Which bank to choose in Israel in 2026: the comparison for olim, residents and non-residents
Seven banks, three profiles (oleh, resident, non-resident) and one real question: where will you pay the least and fight the least? Answers by profile, with the numbers.
The short version
For an oleh: Hapoalim, Leumi or Discount, with the olim package (fees waived the first year, in writing) and an English or French-speaking branch; Leumi if you want to open before arrival. For a non-resident buying property: Leumi, in a branch used to foreign files. For a resident comfortable with their phone: One Zero or Pepper as main or second account, with no account fees. In every case, do not let the bank convert your currency: fund the account in shekels through an online service or a broker, and keep a Revolut card for the first weeks.
The comparison
| Bank | Type | Languages | Olim | Non-residents | Digital | Best for |
|---|---|---|---|---|---|---|
| Bank Hapoalim Largest branch and ATM network | Major bank | Strong English, French in some branches | Olim package: fees waived the first year (get it in writing) | Yes, in branch, case by case | Full app + Bit (P2P payments) | Oleh who wants a branch everywhere, employees |
| Bank Leumi Dense network, digital-leaning | Major bank | Olim service in English, French-speaking branches in Jerusalem, Netanya, Raanana | Dedicated olim service, remote opening possible | Yes, the most practised non-resident procedure | Leumi app + Pepper (mobile-only subsidiary) | Non-residents, olim opening before arrival |
| Discount Bank Good network | Major bank | English interface, English and French advisors in aliyah cities | Olim offers, competitive fees | Yes, branch dependent | Decent app, PayBox | Account fees, personal service |
| Mizrahi-Tefahot Good network | Major bank | Varies | Standard | Yes | Decent app | Mortgages (largest home lender), olim loan (zakaut) |
| First International (FIBI) Smaller network | Mid-size bank | Varies | Standard | Yes | Decent app | Self-employed, private banking, mortgages |
| One Zero No branches | Digital bank | Hebrew and English | No specific olim offer | No (residents with teudat zehut) | Excellent, tiered subscriptions, no FX fee on card | Digital-first residents, savings and investing |
| Pepper (Leumi) No branches | Digital bank | Hebrew, English support | Near-zero fees | No | Very good | Young professionals, fee-free second account |
The first five are full-service banks (branches, chequebook, mortgages, foreign currency); One Zero and Pepper are mobile-only, with no branches, for residents holding a teudat zehut. Olim offers and waivers change every year: get them in writing and note the end date.
Which bank for whom
New immigrant (oleh hadash)
Three things matter more than fees: a branch that speaks your language near you (Jerusalem, Netanya, Raanana, Modiin and Beit Shemesh have English-speaking branches at Leumi, Hapoalim and Discount), the olim package (account fees and often the card waived for 12 months) and the ability to receive the sal klita, paid only into an active Israeli account. Hapoalim wins on network, Leumi on remote opening, Discount on in-person service. Open at one of the three, then add a digital bank after a year if fees reappear.
Settled resident
Once you hold a teudat zehut and an Israeli salary, digital banks become the best value: One Zero (tiered subscriptions, no FX fee on the card, built-in savings and trading) or Pepper (near-zero fees, English support). Many residents keep the major bank for the mortgage and chequebook and run daily life on the digital bank.
Non-resident buying or renting out property
The non-resident account (cheshbon toshav chutz) is used to pay the developer or seller, collect rent and pay arnona. Leumi has the most practised procedure; Hapoalim and Discount do it too, depending on the branch. Expect a one-hour appointment, a complete source-of-funds file and sometimes a refusal at a branch that is not used to it: insist on a branch in a neighbourhood with foreign investors. Details in the non-residents section.
Self-employed and companies
An osek murshe opens a separate business account (recommended, not mandatory for an osek patur). FIBI and Discount are popular with freelancers; digital banks do not yet offer a full business account. The choice of status itself belongs to the tax guides.
Fees, line by line
| Item | Amount | What to know |
|---|---|---|
| Account fee (basic track) | ~₪10 / month | Capped by the Bank of Israel, must be requested; covers a limited number of teller transactions. |
| Account fee (extended track) | ₪15–30 / month | Usually waived 12 months for olim, then negotiable. |
| Bank card | ₪0–20 / month | Issued by Isracard, Max or Cal; monthly deferred debit by default. |
| Out-of-network ATM | ₪5–8 | Free at your own bank’s ATMs. |
| Incoming international wire in foreign currency | 0.1–0.25%, min ₪20–60 | Near zero if the wire arrives in shekels (Wise, broker). |
| Currency conversion | 1–3% margin | The most expensive item. Negotiable from ₪50,000; otherwise convert elsewhere. |
| Overdraft (“minus”) | 7–12% / year | Set the ceiling at opening. |
| Chequebook | ₪50–100 | Still requested by some landlords for rent and deposit. |
The item comparisons forget: currency conversion. On $50,000 converted on arrival, a 2% margin is $1,000; ten years of account fees do not cost that. The transfer comparison shows the real cost of each channel for your amount.
