Barclays

Your guide to expatriate banking services in Israel

Introduction

Israel is situated in the Middle East, on the Mediterranean Sea between Egypt and Lebanon. The national language of Israel is Hebrew, although English is also widely spoken.

The official currency is the New Israeli Shekel (ILS).

Banks

Central bank

• Bank of Israel

Commercial banks

• Arab-Israel Bank
• Bank Hapoalim
• Bank of Jerusalem Ltd
• Bank Leumi
• Bank Otsar Ha-Hayal
• Euro Trade Bank Ltd
• First International Bank of Israel Ltd
• Industrial Development Bank of Israel
• Investec Bank
• Israel Discount Bank Ltd
• Mercantile Discount Bank Ltd
• Mizrahi Tefahot Bank

Bank opening times in Israel

Banks hours vary according to the bank and, to a certain degree, from branch to branch. They are generally open from 8.30am to 12.30pm (Sunday to Friday), and from 4pm to 5pm (Monday and Thursday afternoons).

Banking services in Israel

Most of the major banks have branches all over the country, but whereas city branches are likely to offer extensive services, local branches may have restricted opening hours and offer limited services.

Most banks in Israel offer both telephone and internet banking, and also internet-only banking, with most of these services available in English. Most banks will provide bank statements and other related paperwork in English. You are required by law to keep bank statements for a period of seven years.

Many Israeli banks provide dedicated foreign currency exchange services, although you will also find specialist local money exchange services throughout Israel, typically in the main shopping areas of larger towns and cities.

The main types of bank account in Israel

Israeli banks offer a wide variety of accounts, including:

• Current accounts - typically used for everyday banking, but offering low interest rates.
• Savings accounts - more competitive interest rates (possibly a variable rate), with higher rates of interest on longer-term accounts, with limited short-term access to funds.
• Fixed-term accounts - a defined rate of interest for a fixed term - typically ranging from a month to several years. They may offer little or no access to funds until account maturity.

Opening a bank account in Israel

Opening a bank account in Israel is relatively straightforward, subject to account application criteria and identification requirements being met. Your passport or visa will be required, and taking recent bank statements plus a bank reference should help with the application process.

Opening a bank account before you arrive in Israel

Alternatively, opening an international account will give you access to a wide range of international banking services to help you manage your finances in Israel. In addition to offering tax efficient offshore banking and offshore savings options, you have the added flexibility of banking in a choice of major currencies.

International accounts can be used by clients living or working in Israel, and when travelling between international locations.

Banking services and facilities in Israel

Credit cards (Visa and MasterCard) are widely used and accepted in Israel, and credit cards can be used to withdraw cash from ATMs. However, cash withdrawals are likely to incur a fee.

There are two main types of credit card in Israel:

• Credit cards that can be used for transactions in Israel using local currency only.
• Credit cards that can be used worldwide, in foreign currencies.

Cheques
Cheques are widely used and accepted in Israel as a form of payment, and you can post-date cheques for up to a year ahead, and even deposit post-dated cheques (which will be credited to your account when the due date is reached).

Bouncing more than 10 cheques in a month will lead to suspension of the account and all future banking privileges at any bank in Israel for a year. If this happens three times in a 12-month period, the suspension extends to five years.

Cash machines
ATMs are widespread, with services available 24 hours a day. Using an ATM card is typically cheaper than using a credit card to withdraw cash. ATMs are normally located outside bank branches, and standard daily limits allow you to withdraw up to 01,000 ILS (shekels) a day - approximately £170 GBP (pound sterling).

Money transfers to and from Israel

Money transfers can be conducted through Israeli banks or through a specialist money transfer business. It is worth comparing charges and rates before you transfer money to ensure you secure a competitive rate.

To help combat money laundering, Israel introduced limits in 2002, for money being brought into and taken out of the country. ("Money" includes cash, bank cheques and travellers' cheques).

1. If you are entering or leaving Israel, money in excess of 080,000 ILS (approximately £13,700 GBP) must be reported to Customs.
2. If you are a new immigrant first entering Israel, money in excess of 01,000,000 ILS (approximately £171,000 GBP) must be reported to Customs.

Bank charges

Overall, charges are high compared to UK banks. However, charges for individual services vary considerably. Generally there are fees for using most services. It may be possible to negotiate a lower fee structure with your individual bank, and typically this would have to be approved by the bank manager.

Banking in Israel - other information

Israeli ombudsman
If you have any complaints or issues with a bank in Israel, contact the Israeli State Comptroller, who by law acts as the banking ombudsman.

More information on banking with Barclays International

To open an International Bank Account before you move to Israel, speak to Barclays International on +44 (0)1624 684316†.

Alternatively, find out more about the overseas banking services available to expats and international clients by visiting Barclays International.