QuestionI'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 put 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 at insurance companies here apparently? Thank you in advance if you can help and clarify.
AnswerRegarding your query, there are generally products called pakam - פק״מ. This literally means "fixed-term savings". These savings products are offered by banks and allow you to save a fixed sum every month. These products have withdrawal stations that can be scheduled in advance, with a withdrawal possible every : weekly every: month quarterly half-year, or year. An interest rate calculated according to the term of the investment. Obviously, the shorter the period, the lower the interest rate. But it's a "solid" form of savings, one that's sure to create a nice sum of capital that you can draw on again if the need arises. Insurance products are less solid, and therefore a little more profitable. But if your main aim is to build up capital, I'd recommend placing this product in a bank. At least in the short term. This will enable you to remain in control of your investment. Saving money in Israel is still a safe way to plan ahead and secure your future. Thanks to Sarah G. for this question.
See also: Pension contributions in Israel
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