4/10/2017 To Open an Israeli Bank Account or to Not Open an Israeli Bank Account. That is the question.Read NowBefore coming to Israel, I considered opening a bank account here. After reading blogs and message boards, I decided against it. Everyone said it is a pain to open an account and they charge so many fees. When I started the program, a classmate confirmed it. He had tried to open an account on multiple occasions and kept being turned away for one reason or another. It seemed that no one wanted his money. Instead of opening a bank account in Israel, I opened a checking account with Charles Schwab. Their policy of reimbursing all foreign ATM fees enticed me. It has worked out quite nicely. However, last month I was awarded a scholarship through Tel Aviv University (yay!) and they require that I have an Israeli bank account. So I braced myself and went to the closest bank to campus where I knew they worked with students, Leumi, located on Brodetski. (Photo courtesy of https://whoprofits.org/company/leumi-bank) I went in on a Sunday around 2pm with all the appropriate documents: passport, another picture ID, and a proof of enrollment to the university letter. When I walked in, I asked the first employee I saw where I was supposed to go. He pointed me to a desk and said I didn't have to take a number, but just go to the woman behind the desk when she was finished with the client she was speaking to. I thanked the man for his time and grabbed a number just in case. I noticed that most people's numbers had an "H" on it before the number, but mine had an "M." After waiting for about an hour, I noticed that only H's were being called. I went up to a woman behind another desk and asked her where I should go. She said I had to come back the next day when the manager was there. I came back the next day at 9:15am and went up to the manager. She directed me to take a number and wait for the bank associate I had been directed to the day before. She was a tall woman in her late 20's with long dark and stylish clothing. After about 45 minutes, she was available to see me. The procedure went fairly smoothly. However, she was obviously frustrated that I was taking the time to read the contracts, at least the ones in English. She kept telling me, "Just sign it. All you need to do is sign it." Another strange part was when the bank associate asked me how much money I would be putting in each month. I asked her what the minimum amount is. She became defensive and said there is no minimum amount. Then I asked her if there were fees for going below a certain amount in the account. She either didn't want to tell me or didn't understand the question. The only information on this that I got from her was that it costs about 1 shekel if you go under. How often and what the minimum amount is, should would not tell me. Additionally, she refused to translate contracts that were in Hebrew for me and just expected me to sign. In terms of withdrawing money from the account, usage of a debit card is 8 shekels a month. Furthermore, to withdraw cash from a Leumi ATM costs 1.5 shekels. If I chose not to have a debit card, withdrawing cash from a bank teller would cost 5.5 shekels. Coming from the US where banks throw money at you to open new accounts, this set up seems ridiculous. An alternative bank that I did not find out about until after I opened an account with Leumi, is Discount Bank. (Photo courtesy of http://www.globes.co.il/en/article-norwegian-central-bank-buys-israel-discount-bank-stake-1001155621)
A friend told me that the reason Leumi charges so many fees is because they do not allow international students to open a student account, which normally waves petty charges. However, Discount Bank does. They charge no fees for use of a debit card or withdrawing money. There is a branch also on Brodetski, close to Tel Aviv University, but you must go to their main branch in order to open an account. I have heard nothing but good things about Discount Bank. |
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