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.
Monthly Account Maintenance
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.
ATM Withdrawals
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
- Post Office (DO'AR Israel) 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.
Standing Orders and Direct Debits
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.
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.
Currency Conversion
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.
Check-Related Fees
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
Practical Tips to Minimize 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 to Do When Your 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.