The Fee That Surprises Every New Oleh
One of the first financial shocks for olim is discovering that Israeli banks charge fees for almost everything. The Hebrew word for commission or fee is עמלה (Amlah) - and you will see it everywhere on your bank statements. Understanding what you're being charged, and why, is the first step to keeping more of your money.
The good news: as a new oleh, you can avoid most fees during your first 1-2 years with a properly negotiated oleh package. But packages expire, and knowing the fee structure helps you plan ahead.
What is the monthly account maintenance fee?
Most Israeli bank accounts carry a monthly maintenance fee (called "dmei nihul" or account management fee). This is charged regardless of activity:
- Standard accounts: 15-30 NIS per month
- With oleh package: Waived for the package duration
- Digital bank accounts (Pepper, One Zero): 0 NIS
Some banks also charge a separate fee for credit card maintenance (5-15 NIS/month). Ask specifically whether your oleh package covers both the current account and the credit card.
How much do ATM withdrawals cost in Israel?
Cash משיכה (Meshicha) (withdrawal) fees depend on whose ATM you use:
- Your own bank's ATM: Usually free, or 1-2 NIS
- Another bank's ATM: 3-6 NIS per withdrawal
- Israel Post (Doar Yisrael) ATMs: Available to all banks, typically 3-5 NIS if not your own bank
- Airport or hotel ATMs: Can be 8-15 NIS, avoid these
Israel is becoming increasingly cashless - you can pay by credit card or phone tap (Bit, PayBox) almost everywhere. Reducing ATM visits is one of the easiest ways to cut fees.
What do standing orders and direct debits cost?
Setting up הוראת קבע (Hora'at Keva) (standing orders) is free or very cheap - typically 1-2 NIS per setup. The ongoing monthly processing of a standing order may incur a small fee (0.5-1.5 NIS per payment) depending on your bank and package. These add up if you have many recurring payments, so check the terms.
What are the fees for international wire transfers?
This is where fees can become significant. Sending or receiving money internationally involves multiple charges:
- Outgoing international transfer (העברה בנקאית): 15-60 NIS flat fee, plus a foreign exchange spread
- Incoming international transfer: 10-30 NIS receiving fee
- SWIFT correspondent bank fees: The sending bank may charge an additional 15-25 USD regardless of Israeli bank fees
- Currency conversion spread: 1-3% above the mid-market rate (this is often the biggest hidden cost)
For large transfers, the spread costs far more than the flat fees. A 1.5% spread on a $50,000 transfer is $750. Services like Wise or Revolut typically charge 0.3-0.5%, saving you hundreds of dollars on large transfers. We cover this in detail in the Pre-Aliyah money transfer articles.
How does currency conversion cost you?
Whenever you pay in a foreign currency (using your Israeli card abroad, or shopping on foreign websites), your bank converts the amount to NIS. The conversion uses an exchange rate that includes a markup, typically 1.5-3% above the interbank rate. Some credit cards offer better rates - ask specifically about foreign transaction fees when choosing your card.
What check-related fees should you know?
Physical checks are less common than they used to be, but some landlords still require a deposit of post-dated checks. Fees to know:
- Issuing a check: 1-3 NIS per check (first book often free with oleh package)
- Depositing a check: 0.5-2 NIS
- Bounced check (check returned): 30-80 NIS, plus serious credit implications - never issue a check you're not sure will clear
How can you minimize your bank fees?
- Negotiate your oleh package actively - aim for 18-24 months, not the default 12
- Withdraw cash less frequently and in larger amounts - one 500 NIS withdrawal costs the same as five 100 NIS ones
- Use your own bank's ATMs - download their ATM locator app
- Go paperless - printed statements cost 5-10 NIS/month, switch to digital immediately when you open the account
- Use Wise or similar for large international transfers - bank wire fees are rarely competitive for significant amounts
- Review your monthly statement - look for the fees section (usually at the bottom) and flag anything unexpected
- Set a calendar reminder when your oleh package expires - this is when to consider switching to a digital bank or renegotiating
What should you do when your oleh package expires?
