Bank Transfers & Currency Exchange in

Israel - Complete Guide

Opening an Israeli Bank Account

Major Israeli Banks

Big Five Banks:

**1.        Bank Hapoalim **- Largest bank, good English support

**2.        Bank Leumi **- Second largest, extensive branch network

**3.        Mizrahi Tefahot **- Growing rapidly, good service reputation

**4.        Discount Bank **- Competitive rates

**5.        First International Bank (FIBI) **- Strong international services

Digital/Alternative Options:

ï           **Pepper **- Digital-only bank, lower fees

ï           **One Zero **- Digital bank with competitive rates

ï           **Max **- Digital banking option

Documents Needed to Open Account

For new immigrants (Olim):

ï           Passport

ï           Teudat Oleh (immigrant certificate) or Teudat Zehut (Israeli ID)

ï           Proof of address (rental contract, utility bill)

ï           Some banks require Israeli phone number

Benefits for Olim:

ï           Many banks waive monthly fees for first 1-2 years

ï           Special new immigrant packages

ï           English-speaking service

ï           Some waive minimum balance requirements initially

Typical account features:

ï           Checking account (Cheshbon Avir)

ï           Debit card (Kartis Ashrai/Chiyuv)

ï           Israeli credit card (takes time to build credit history)

ï           Online banking

ï           Mobile app

Transferring Money to Israel

Option 1: Traditional Bank Wire Transfers (SWIFT)

How it works:

ï           Transfer from foreign bank to Israeli bank

ï           Usually takes 2-5 business days

Costs:

ï           **Sending bank fee: **$20-50 per transfer

ï           **Receiving bank fee: **Often 0.25-0.5% of amount or flat fee

ï           **Exchange rate markup: **Banks typically add 2-4% margin on exchange rate

ï           **Intermediary bank fees: **May occur with multi-bank routing

When to use:

ï           Large amounts (reduces percentage impact of fixed fees)

ï           When speed isn't critical

ï           One-time major transfers

Option 2: Specialized Transfer Services (HIGHLY RECOMMENDED)

Popular services for Israel transfers:

Wise (formerly TransferWise):

ï           Uses mid-market exchange rate

ï           Transparent fees (typically 0.4-1% depending on amount/currency)

ï           Fast (often 1-2 days)

ï           Can send to Israeli bank account

ï           Very popular with new immigrants

ï           App and website interface

Revolut:

ï           Competitive exchange rates

ï           Fast transfers

ï           Multi-currency accounts

ï           Good for frequent smaller transfers

OFX (formerly OzForex):

ï           Good for larger amounts ($10,000+)

ï           No transfer fees on larger amounts

ï           Competitive rates

ï           Dedicated service

Western Union/MoneyGram:

ï           Fast but expensive

ï           Higher fees and worse rates

ï           Good for emergencies only

Israeli-specific services:

ï           Some Israeli services specialize in US-Israel transfers

ï           Check with your bank for partnerships

Option 3: Peer-to-Peer (P2P) Platforms

How it works:

ï           Match people needing opposite currency exchanges

ï           Can get better rates by avoiding bank system

Popular options:

ï           CurrencyFair

ï           Remitly (more for remittances)

Cost Comparison Example

Transferring $10,000 to Israel:

Assuming ₪3.80 = $1 mid-market rate

Currency Exchange Options

1.  Bank Exchange

Pros:

ï           Convenient

ï           Secure

ï           No cash limits

Cons:

ï           Poor exchange rates (typically 2-4% markup)

ï           May have fees

ï           Not competitive

When to use:

ï           Small amounts for convenience

ï           When you need physical cash

2.  Licensed Money Changers (Chalifaniot)

Common in Israel:

ï           Found in major cities, malls, tourist areas

ï           Must display license

ï           Negotiate rates for large amounts

Pros:

ï           Better rates than banks

ï           Can negotiate

ï           Immediate cash

Cons:

ï           Safety concerns with large cash amounts

ï           Need to compare rates

ï           Limited to cash transactions

Popular chains:

ï           Change Spot

ï           Change Place

ï           Various independent operators

3. ATM Withdrawals

Using foreign card in Israeli ATMs:

ï           Your bank charges foreign transaction fee (1-3%)

ï           ATM may charge withdrawal fee (₪15-30)

ï           Exchange rate includes markup

Israeli account with foreign card:

ï           Once you have Israeli account, cheaper to transfer online first

ï           Then withdraw from Israeli account

4.  Credit Card Purchases

Foreign credit card in Israel:

ï           Typically 2-3% foreign transaction fee

ï           Exchange rate with modest markup

ï           Convenient for daily purchases

**Tip: **Some cards (like Charles Schwab debit, Capital One credit) have no foreign transaction fees

5.  Multi-Currency Accounts

Wise Account:

ï           Hold multiple currencies

ï           Convert at good rates

ï           Debit card works in Israel

ï           Popular with new immigrants

Revolut:

ï           Similar to Wise

ï           Good exchange rates

ï           Travel-friendly

Specific Scenarios & Best Practices

Scenario 1: Moving to Israel - One-Time Large Transfer

Best approach:

