Bank Yahav charges the lowest fees for checking account activities, according to a report by the Bank of Israel’s Banking Supervision Department presented to the Knesset Economic Affairs Committee on Wednesday.
Bank Yahav, associated with state employees and Mizrahi-Tefahot Bank, charges 4 shekels per transaction for teller services, including cash withdrawals or check deposits. In contrast, Mizrahi-Tefahot charges 6.8 shekels per transaction—the highest fee among Israeli banks.
For direct channel transactions, such as setting up standing orders, Bank Yahav also offers the lowest fee at 1.2 shekels per transaction, while Discount Bank charges the highest at 1.85 shekels.
Customers seeking to minimize costs for routine account activities can opt for a basic fee package regulated at 10 shekels per month. This package includes up to 10 direct channel transactions and one teller-assisted transaction. Larger packages are available for 20–30 shekels per month, though these fees are unregulated.
The report noted that total revenue from banking fees in the first half of 2024 reached 2.9 billion shekels. The largest share (28%) came from securities-related activities, followed by fees for credit cards, account management, and credit services.
Data showed that the average monthly cost of managing a checking account and holding credit cards fell to 23.6 shekels, a 4-shekel decrease compared to 2023.
Wartime banking relief
This reduction was attributed to a financial assistance framework introduced to help customers cope with the economic impact of the war. Under this framework, most fees for first-circle customers—including checking account transactions, information services, and debit card fees—were waived, though fees for foreign currency transactions and withdrawals were excluded.
Looking ahead, the Banking Supervision Department plans to revise the fee structure in early 2025, aiming for further reductions. Bank guarantees backed by specific monetary deposits will be charged as a fixed shekel amount instead of as a percentage of the transaction amount. Fees for guarantees on residential property deposits of up to 50,000 shekels will also be reduced.
Additionally, banks have been authorized to charge fees for services provided through payment apps, including receiving payments, executing payment orders, and subscription fees for premium features. These charges remain subject to approval from the Banking Supervision Department.
Daniel Hachiyashevili, Supervisor of Banks, emphasized, “Supervision recognizes the importance of presenting fee data to enhance transparency and reflect to the public the costs of various services. At the same time, we are making various tools accessible so customers can improve their financial situation and strengthen their position in dealings with the bank.”