Israel (IL)
Start-Up Nation with world-class tech ecosystem, rich ancient history, stunning Mediterranean beaches, and a vibrant expat and immigrant community.
Banking in Israel
Recommended banks, payment culture and credit score basics.
Israel's banking sector is highly concentrated, with 5 major commercial banks dominating over 90% of the market. The Bank of Israel (Banka Yisrael) is the central bank and regulator. Accounts are denominated in New Israeli Shekels (NIS / ILS). Opening an account as a new arrival requires patience — the process typically takes 1–4 weeks for in-branch applications. Digital banks (Pepper, One Zero) offer a faster alternative. Israelis use Bit (ביט) for P2P payments and Pango for parking — both are essential apps.
Recommended banks
Pepper (by Leumi)
EnglishMonthly fee: NIS 0 (free account)
Requirements: Israeli phone number, Teudat Zehut (Israeli ID) or valid passport with visa. Application via app. Faster than traditional branch process.
- + Fully digital — app-based, no branch visits required
- + English-language app available
- + Free account with no minimum balance
- + Good for new Olim who want quick account opening
- + Instant NIS transfers via Bit integration
- - Limited branch support
- - Cannot handle complex banking needs (business accounts, mortgages)
- - Some services require Teudat Zehut (not just passport)
Bank Leumi (בנק לאומי)
EnglishMonthly fee: NIS 0–35/month depending on account type
Requirements: Branch visit required. Passport + Teudat Zehut or work visa. Employment proof or financial statements. Process: 1–3 weeks.
- + One of Israel's two largest banks
- + International banking relationships and SWIFT transfers
- + English-speaking staff in Tel Aviv branches
- + Online banking in English
- + Good for salary accounts and mortgages
- - Branch visits required for major transactions
- - Slow account opening process for new immigrants
- - Fees can be opaque
Bank Hapoalim (בנק הפועלים)
EnglishMonthly fee: NIS 0–40/month
Requirements: Branch visit. Passport or Teudat Zehut. Employment contract or proof of income. 2–4 weeks for processing.
- + Largest bank in Israel — widest ATM network
- + Dedicated new immigrant (Olim) service teams at some branches
- + Solid international wire transfer capabilities
- + Good mobile app (Bank Hapoalim Poalim Online)
- - Branch-heavy — limited purely digital options
- - Customer service quality varies by branch
- - Slower to open than digital alternatives
Mizrahi-Tefahot (בנק מזרחי-טפחות)
Monthly fee: NIS 0–30/month; basic account free with qualifying conditions
Requirements: Branch visit required. Valid passport or Teudat Zehut (Israeli ID), proof of Israeli address, employment contract or income proof. For Olim Hadashim (new immigrants), Sochnut (Jewish Agency) documentation may facilitate faster opening. Processing: 1–3 weeks. Mizrahi-Tefahot is Israel's third-largest bank and the country's leading mortgage lender.
- + Israel's leading Mashkanta (mortgage) lender — best rates and most competitive terms for property purchase
- + Third-largest bank in Israel — solid branch network in Tel Aviv, Jerusalem, Haifa, and regional cities
- + Good for long-term residents planning to buy Israeli property
- + Competitive NIS savings and deposit products
- + Branch network includes dedicated Olim (immigrant) advisors at some locations
- - Limited English support at branches — Hebrew is the primary service language
- - Less internationally-oriented than Bank Leumi or Bank Hapoalim for SWIFT and foreign currency
- - Better suited to established residents or Olim than to new arrivals on work visas without Teudat Zehut
- - Digital banking app (Mizrahi-Tefahot Online) less polished than Pepper or One Zero
One Zero (Digital bank)
EnglishMonthly fee: NIS 0 — no monthly fee on any account tier
Requirements: Teudat Zehut (Israeli national ID) is required — not available to foreign nationals on work visa alone. Olim who have received their Teudat Zehut can apply via the One Zero app. Israeli phone number and selfie verification required. Fully app-based — no branch visit. One Zero is licensed by the Bank of Israel and launched in 2022 as Israel's first fully digital bank.
- + Best digital banking experience in Israel — fully English-language app available
- + No monthly fees on any account type
- + AI-powered financial management and spending insights
- + Instant NIS transfers via Bit integration
- + Visa debit card with Apple Pay and Google Pay support
- + Good for Olim who have received Teudat Zehut and want a modern digital alternative to traditional banks
- + Phone-based customer support available in English
- - Teudat Zehut required — foreign nationals on work visas without Israeli ID cannot open an account
- - Newer bank (est. 2022) — shorter track record than Leumi or Hapoalim; smaller product range
- - No physical branches — all banking via app and phone support
- - Business banking and mortgages not available — use Leumi or Mizrahi-Tefahot for these
- - Limited international wire transfer functionality compared to traditional banks
Payment culture
Credit and debit cards are dominant in urban Israel — Visa and Mastercard widely accepted. Israeli-specific cards: Isracard (ישראכרט), Cal (כאל), and Max (מקס) are the local card networks. Bit (ביט) is Israel's leading P2P payment app — the equivalent of Venmo or PayMe. Paybox is an alternative. Cash remains important at markets (Shuk), small businesses, and tipping. Cheques (Hamchaot) are used in some business and rental contexts — a bounced cheque is a criminal offence in Israel.
Cash access
ATMs widely available from all major banks across Israel including in smaller cities and petrol stations. Foreign cards work at most ATMs — select "charge in local currency" (ILS). Foreign card fees: NIS 10–20 per withdrawal plus your home bank's fees. Bank Hapoalim has the largest ATM network. Many ATMs also accessible at supermarkets (Shufersal, Rami Levy).
BDI Credit Score (BDI Coface)
Check your credit report via BDI Coface at bdi.co.il or through your bank. Request report online or at bank branch.
Free annual check: Free annual credit report available from BDI Coface. Identity verification required.
Israel's credit system (BDI — Bureau of Debt Information) tracks payment history on loans, mortgages, and debts — NOT utility or rent payments. New immigrants start with no credit history, which can make initial credit card and loan applications challenging. Build credit by getting a basic bank credit card and using it responsibly.
International transfers
Wise is excellent for international transfers — save 3–5% vs bank rates. Traditional bank SWIFT transfers available from all major banks: typically NIS 20–60 per transfer plus exchange rate margin. PayPal widely used for international e-commerce. Bank of Israel rules require documentation for transfers over USD 50,000.