Opening an Israeli bank account looks like a formality and often is not, particularly for new immigrants, non-residents and anyone who also holds US citizenship. This guide covers what is required, what differs for newcomers, and the right most people do not know they have: a bank cannot simply refuse you.
Disclosure: Educational information only. Procedures and required documents vary between banks and are updated periodically. For binding details, check with the bank or the Bank of Israel.
What you need to bring
Israeli identity card (teudat zehut) with its appendix, or a passport for those without one.
A second form of identification in some cases, such as a driving licence.
Beneficial owner and tax residency declarations. These are regulatory requirements, not paperwork the branch invented.
FATCA forms if you are a US citizen or green card holder. Israeli banks report US-person accounts under FATCA. This is routine and expected, but it is also why some banks are cautious with US clients, and why a few limit the products they will offer. Declaring your status accurately is not optional.
Proof of income source in some cases, such as a payslip or business registration, under anti-money-laundering rules.
If you have just made aliyah
New immigrants can open an account, and it is usually among the first things done after arrival. A few practical points:
Your teudat oleh is useful documentation alongside your identity card.
Many banks offer new-immigrant packages with reduced or waived fees for an initial period. These are not always offered unprompted, so ask.
Absorption basket payments from the Ministry of Aliyah and Integration are paid into an Israeli account, which is part of why the account comes early in the sequence.
Non-residents can generally open a non-resident account, though the requirements are heavier and the available products narrower. If you are moving to Israel, the account is normally converted once you have resident status.
Digital banks versus branch banks
| Aspect | Digital bank | Branch bank |
|---|---|---|
| Account fees | Often very low or none | Depends on the plan and on negotiation |
| Opening | Remote, with online identification | Usually a branch appointment |
| Service | App and call centre | A named banker, physical presence |
| Product range | Focused | Broad, including mortgages and securities |
| Hebrew requirement | App may be Hebrew-first | A banker can walk you through it |
The fee gap is real and compounds. Weigh it against what you will need later: anyone likely to apply for a mortgage may find value in a relationship with an institution that offers the full range.
You are not obliged to keep everything in one bank, and there is no penalty for holding more than one account. Many people keep a digital account for day-to-day use alongside an existing relationship elsewhere.
For English speakers, one practical filter matters more than any fee table: which bank actually serves you in English, in the app and on the phone. This varies considerably, and it is worth asking directly before you choose.
Your right to an account
This is the most important part of this guide, and it is not widely known.
A bank in Israel may not arbitrarily refuse to open an account. There is a right to a basic current account, intended to prevent anyone being left without access to the banking system. A basic account permits essential activity, receiving a salary or benefit and making payments, even where the bank is unwilling to extend credit.
A refusal can be challenged. If a bank refuses:
1. Ask for the refusal and its reasons in writing. You are entitled to this, and you will need the document later.
2. Contact the Banking Supervision Department at the Bank of Israel, which has authority to examine complaints against banks.
3. If the refusal stems from restrictions on your account due to dishonoured cheques or collection proceedings, address the underlying problem before reapplying.
Draw the distinction carefully: the right is to a basic account, not to credit. A bank may decline an overdraft facility or a loan on risk grounds. See credit rating in Israel.
Settle these immediately after opening
Your fee plan. Fixed monthly plans are considerably cheaper for anyone making many transactions. Do not stay on the default without checking. See bank fees.
Your overdraft limit. Set it deliberately. An unnecessarily large facility invites expensive drift into it.
Standing orders and direct debits. Review them once a year.
Foreign currency. If you receive income from abroad or keep savings in another currency, ask about foreign currency accounts and conversion spreads before the first transfer, not after. The spread is often the larger cost, not the stated fee.
Summary
Opening an account requires identification and tax declarations, with FATCA forms for US persons and a teudat oleh useful for new immigrants. Digital banks save on fees while branch banks offer breadth, and English-language service varies more than pricing does. Above all: there is a right to a basic current account, and a refusal can be put in writing and taken to the Banking Supervision Department. See banking and credit in Israel. We provide the knowledge, the decisions remain yours.
The information on this page is for educational purposes. Please consult a professional before making financial decisions.
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