Banking in Israel
The Israeli banking system is well-developed but has some unique features that differ from Western banking norms.
Opening a Bank Account
Requirements:
- Passport or residence permit
- Israeli ID (Teudat Zehut) if available
- Tax identification number from country of origin
- Proof of address
- Initial deposit
You may also need:
- Employment contract or proof of income
- Reference letter from previous bank
Major Banks
| Bank | Notes |
|---|---|
| Bank Hapoalim | Largest bank, extensive branch network |
| Bank Leumi | Second largest, strong digital services |
| Israel Discount Bank | Third largest, competitive rates |
| Mizrahi-Tefahot | Strong in mortgages |
| First International | Good service for new immigrants |
Most banks offer internet and telephone banking, with many services available in English. Banks are generally open Sunday, Tuesday, Thursday (8:30am-4pm); Monday, Wednesday (8:30am-2pm, then 4pm-6pm). All banks closed Friday afternoon and Saturday (Shabbat).
Currency & Exchange
The Israeli New Shekel (NIS/ILS) is subdivided into 100 agorot. As of early 2026, approximately 1 USD = 3.6 NIS.
Tips for currency exchange:
- Money changers typically offer better rates than banks (0.5-1.5% below posted rate vs bank spreads + commission)
- Convert larger amounts at once to minimize fees
- Some banks offer foreign currency accounts
- Wise (TransferWise) and similar services offer competitive international transfers
Credit Cards
Credit cards are widely used in Israel. The main credit card companies are Isracard, Cal (Visa), and Max (Mastercard). Most transactions are in NIS. Contactless payments are common.
2026 Tax Changes Affecting Banking
For new immigrants arriving in 2026:
- 0% income tax on Israeli-source income up to NIS 1,000,000 for 2026-2027
- Full worldwide reporting obligations (10-year reporting exemption removed for new arrivals from 2026)
- 10-year exemption on foreign income and capital gains tax still available
For those who arrived by end of 2025:
- 10-year foreign income reporting exemption preserved
- Not eligible for new Israeli-source income tax benefits
Tips for New Arrivals
- Open a bank account as soon as you have your Israeli ID
- Ask about special packages for new immigrants (Olim) - many banks offer fee waivers
- Set up online banking immediately for convenience
- Be aware of bank fees - Israeli banks charge for many services
- Consider keeping a foreign bank account for international transactions
Pro Tips
- •Open your account as soon as you get your Israeli ID
- •Banks charge for many services - ask about fee schedules upfront
- •Money changers offer better exchange rates than banks
- •New immigrants should ask about special Olim banking packages
- •Use Wise or similar services for international transfers to save on fees
Have questions about banking in Israel?