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How can I save money in Israel?

saving money in israel - cabinet expertise comptable Dray Expert Comptable Dray Dray

Question

I'm taking the liberty of sending you an e-mail, because I need a little help from someone who knows the Israeli system well.

I'm with Bank Leumi and every month I'd like to set aside about 500₪. And be able to touch "this capital" in case of need.
From what they tell me, there's no such system in Israel etc ... And a friend told me that you can save with insurance here apparently?

Thank you in advance if you can help me.

Answer

Regarding your query, there are generally products called pakam - פק״מ. This literally means "fixed-term savings".

These savings products are offered by banks and enable you to save a fixed sum each month. These products have withdrawal stations that can be scheduled in advance, with withdrawals possible every :

  • weeks,
  • months,
  • quarter,
  • semester,
  • or year.


An interest rate calculated according to the term of the investment.

Inevitably, the shorter the period, the lower the interest rate.
But it's a "solid" form of savings, guaranteed to create a nice capital sum that you can draw on when you need it.

For insurance products, it's less solid, so a little more profitable.
But if your main aim is to build up capital, I'd recommend putting this product in the bank. At least for the short term.
This will enable you to remain in control of your investment. Saving money in Israel remains a safe way to plan for and secure your future.

Thanks to Sarah G. for this question.


Read also: Pension contributions in Israel


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