Opening a Bank Account
Opening an Israeli bank account is necessary in order to receive grants, benefits and refunds from government bodies such as Bituach Leumi and Arnona. It is advisable to have both spouses’ names on the account in order to receive these refunds and benefits. Having a bank account also allows one the option of setting up automatic bill payments.
Due to IRS regulations, Israeli banks have become considerably less accommodating to foreign citizens. Some banks won’t deal with foreigners; others demand large initial deposits; and others will open accounts but without student discounts on fees.
Email support@chaimvchessed.com for information on specific banks that may cater to foreigners.
To open an account, it is generally advisable to go to one of the main branches of the specific bank. In Jerusalem, these are often located on Rechov Yaffo or Ben Yehuda.
Most banks will require the following documentation:
- Teudat zehut, or foreign passport with a valid visa
- An additional form of photo ID, e.g., a drivers license
- Tax identification number from country of origin (e.g., Social Security number, National Insurance number)
- For a student account: Letter from yeshiva or institution stating that one is a student, the period of study, study hours and stipend paid per month
- For a joint account: Marriage license
- If applicable: Proof of income in Israel (e.g., three most recent tlushim/pay stubs)
Tip
- Some banks offer foreign currency accounts. Alternatively, some shekel accounts allow one to deposit foreign currency but only withdraw the funds in shekels.
- Most banks charge monthly service fees in addition to individual transaction fees. Other accounts charge a flat monthly fee, which includes unlimited transactions.
- Often there are offers for someone opening a new account, and it is worthwhile to ask if this is the case.
- Specials for students (e.g., no monthly payments, free or discounted transactions) might be available with the proper letter from the yeshiva.
- It is important to set up an online account or a phone/fax agreement to enable performing transactions or contact the bank without visiting the branch.
ATM Cards
In Hebrew, an ATM is called a Kaspomat or Snifomat. ATM cards are generally offered when opening a bank account. One can withdraw money from any ATM in the country at a minimal charge.
A foreign bank card can also be used to withdraw shekels from an Israeli ATM, though fees are usually charged by both the foreign and Israeli bank.
Cashing Foreign Checks
One can deposit foreign currency checks into many Israeli bank accounts and hold it in that currency until needed. However, fees may apply, and it can take several weeks for checks to clear.
Tip: Foreign currency checks can often be cashed through a money changer.
Currency Conversion
The benchmark exchange rate is called the shaar yatzig, set each banking day by the Bank of Israel. This rate falls between the buying and selling rate of the foreign currency.
To hear the current rate, call 02-373-2000 (Hebrew only).
Banks convert currency at a lower rate than the posted shaar yatzig and also charge commission fees. It is recommended to convert larger amounts at once to avoid repeated fees.
Money changers generally convert currency at 0.5%‒1.5% below the shaar yatzig, which is often better than bank rates.
Wire Transfers
One can make wire transfers on large sums of money from abroad directly to their bank account.
Tip: Money changers may offer better rates for wire transfers than banks.
Paying Bills
Bills for utilities like water, telephone, gas and electricity can be paid at the bank for a small fee. Alternatively, set up a hora’at keva (automatic payment) to be deducted directly from your account. There may be a one-time setup fee.
Money Changers
Some larger foreign money exchange companies offer services similar to banks, including check cashing and wire transfers. They can offer significant savings, particularly for large transactions – e.g., buying a car or apartment.
Tip: Always use a reputable money changer.
Bank HaDoar
Israeli post offices provide many banking services through Bank HaDoar, offering low cost accounts and basic services like deposits, withdrawals and deposits and transfers – often at discounted rates.
Bank HaDoar does not grant any interest nor overdraft and does not offer savings plan options. It also does not have ATM’s for deposits and withdrawals.
Note the following:
- Every transaction incurs a fee.
- Accounts inactive for six months also incur fees.
- Deposited checks clear in three business days.
- A one-time deposit of 1,000 NIS is required before ordering checkbooks. The checkbook(s) will be mailed within two weeks.
- A monthly-fee debit card is available for purchases and ATM withdrawals.
Opening a Checking Account in Bank Hadoar
Note
Individuals with restricted or foreclosed accounts elsewhere cannot open accounts at Bank Hadoar.
Only those age 18+ may open an account.
To open a joint account, both spouses must be present.
Where to go?
Visit a main post office branch to open a checking account. Smaller, privately operated branches cannot open new accounts.
One main branch in Jerusalem:
Rechov David 7, Shuk HaBucharim (near Meah She’arim)
02-500-0158
Opening hours: Sunday, Tuesday, Thursday 8:00 am-6:00 pm; Monday and Wednesday 8:00 am-1:30 pm (closed on Friday)
Tip
Most branches require an advance appointment. Call 171 or visit the online post office appointment page. Morning hours are recommended.
What to bring?
- Teudat zehut or passport with valid visa
- An additional form of photo ID, e.g., a drivers license
- Tax identification number from your country of origin, eg: Social Security number, National Insurance number, etc.
- For joint accounts: Marriage license
New account holders are required to complete a form and pay a processing fee and will then receive an account number.
Tip
Every bank in Israel has a number – mispar bank, and every account is associated with a specific branch, which has its own branch number – mispar snif. The bank number for Bank Hadoar is 09. For the branch number: always use 001 regardless of which branch one used.
Bank HaDoar Contact Information
www.bankhadoar.co.il
24 Hour Automated Banking and Customer Service (with an easy-to-use English menu)
Allows account holders to check their balance, review transactions or get information about services.
Telephone: 02-500-5303
Fax: 02-500-5300
Live Customer Service Hours
Sunday‒Thursday: 8:00 am‒5:00 pm
Friday and Erev Yom Tov: 8:00 am‒12:00 pm
