As a migrant in Israel, it can sometimes be confusing to know which financial services cost you money and which ones are free. Many migrants and expats in Israel are surprised to learn that most of the basic financial transactions have fees attached to them, which can make banking in Israel expensive compared to your home country. Here, we’ll take a look at what financial services in Israel come with a fee and some ways you can avoid them.
What Financial Services Are You Charged for in Israel?
Many migrants don’t look into opening a bank account in Israel because they assume that they’re not eligible. However, many banks will allow foreigners to open an account under certain circumstances, which can make it easier for migrants to handle their finances on a day-to-day basis. We surveyed 500 people who use Rewire and found out that 43% of our clients in Israel don’t have an Israeli bank account or credit or debit card.
While the remainder of our clients without an account may have their own reasons for not opening one, often, migrants don’t know it’s possible to open an account as a non-resident. Some banks offer non-resident bank accounts that you can use as a foreign resident living and working in Israel. Still, whether you have a non-resident account or something else, it’s important to know what you can be charged for in advance to avoid any surprises.
In Israel, banks can charge their customers fees for a number of financial transactions, such as:
- Transaction fees for withdrawing money
- Transaction fees for using a debit card
- Monthly fees on a credit card
- Taking out a loan or a mortgage
- Monthly fees for keeping a savings account
- Depositing or withdrawing foreign currency
- Wire fees
- Maintenance fees
- Fees to receive cheques
In the same survey, we asked Rewire users if they were aware of their banking fees, and 42% of them responded that they had some idea what they were, and 14% had no idea at all. Luckily, there are ways you can begin to cut down on these fees and start saving money on each transaction.
How to Save Money on Financial Service Fees in Israel
All banks in Israel come with services fees, but the exact transaction fees depend on your bank, but in order to get an idea of what you’re spending, you can ask the bank to provide you with an annual summary of what you’ve paid in fees. From here, you can see where you’ve paid the most and figure out some ways to cut down on unnecessary banking fees. Here are a few tips:
- For starters, being aware of the fees your bank charges is the first step. If you know you have a certain amount of free withdrawals per month before you’re charged a fee, you can plan to withdraw more money each time to avoid unnecessary charges.
- Use a loadable or prepaid credit card in Israel instead of one from a bank. That way you can still use a card anywhere credit cards are accepted but you don’t need to worry about monthly fees.
- Before opening a bank account in Israel, do a side-by-side comparison of rates from the major banks. Based on the services you think you’ll use the most often, like withdrawals or wire transfers, opt for the bank with the lower transaction fees.
- Sometimes, there is an extra fee for withdrawing or depositing cash with a bank teller, so make sure to use the bank’s ATMs instead.
- Ask for discounts! Some banks may offer incentives for new customers or for immigrants or expats. In Israel, almost everything is negotiable, so don’t hesitate to ask about waiving fees or discounting them if you’re opening a new account.
Final Word
Banking in Israel can be comparatively expensive, but by knowing where the hidden fees are, you can work around some of them. Aside from banks, look for alternative financial services that can help you manage your money while you’re abroad, such as Rewire. These online services often offer the same services as a bank would with lower fees and apps and information in English, making them a preferable choice for migrants in Israel.
