Israel — Banking: Online Banks

Why this matters

Online banking can save time and money, especially for those living abroad, but it's essential to understand the Israeli banking system before opening an account.

Key facts

• Accounts at the Bank of Israel are limited to the government, financial entities, and certain foreign central banks and banks; private customers must use a commercial bank.
• The Directive 367 amendment on online account opening covers an individual resident of Israel who is at least 16 years old.
• After 2015 the Banking Supervision Department required banks to tighten requirements and risk management toward non-resident customers, which reduced the number of non-resident accounts.
• Expect extra documentation and scrutiny, and possible refusal, when opening an account as a non-resident.

Steps

1. 1. Research Eligible Banks — Look into Israeli banks that offer online banking services, considering factors like fees, exchange rates, and minimum balance requirements.
2. 2. Gather Required Documents — Typically, a valid passport, proof of address, and identification will be required, but specific documents may vary by bank.
3. 3. Open a Bank Account — Follow the bank's online application process, which may involve uploading documents and completing a verification process.
4. 4. Set Up Online Banking — Activate online banking services, which may involve setting up a username, password, and security questions.
5. 5. Fund the Account — Deposit funds into the account, which may involve transferring from another account or making a cash deposit.