What are the best banking options in Israel for expats?
From opening an account to wiring money home, banking in Israel has its own set of rules. This guide walks you through all of them.
Banking Overview in Israel
| Feature | Details |
|---|---|
| Currency | Israeli new shekel (ILS) ₪ |
| Bank Account for Foreigners | Yes |
| Access Difficulty | Medium |
| Remote Opening | No |
| Wise Available | No |
| N26 Available | No |
Opening a Bank Account in Israel
Foreigners can open bank accounts in Israel. The process difficulty is rated as medium, which means you should expect some bureaucracy and possibly language barriers.
Required Documents
- Valid passport or national ID
- Proof of address / residence registration
- Residence permit (if applicable)
- Tax identification number (if available)
- Initial deposit (amount varies by bank)
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Digital Banking Options
Wise (TransferWise)
Wise has limited availability in Israel. While you may be able to send money to Israel, full local account features may not be available. Check their website for the latest on Israel-specific services.
N26
N26 is not currently available in Israel. You may need to consider local digital bank alternatives or traditional banks.
International Transfers
When transferring money to or from Israel, consider these factors:
- Exchange rate: The currency is ILS. Always compare the offered rate with the mid-market rate.
- Transfer fees: Transfer fees vary — compare providers like Wise for the best rates.
- Transfer speed: Bank-to-bank (SWIFT) transfers take 2-5 business days. Digital services often complete within 1-2 days.
- Regular transfers: If sending money home regularly, set up a recurring transfer to lock in better rates.
Salary and Everyday Banking
The average salary in Israel is approximately €3,542 per month. Your employer will typically require a local bank account for salary deposits. Most banks offer:
- Debit card (Visa or Mastercard)
- Online banking portal and mobile app
- Direct debit setup for rent and utilities
- ATM withdrawals (check fee policies)
Tips for Expats
- Keep your home bank account: Maintain an account in your home country for at least the first year, in case you need to transfer funds back.
- Get a local phone number first: Most banks require a local mobile number for SMS verification. Set this up before visiting the branch.
- Compare fees before choosing: Monthly account fees, ATM charges, and international transfer costs vary wildly between banks. Ask before you open.
- Carry cash for the first week: Card acceptance varies. Have enough local currency to cover taxis, meals, and small purchases until your account is active.
- Understand tax reporting: Bank interest may be taxable. Ask your bank about withholding tax and whether they report to foreign tax authorities.
Additional Practical Information
The following information is compiled from expat community sources and recent reports to complement the official data above.
Key Institutions and Services
Based on current expat reports, the following organisations and services are relevant for newcomers to Israel:
- First International Bank
Additional Data Points
Recent reports and expat sources provide these additional figures for Israel:
- The five largest banks in Israel – Hapoalim , Leumi , Discount , Mizrahi , and First International Bank – control more than 80% of the banking business. In 2022, there were 10 commercial banks in Israel, with 1,510 branches in the country's 82 cities (Israel's territory is, for comparison, 25 times smaller than France's). The banking system is controlled by the Bank of Israel , an independent body. Foreign banks operating in the country are not authorized to conduct banking operations.
- To open a private bank account, a foreign resident must present :
- To open a commercial account, the foreign resident must present:
- For the account to be in the name of the company and not in the name of the owner, the latter must present one of the following documents which will attest to the name of the company:
Additional data sourced from expat community reports. All information should be verified with official sources.
Frequently Asked Questions
How long does it take to open a bank account in Israel?
Opening a bank account in Israel typically takes 1-3 weeks depending on documentation readiness and the bank chosen. Digital banks may be faster.
Can I open a bank account remotely before moving to Israel?
Remote account opening is generally not available in Israel. You will likely need to visit a branch in person with your documents.
Is mobile banking widely available in Israel?
Yes, most major banks in Israel offer mobile banking apps with features like transfers, bill payments, and balance checks. Local banks are increasingly investing in mobile technology.
Can I receive my salary in a foreign bank account in Israel?
Technically yes, but most employers in Israel prefer paying into a local bank account. Using a local account avoids international transfer fees and delays.
Are there any fees for maintaining a bank account in Israel?
Many banks in Israel charge monthly maintenance fees ranging from ₪2 to ₪15. Some offer free accounts if you maintain a minimum balance or receive a regular salary.
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