Opening the account: documents and steps
- Book an appointment and ask for an advisor in your language; without one you get whoever is free, not necessarily an English speaker.
- Bring: teudat zehut (temporary accepted) or teudat oleh, passport; proof of address even temporary (lease, bill, host letter); ₪100–500 opening deposit; for Americans, Social Security number and W-9; for a joint account, both spouses.
- Ask for the olim package and the exact length of the waiver, in writing. Ask for the basic track too if you make few transactions.
- Set the overdraft ceiling (zero if you want no “minus”) and the card limit.
- Activate the app and access code before leaving the branch; the card arrives within one to two weeks.
- File the sal klita payment form (Israeli bank details) with the Ministry of Aliyah if you are an oleh.
Non-residents: what the bank will ask
Since anti-money-laundering rules tightened, opening an account without being resident is still possible but needs a complete file: passport, proof of address abroad, tax residency certificate or latest tax return, source of funds (bank statements, sale contract, inheritance letter), purpose of the account (property purchase, rent), and for Americans the W-9. Some banks require a minimum deposit or charge more for the account. Refusals are common in branches without experience of foreigners; Leumi has a dedicated service, and branches in Tel Aviv, Jerusalem and Netanya handle these files all year.
On the tax side, an Israeli account held by a US person counts toward the FBAR threshold and Form 8938, as explained in the US–Israel guide; Israeli interest is taxed in Israel by withholding, with a credit at home under the treaty.
Six common mistakes
- Letting the bank convert your dollars. 1 to 3% margin, without asking you. Fund the account in shekels.
- Not getting the olim waiver in writing. In month thirteen the fees return; without a record, nothing to negotiate with.
- Accepting the default overdraft. A 10% “minus” quickly becomes a lifestyle.
- Walking into a branch without an appointment. You lose a morning and get an advisor who does not speak your language.
- Choosing a digital bank before the teudat zehut. It will refuse you; start with a major bank.
- Forgetting the account on your home return. FBAR and Form 8938 for Americans, every year.
Frequently asked questions
What is the best bank in Israel for a new immigrant?
For an oleh, the three major banks (Hapoalim, Leumi, Discount) are the safe choices: olim service, first-year fee waiver, English or French-speaking branches in aliyah cities. Leumi is the most convenient to open before arrival or as a non-resident; Hapoalim has the most branches; Discount stands out on fees and in-person service. Digital banks (One Zero, Pepper) are excellent as a second account once you have a teudat zehut.
Can I open an Israeli bank account as a non-resident?
Yes. The major banks open non-resident accounts (toshav chutz) by appointment, with a passport, proof of address abroad, source-of-funds documents and, for Americans, a W-9. Not every branch does it: ask for a branch used to non-residents (Leumi in Tel Aviv, Jerusalem, Netanya). The account is mostly used to buy property or collect rent.
How much does a bank account cost in Israel?
Between ₪10 and ₪30 a month in account fees, usually waived the first year for olim. Since 2014 any customer can ask for the Bank of Israel “basic track” (maslul basisi), capped at around ₪10 a month for a limited number of transactions. Add the card (varies), out-of-network ATM withdrawals (₪5–8), international transfers (₪15–50 plus FX margin) and above all the currency margin (1–3%).
Which documents do olim need to open an account?
Temporary teudat zehut or teudat oleh (a foreign passport is accepted at some banks), proof of address even temporary (lease, utility bill, host letter), an opening deposit of ₪100–500, and for US citizens a Social Security number and a W-9. For a joint account both spouses must be present.
Should I open the account before aliyah?
Leumi and increasingly Hapoalim let olim open remotely through their olim services. The point: receive the sal klita (absorption basket) from day one, since it is only paid into an active Israeli account. Otherwise open in your first days in Israel, with a Revolut card covering expenses in the meantime.
Do Israeli banks accept Americans?
Yes, with a W-9 and FATCA reporting: the bank reports the account to the IRS. Some banks restrict investment products for US customers. Nothing prevents a checking account.
What is the “minus”?
The authorised overdraft, almost universal in Israel, at 7 to 12% interest. Many Israelis live in permanent “minus”. Set a low ceiling at opening, or zero, so you do not discover it on a statement.
Israeli bank card: debit or deferred?
The standard card is deferred debit: the month’s purchases are charged in one go on a fixed date, and instalments (tashlumim) are offered everywhere, sometimes with interest. The initial limit is about one month’s salary. Cards are issued by Isracard, Max or Cal, not always by the bank itself.
What about Esh Bank, the new bank?
Esh obtained a banking licence but its public launch was postponed several times and an acquisition by Isracard was reported in 2025. Until it serves retail customers with a stable public offer, it is not in this comparison.
How we work
Every figure on this page is checked against the official source listed at the bottom and dated. When a schedule changes, the page is updated within days of the official publication. Our methodology.
Sources
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