A savings account for your children in IsraelNo, you're not dreaming! The Israeli government has passed a resolution that will please parents in Israel. From January 2017, every Israeli child under the age of 18 will have a savings account in his or her name, into which the Bitouah Leoumi will pay 50 shekels a month, until he or she turns 18.
More good news
- Payments will be retroactive from May 2015 to December 2016. Therefore, for a child born before May 2015, the account will be credited with 1,000 shekels.
- You, the parents, can also pay 50 shekels a month (taken from the child benefit you receive), which will double the amount saved.
- The savings account can be managed by a bank or a "koupat guemel". The choice is yours. You have until June 1, 2017 to notify Bituah Leoumi. Click on this link to register. If you do not notify the Bituah Leoumi, it will be the Bituah Leoumi who will place the money in the fund "by default".
- The Bituah Leumi will pay the management fees until your child turns 21. When your child turns 18, Bituah Leumi will pay 500 shekels into the account. The total amount saved will be at the child's disposal, and can be withdrawn with the consent of a parent.
- If, however, the child decides not to withdraw the money from the savings account and waits until he or she turns 21, the Bitouah Leoumi will pay him or her an additional 500 shekels. He will then be able to withdraw the money without his parents' authorization.
- Children will be able to pay for their driving licenses, psychometric tests or start financing their studies.
See also: What is bitouah Leoumi?