Israeli banks unveil NIS 3b customer benefits package

Israel’s big banks have unveiled a package of customer benefits worth NIS 3 billion over two years, after the Bank of Israel set such a target following the record profits reported by the banks in 2024.

The Bank of Israel said today, “The significant plan that has been formulated is more suitable for the needs of the banking system’s customers than specific taxation processes and legislative processes that propose to intervene in the pricing of banking products and the management of current account funds and returns-producing tracks.”

Bank Leumi (TASE: LUMI) will allow customers hit by the war to postpone loan repayments for three months at no extra cost. Other benefits include postponing mortgage repayments for up to 24 months for those affected by the war, exemptions for current account fees for those affected by the war and an exemption from interest on overdrafts for those affected by the war.

Bank Hapoalim (TASE: POLI) will offer a grant of NIS 250 for young people, students and reserve soldiers with a balance of more than NIS 30,000. Other benefits include an exemption of quarterly fees for securities, an exemption on quarterly current account fees and credit card fees for evacuees, a grant of NIS 250 for new customers with a monthly salary of over NIS 5,000 and a balance of more than NIS 30,000, a grant of NIS 500 for the self-employed who have taken a loan of over NIS 100,000, a grant of NIS 1,000 for those who have taken mortgages of more than NIS 500,000 in the past quarter, and a reduction in interest on overdrafts of 2.7%-2.9% on a current account framework of the accountholders salary.

Israel Discount Bank (TASE: DSCT) is offering a 100% refund on the interest charged on overdrafts, loans and current account fees for small businesses and reserve soldiers, and a refund of up to NIS 375 per month for small businesses and reserve soldiers for the next quarter.