway?

There is a kind of monopoly in Israel. Five institutions cover about 98% of the market:

Contact us for assistance with opening a bank account

We’re here to help you get all the paperwork done and take you to the bank in order to open an account. We’ll be there to make sure you have a good experience. And we’re not just for banks – if you need help with anything else related to Israel, just give us a shout.