The Big Five Israeli Banks
Israel's banking sector is dominated by five institutions. All five are regulated by the Bank of Israel, offer FDIC-equivalent deposit protection, and can open a חשבון עובר ושב (Cheshbon Over Ve'shav) (current/checking account) for new olim. But they differ in meaningful ways:
- Bank Hapoalim — Israel's largest bank. Strong English-language app and online portal. Dedicated "oleh desk" in major branches. Oleh package typically covers 12 months of fee waivers. Good branch network nationwide.
- Bank Leumi — Second largest. Parent company of the digital bank Pepper. English service has improved significantly. Oleh package is competitive at 12-18 months. Worth asking about the Leumi-Pepper dual setup.
- Bank Discount — Known for responsive customer service. Some branches have English-speaking staff. Oleh package duration is similar to Hapoalim. Online banking is functional but lags behind Hapoalim and Leumi in English UX.
- Mizrachi-Tefahot — Israel's third largest. Dominant in the mortgage market, which matters if you plan to buy property. English support is more limited outside major cities. Oleh packages exist but require more negotiation.
- First International Bank of Israel (FIBI) — Smaller, more boutique. Historically popular with Anglo olim due to attentive service. Less branch coverage but strong reputation in the English-speaking community. Worth considering if you value a more personal relationship.
What an Oleh Package Actually Includes
Every bank offers a special package for new immigrants, but the contents vary and are often negotiable. A standard oleh package typically includes:
- Fee waivers for 12-36 months — covering monthly maintenance and many per-transaction עמלה (Amlah) (fees)
- Free checks — a book of 20-40 checks at no cost (increasingly less used, but still required for rent deposits)
- Reduced international wire fees — important if you're still moving money from abroad
- Free debit card and sometimes a credit card with no annual fee in year one
- Welcome bonus at some banks — a small cash deposit or gift card
The key phrase to use: "אני עולה חדש/חדשה ואני רוצה לפתוח חשבון עם חבילת עולה" (I'm a new oleh/ola and I want to open an account with the oleh package). Say this at the start of the conversation — before the banker begins entering your details.
How to Negotiate
Banks compete for olim. You have more leverage than you think, especially in the first few years. Here's how to make the most of it:
- Compare packages in writing before committing. Ask each bank to email you the current oleh package terms. This gives you leverage — "Hapoalim offered me 18 months, what can you do?"
- Ask for extended fee waivers. The advertised package is often 12 months, but 18-24 months is achievable if you push. Branch managers have discretion.
- Bring proof of incoming funds. If you're transferring money from abroad, mentioning it (even roughly) signals that you're a valuable customer.
- Ask about international transfer rates. If you'll be wiring money from the US, UK, or elsewhere, ask what exchange rate spread they apply. This can cost you more than the monthly fee over time.
- Get everything in writing. Ask for a printout or email confirming the package terms, including expiry date.
Branch Banking vs. Digital-First
For your first Israeli account, a traditional bank with a physical branch has real advantages: you can walk in with documents, sort out problems face-to-face, and set up הוראת קבע (Hora'at Keva) (standing orders) in person. This matters when you're new and unfamiliar with Israeli banking terminology.
That said, many experienced olim end up using a hybrid approach: a traditional bank for the oleh package benefits (especially for salary deposits and government benefit payments), and a digital bank like Pepper or One Zero for everyday spending. We'll cover digital options in detail in a later article.
Our Recommendation for Most Olim
There's no single right answer, but the most common advice in the Anglo olim community is:
- If English support matters most: Bank Hapoalim or Bank Leumi
- If you want a smaller, more personal experience: FIBI
- If you plan to buy property soon: Mizrachi-Tefahot (for their mortgage expertise)
- After your oleh package expires: Seriously consider switching or supplementing with Pepper or One Zero
Whichever bank you choose, the oleh package negotiation is worth doing carefully. In the next article, we'll break down exactly what fees to watch for — and how to minimize them.