What are the five major banks in Israel?
Israel's banking sector is dominated by five institutions. All five are regulated and supervised by the Bank of Israel, and can open a חשבון עובר ושב (Cheshbon Over VeShav) (current/checking account) for new olim. But they differ in meaningful ways:
- Bank Hapoalim - Israel's largest bank. Offers an English-language app and online portal, a dedicated "oleh desk" in major branches, and an oleh package that typically covers 12 months of fee waivers. Nationwide branch network.
- Bank Leumi - Israel's second largest bank and the parent company of the digital bank Pepper. Offers English-language service and an oleh package typically running 12-18 months. Leumi accounts can be paired with its Pepper digital platform.
- Bank Discount - Some branches have English-speaking staff, and its oleh package duration is broadly similar to Hapoalim's. Online banking is available, with English-language coverage varying across features.
- Mizrahi Tefahot - Israel's third largest bank, and the dominant lender in the mortgage market, which matters if you plan to buy property. English support is more limited outside major cities, and oleh packages typically require more negotiation.
- First International Bank of Israel (FIBI) - Israel's smaller, more boutique major bank, with less branch coverage than the larger banks.
What does an oleh package actually include?
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 do you negotiate an oleh bank package?
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.
Knowledge Check
What should be your primary criteria when choosing a bank as a new oleh?
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 for everyday spending. We'll cover digital options in detail in a later article.
How do you decide between the banks?
There is no single right answer. The banks differ on the factors covered above - English-language service, oleh-package terms, branch coverage, and mortgage lending - so the right fit depends on which of those matter most to you.
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.
Compare traditional banks in the Meidahon reviews
See fees, English-language service, oleh-package terms, and mortgage lending across Israel's major banks side by side, in an independent review by the Meidahon editorial team.
Compare the banks
Israel's five major banks (Hapoalim, Leumi, Discount, Mizrahi Tefahot, and FIBI) all open accounts for new olim and are supervised by the Bank of Israel. The deciding factors are English-language app support, the oleh fee-waiver package and what it costs once that package expires.
No. As of 2026 Israel has no statutory deposit-insurance scheme equivalent to the FDIC (US) or the FSCS (UK). There is no legislated per-account guarantee. Bank stability is instead underpinned by Bank of Israel supervision and a long-standing implicit government backing of the banking system, which has never been formally enacted into a deposit-insurance law.
The advertised package is typically 12 months of waived monthly and per-transaction fees, though some banks market 12 to 36 months. Branch managers have discretion, so asking competing banks for written terms first can push the waiver toward 18 to 24 months. The exact expiry date is typically confirmed in writing, because verbal promises are not enforceable once the package lapses.
For your first account a traditional branch bank is usually easier, since you can hand over documents and set up standing orders in person while you learn the system. Many olim later move to a hybrid setup: a traditional bank for the oleh package, salary deposits and mortgage eligibility, plus a fee-free digital bank for everyday spending. Digital banks in Israel are generally open to Israeli residents only, and which one fits is a separate comparison covered in the Meidahon reviews.
Mizrahi Tefahot is the dominant mortgage lender in Israel, so olim planning a home purchase often hold their mortgage relationship there. Its English-language support can be more limited outside major cities, which is why some olim keep everyday banking at a different bank.
