Banking & Transfers
Banking and Money Transfers in Israel
Banking and transfers are where olim quietly lose the most money to friction — and where a little knowledge saves the most. The gap between a bank wire and a specialist transfer service can be hundreds of dollars on a single move, almost all of it hidden in the exchange rate rather than the headline fee.
This guide covers the three things that matter: opening the right account, getting your money into Israel cheaply, and changing currency day to day without the slow bleed. The one rule underneath all of it: compare the shekels actually delivered, not the advertised fee.
This is general information, not financial advice. Thresholds and fees change — confirm current figures before a large transfer.
Opening an account: your first piece of Israeli admin
An Israeli bank account is the hub for nearly everything — salary, rent, bills, benefits. The big five banks all serve olim with English-speaking staff, and newer digital banks offer lower fees.
The big five: Hapoalim (largest), Leumi, Mizrahi-Tefahot, Discount, and First International (FIBI) — the last is strong for international services.
Digital options: newer app-based banks such as One Zero, plus other lower-fee alternatives, are worth comparing.
What you'll need: passport, Teudat Oleh or Teudat Zehut, proof of address (rental contract or utility bill), and often an Israeli phone number.
The single most useful thing to know: ask for the oleh package. Many banks waive monthly fees for the first year or two for new immigrants, drop minimum-balance requirements initially, and offer English-speaking service. It's the same account either way — so make sure you're on the oleh package, not the standard one.
Getting money to Israel: where the real money is saved
The method you choose to move funds matters far more than most people realise. Here's what moving $10,000 actually costs, illustratively:
MethodRate marginRough total costBank wire (SWIFT)2–4%~$300+Wisemid-market rate~$60OFX~0.5%~$50
The breakdown by method:
Bank wire (SWIFT): 2–5 days, but banks add a 2–4% margin on the rate plus fixed fees — expensive.
Wise: the mid-market rate with a transparent ~0.4–1% fee; fast, and the favourite of most olim.
OFX: strong for large transfers ($10,000+), often with no fee and a tight margin.
Revolut: good rates for frequent smaller transfers and multi-currency holding.
The trap to avoid: the fee you see isn't the cost that matters. Services advertising "no fees" usually bury their margin in a poor exchange rate. Compare the shekels actually delivered — that's where Wise and OFX quietly beat the banks by hundreds of dollars.
Changing currency: cash, cards, and rates
For physical currency and day-to-day spending, the options vary widely in cost:
Banks: convenient and secure, but a 2–4% markup — fine only for small amounts.
Licensed money changers (chalifaniot): better rates than banks and negotiable on larger sums. Use licensed operators (Change Spot, Change Place, and others), and mind the security of carrying cash.
ATM withdrawals: a foreign card adds a 1–3% foreign-transaction fee plus an ATM fee — cheaper to transfer online first, then withdraw from your Israeli account.
Credit cards: usually 2–3% on foreign cards; some (e.g. Charles Schwab debit, certain Capital One cards) charge no foreign-transaction fee.
Multi-currency accounts (Wise, Revolut): hold several currencies, convert at good rates, and spend on the card in Israel.
The habit to break: don't withdraw cash on a foreign card routinely. Each withdrawal stacks a foreign-transaction fee, an ATM fee, and a rate markup. Move money once, cheaply, via Wise or OFX into your Israeli account — then spend and withdraw locally.
Matching the tool to the task
1. A one-time large transfer. Moving your savings on aliyah: open the Israeli account first, then use Wise or OFX (not a bank wire), compare quotes, and send a small test transfer before the big one. Watch the rate and consider moving in stages.
2. Regular income from abroad. For a foreign salary or pension, receiving it abroad and transferring monthly via Wise usually beats a direct foreign deposit converted at the bank's rate — or simply spend on a Wise/Revolut multi-currency card.
3. Frequent small transfers. Wise or Revolut win here — low fixed costs and speed make them far better than bank wires for modest amounts.
4. Sending money back home. The same services work in reverse. Israeli banks charge heavily for outgoing wires, so keeping some funds in a foreign account can save constant back-and-forth conversion.
Israeli banking fees, and how the country actually pays
Fees to expect:
Monthly account fee ~₪10–30 (often waived for olim, or with a minimum balance/deposit).
Domestic transfers free or a shekel or two; outgoing international wires ~₪100–200 plus a poor rate.
A first Israeli credit card can take 6–12 months to build — expect a debit card first.
How Israel actually pays:
Bit — the instant phone-to-phone payment app, used everywhere; needs an Israeli card.
Apple Pay / Google Pay — widely accepted, once you have an Israeli card.
Cash — still handy for small vendors, markets and tips; paper cheques are now rare.
One practical detail: your IBAN is what the world needs to pay you. Israeli accounts use an IBAN (IL + bank code + branch + account). To receive international transfers, give the full IBAN, the SWIFT/BIC code, the bank name, and your name exactly as it appears on the account.
Smart practice: planning, tax, and safety
Planning. Don't rush to convert everything — keep an emergency buffer in an accessible currency, watch the rate (XE.com or a Google alert), and move money in tranches to average out exchange-rate swings.
Tax. Israeli residents must report foreign accounts over certain thresholds — even during the oleh exemption period, when the income itself may be tax-free. US citizens must also report Israeli accounts to the IRS (FBAR/FATCA). Keep your transfer records for tax documentation.
Security. Stick to regulated, well-known services; double-check the Israeli IBAN before any large transfer; never share bank login details; and monitor both your foreign and Israeli accounts.
Red flags worth walking away from: "guaranteed" rates with "no fees" (the cost is hidden in the rate), unlicensed money changers, transfers routed through individuals, anything unregulated, and pressure to send money immediately. If a rate looks too good to be true, it is.
A first-year plan that works
Month 1 — Get set up. Open an Israeli account on an oleh package, run a small test transfer via Wise ($500–1,000), and set up online and mobile banking.
Months 1–3 — Settle in. Transfer living expenses via Wise as needed, keep major savings in a stable currency until you've found your feet, and start building toward an Israeli credit card.
First year — Move strategically. Transfer larger amounts when the rate is favourable, build a relationship with your bank for future needs (a mortgage, say), and keep some assets abroad for diversification.
Quick reference — what to use when:
NeedUseLarge one-time transfer ($10k+)OFX or WiseRegular monthly transfersWiseDaily spendingIsraeli debit/credit card or BitCash exchangeA licensed money changer (negotiate)Keeping foreign income accessibleA Wise multi-currency account
Move money once, and move it cheaply
The core habits are simple: open the right account on an oleh package, use Wise or OFX rather than bank wires for anything crossing a border, spend on Israeli cards and Bit day to day, and keep an eye on the rate before large moves.
The one rule that saves the most: compare the shekels actually delivered, not the advertised fee. Banks hide a 2–4% margin in the exchange rate; specialist services don't. On a single large transfer that difference can be hundreds of dollars — over a whole move, thousands.
If you want help choosing a bank, sequencing your transfers, or working out the cheapest way to bring your savings over — that's exactly the kind of thing we help with, free, for every oleh.
Olim Advice — free advice for every oleh. Guides, checklists and one-to-one help for olim making aliyah to Israel. Visit olimadvice.com.
General information, not financial advice.