The Fee That Surprises Every New Oleh
Israeli banks charge a fee, an עמלה (Amlah), per action: every transfer, cheque, teller visit and ATM withdrawal shows up as its own line on your statement. The Bank of Israel puts the average cost of running a household current account with a debit card at NIS 31.6 a month (2025 data)4, and caps the basic fee track every bank must offer at NIS 103. If you banked in the US or the UK you have probably never paid either, which is why this is the first financial shock for most olim.
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:
Two anchors are worth knowing before you negotiate anything. First, the Bank of Israel's periodic report on the prices of common banking services for households puts the average cost of running a current account together with holding a debit card, in a household account, at NIS 31.6 a month in 2025, up from NIS 29.1 a month on average in 20244. Second, since April 2014 the banks have had to offer flat-rate fee tracks alongside per-action pricing, and the price of the basic track - up to one teller action and up to ten direct-channel actions a month - is capped at NIS 103.
With an oleh package the maintenance fee is typically waived for the package duration. Ask specifically whether your package covers both the current account and the credit card, and get the answer in writing.
How much do ATM withdrawals cost in Israel?
Cash משיכה (Meshicha) (withdrawal) fees depend on whose ATM you use:
The price depends on whose machine you use, and it is one of the actions counted inside a fee track. Rather than quote a number that goes stale, do the thing the regulator built for you: the Bank of Israel's fee-track calculator prices your actual monthly pattern of actions against the basic track, the extended track and per-action pricing, at every bank, so you can see which is cheapest for you. You can switch billing method by giving the bank notice, and the change takes effect on the 1st of the following month.
Israel is increasingly cashless and card or phone payments are accepted almost everywhere, so reducing ATM visits is still one of the easiest ways to cut what you pay.
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:
- The stated transfer fee (העברה בנקאית): charged on the outgoing transfer, and a separate receiving fee on money coming in. Both are in your bank's tariff sheet
- Correspondent (intermediary) bank fees inside the SWIFT chain: charged by banks in the middle, not by yours
- The foreign-exchange margin: the gap between the rate you are given and the real market rate. On a large transfer this is usually far bigger than every flat fee combined, and it is the one that does not appear as a line item
The Bank of Israel report attributes part of the recent rise in household banking costs specifically to more foreign-currency transactions and withdrawals by the public - which is exactly the cost most people do not see. Compare offers on the shekels actually delivered, not on the headline fee. We cover how to do that in the 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 over the interbank rate. That markup is a real cost and it does not appear as a separate line item, which is why the Bank of Israel report singles out growth in foreign-currency transactions and withdrawals as a driver of rising household banking costs. Ask specifically about foreign transaction fees and the conversion rate when choosing a card, and compare the shekels actually charged rather than the headline fee.
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 and depositing a cheque are both chargeable actions, and a returned cheque costs considerably more and carries credit consequences on top - never issue one you are not sure will clear. The exact prices are in your bank's tariff sheet, and cheque actions are among those counted inside a fee track, so the calculator prices them for your own pattern.
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 are a chargeable action; switch to digital immediately when you open the account
- Compare specialist transfer services for large international transfers - compare on the shekels actually delivered, not the headline fee
- 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: account maintenance, ATM withdrawals, standing-order processing, cheques and international wires. Two published anchors are worth knowing. The Bank of Israel reports that the average cost of running a household current account together with holding a debit card is NIS 31.6 a month, up from NIS 29.1 in 2024. And since April 2014 banks must offer flat-rate fee tracks alongside per-action pricing, with the basic track (up to one teller action and ten direct-channel actions a month) capped at NIS 10. Your oleh package waives most fees for the first year or two, so note the exact expiry date. The biggest hidden cost is the foreign-exchange margin, which does not appear as a line item and on large transfers far exceeds any flat fee. To minimise fees, negotiate a longer oleh package, use the Bank of Israel fee-track calculator to pick the cheapest billing method for your own pattern, go paperless, and compare specialist services on the shekels actually delivered before moving money abroad.
The Bank of Israel reports that the average cost of running a current account together with holding a debit card, in a household account, is NIS 31.6 a month, up from NIS 29.1 a month on average in 2024. Your own cost depends on your bank and your billing method: since April 2014 the banks must also offer flat-rate fee tracks, and the price of the basic track (up to one teller action and up to ten direct-channel actions a month) is capped at NIS 10. With an oleh package the maintenance fee is typically waived for the package duration, so ask specifically whether the package covers both the current account and the credit card.
It depends on whose machine you use, and the withdrawal is one of the actions counted inside a fee track. Rather than rely on a number that goes stale, use the Bank of Israel fee-track calculator: it prices your actual monthly pattern of actions against the basic track, the extended track and per-action pricing, at every bank. Because a single large withdrawal costs the same as several small ones, withdraw less frequently in larger amounts, and use your own bank's ATMs.
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: the stated outgoing transfer fee, a receiving fee on money coming in, correspondent (intermediary) bank fees inside the SWIFT chain that your own bank does not charge, and the foreign-exchange margin. The margin is the gap between the rate you are given and the real market rate, it does not appear as a line item, and on a large transfer it is usually bigger than every flat fee combined. The Bank of Israel attributes part of the recent rise in household banking costs specifically to growth in foreign-currency transactions and withdrawals. Compare offers on the shekels actually delivered, not on the headline fee.
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 over the interbank rate. That markup is separate from any flat fee and does not appear as a line item, which is why the Bank of Israel singles out foreign-currency activity as a driver of rising household banking costs. Ask specifically about foreign transaction fees and the conversion rate when choosing a card.
Setting up a standing order (hora'at keva) is cheap or free, but the ongoing monthly processing is a chargeable action, and across many recurring payments it adds up. Issuing and depositing a cheque are chargeable actions too, and a returned cheque costs considerably more and carries credit consequences, so never issue one you are not sure will clear. All of these are counted inside a fee track, so the Bank of Israel calculator will price them for your own pattern; the individual prices are in your bank's tariff sheet.
Negotiate your oleh package actively and aim for the longer term rather than the default. Use the Bank of Israel fee-track calculator to see whether the basic track, the extended track or per-action pricing is cheapest for your own monthly pattern, and remember you can switch billing method by giving the bank notice, effective on the 1st of the following month. Withdraw cash less often in larger amounts and stick to your own bank's ATMs. Go paperless immediately. Compare specialist services on the shekels actually delivered before moving money abroad. 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.