When your oleh package ends, you have three options: renegotiate with your current bank (possible, especially if you have a mortgage or investments with them), move your main account to a digital bank where fees are minimal, or stay on the standard tariff and accept the costs. Most long-term olim end up choosing a digital bank for day-to-day banking. In the next article, we'll look at exactly how those work.
Israeli banks charge per-action fees (amlah) for almost everything: a monthly account maintenance fee of 15-30 NIS, ATM withdrawals (free at your own bank, 3-6 NIS elsewhere), standing-order processing, checks, and international wires. Your oleh package waives most of these for the first 1-2 years, so note its exact expiry date. The biggest hidden cost is the currency conversion spread of roughly 1.5-3% above the mid-market rate, which on large transfers far exceeds any flat fee. To minimize fees, negotiate a longer oleh package, use your own bank's ATMs, go paperless, use a service like Wise for large international transfers, and switch to a digital bank such as Pepper or One Zero (0 NIS monthly fee) once your package expires.
A standard Israeli bank account carries a monthly maintenance fee (dmei nihul, or account management fee) of 15-30 NIS, charged regardless of how much you use the account. With an oleh package it is waived for the package duration, and digital bank accounts such as Pepper and One Zero charge 0 NIS. Some banks also add a separate credit card maintenance fee of 5-15 NIS per month, so ask specifically whether your oleh package covers both the current account and the credit card.
It depends on whose ATM you use. Withdrawing from your own bank's ATM is usually free or 1-2 NIS. Another bank's ATM costs 3-6 NIS per withdrawal, and Israel Post (Doar Yisrael) ATMs are open to all banks but typically charge 3-5 NIS if it is not your own bank. Airport and hotel ATMs can run 8-15 NIS, so avoid them. Because one 500 NIS withdrawal costs the same as five 100 NIS ones, withdraw less frequently in larger amounts, and use your own bank's ATMs to keep these fees down.
A properly negotiated oleh package waives most fees during your first 1-2 years, including the monthly account maintenance fee and often the first checkbook. Packages typically default to 12 months, but you can negotiate for 18-24 months, so push for the longer term. The key is to set a calendar reminder for the exact expiry date, because that is when the standard tariff kicks in and you should decide whether to renegotiate, switch to a digital bank, or accept the standard costs.
International transfers carry several charges. An outgoing wire is a 15-60 NIS flat fee plus a foreign exchange spread, and an incoming transfer has a 10-30 NIS receiving fee. SWIFT correspondent banks may add a further 15-25 USD regardless of the Israeli bank's fees. The largest and most hidden cost is the currency conversion spread of 1-3% above the mid-market rate. For a $50,000 transfer, a 1.5% spread is $750, whereas services like Wise or Revolut typically charge 0.3-0.5%, saving hundreds of dollars on large transfers.
Whenever you pay in a foreign currency, such as using your Israeli card abroad or shopping on foreign websites, your bank converts the amount to NIS using an exchange rate that includes a markup, typically 1.5-3% above the interbank rate. This markup is separate from any flat fee. Some credit cards offer better rates, so ask specifically about foreign transaction fees when choosing your card.
Setting up a standing order (hora'at keva) is free or very cheap, typically 1-2 NIS per setup, but the ongoing monthly processing may incur a small fee of 0.5-1.5 NIS per payment depending on your bank and package, which adds up across many recurring payments. For checks, issuing one costs 1-3 NIS (the first book is often free with an oleh package) and depositing one costs 0.5-2 NIS. A bounced check costs 30-80 NIS plus serious credit implications, so never issue a check you are not sure will clear.
Negotiate your oleh package actively and aim for 18-24 months rather than the default 12. Withdraw cash less often in larger amounts and stick to your own bank's ATMs. Go paperless immediately, since printed statements cost 5-10 NIS per month. Use Wise or a similar service for large international transfers, where bank wire fees are rarely competitive. Review your monthly statement (the fees section is usually at the bottom) and flag anything unexpected, and set a reminder for when your oleh package expires so you can renegotiate or switch to a digital bank.