1.        Open Israeli bank account first
2.        Use Wise or OFX for large transfer (saving thousands in fees)
3.        Compare quotes from multiple services
4.        Transfer in stages if nervous (first small test transfer)
5.        Timing: Monitor exchange rates, consider transferring when favorable

Bringing cash:

ï           Can bring up to $80,000 without declaring

ï           Over $80,000 must declare at customs

ï           Not recommended for large sums (security risk)

Scenario 2: Regular Income from Abroad

If receiving salary/pension from overseas:

Option A: Direct deposit to Israeli account

ï           Set up foreign ACH/wire to Israeli account

ï           Bank will convert at their rate (expensive)

Option B: Foreign account → Wise → Israeli account

ï           Receive in foreign account

ï           Transfer monthly via Wise

ï           Better rates but extra step

Option C: Keep foreign account, use Wise card

ï           Spend directly with multi-currency card

ï           Good for temporary arrangements

Scenario 3: Frequent Small Transfers

Best approach:

ï           Use Wise or Revolut

ï           Lower fees make sense for smaller amounts

ï           Faster than bank wires

Scenario 4: Sending Money Back Home

From Israel to abroad:

ï           Same services work in reverse (Wise, OFX)

ï           Israeli banks charge high fees for outgoing wires

ï           Consider keeping some money in foreign account to avoid back-and-forth

Israeli Banking Costs to Know

Monthly account fees:

ï           ₪10-30/month (often waived for Olim initially)

ï           May be waived with minimum balance or monthly deposits

Transaction fees:

ï           Domestic transfers: Often free or ₪1-3

ï           International transfers: ₪100-200 plus poor exchange rate

ï           Checks: Becoming rare, fees apply

ï           ATM withdrawals (other banks): ₪2-5

Credit card annual fees:

ï           ₪0-500 depending on card type

ï           First credit card as new immigrant may take 6-12 months

Important Tips for New Residents

Financial Planning

**1.        Don't rush to transfer everything **- Keep emergency funds in accessible currency

**2.        Watch exchange rates **- Use Google Alerts or XE.com to track rates

**3.        Transfer in tranches **- Dollar-cost averaging reduces exchange rate risk

**4.        Keep some foreign currency **- Useful for foreign expenses, travel

Tax Considerations

**5.        Report foreign accounts **- Israeli residents must report foreign bank accounts over certain thresholds (even if income exempt during Oleh period)

**6.        FATCA compliance **- US citizens must report Israeli accounts to IRS

**7.        Keep transfer records **- For tax documentation

Security & Fraud Prevention

**8.        Use reputable services only **- Stick to regulated, well-known companies

**9.        Verify account details **- Double-check Israeli IBAN before large transfers

**10.     Beware of scams **- Never share bank login details

**11.     Monitor accounts **- Check for unauthorized transactions

Practical Considerations

**12.     Set up Israeli Apple Pay/Google Pay **- Need Israeli credit card

**13.     Bit payment system **- Israeli instant payment system, widely used

**14.     Paper checks rare **- Most payments are electronic or Bit

**15.     Cash still used **- Keep some shekels for small vendors, tips, markets

Israeli Bank Account Numbers (IBAN)

**Format: **IL## #### #### #### #### ####

Understanding your account:

ï           Bank code (3 digits)

ï           Branch code (3 digits)

ï           Account number (varies)

For receiving international transfers, provide:

ï           Full IBAN

ï           SWIFT/BIC code

ï           Bank name and address

ï           Your name exactly as on account

Recommended Strategy for New Immigrants

First Month:

1.        Open Israeli bank account at major bank with Oleh package
2.        Transfer small test amount via Wise ($500-1,000)
3.        Set up online banking and app

**First 3 Months: **4. Transfer living expenses as needed via Wise 5. Keep major savings in stable currency until settled 6. Build credit history for Israeli credit card

**First Year: **7. Transfer larger amounts strategically based on rates 8. Establish relationship with bank for future needs (mortgage, etc.) 9. Consider keeping some assets abroad for diversification

**Ongoing: **10. Use Wise/OFX for all international transfers 11. Pay with Israeli cards for daily expenses 12. Monitor both foreign and Israeli accounts

Quick Comparison: What to Use When

ï           **Large one-time transfer ($10,000+): **OFX or Wise

ï           Regular monthly transfers: Wise

ï           **Emergency transfer: **Western Union (expensive but fast)

ï           **Daily spending: **Israeli debit/credit card

ï           **Physical cash exchange: **Licensed money changer (negotiate rate)

ï           **Small cash amounts: **Bank exchange (convenience)

ï           **Keeping foreign income accessible: **Wise multi-currency account

Red Flags to Avoid

 Services promising "guaranteed" rates with no fees (hidden in exchange rate) Unlicensed money changers Cash transfers through individuals Services without proper regulation/ insurance Too-good-to-be-true exchange rates Pressure to transfer immediately

Updated on: 02/02/2026