Hapoalim Bank (level: poly) announced a package of benefits in response to pressure on banks by Bank of Israel Governor Prof. Amir Yaron and proposed legislation by Knesset members and ministers. Unlike other major banks in Israel, except Israel Discount Bank (level: DSCT), which has not yet made an announcement about this, Hapoalim does not offer interest on current accounts but reverts to the formula of balancing positive balance days in the account with overdraft days, thus combining two of the Bank’s demands for Israel to pay interest on current accounts and reduce Overdraft interest.
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The product targets hundreds of thousands of private customers who are in credit balances for part of the month and overdraft for other parts of the month, reducing the interest paid on debit balances. This means that a client who is not at all in the red, whose balance is positive all month, will not receive any benefits. Hapoalim will also reduce the interest paid on some overdrafts.
The first international bank to pay 2% interest on current accounts
First International Bank of Israel (level:FTIN1; FTIN5) is following in the footsteps Bank Leumi (level:room) And Mizrahi Bank and pay interest on positive checking account balances. The bank will pay between 1.8% and 2.2% on balances of up to NIS 25,000 starting July 1 for customers who pay their salaries into the account or whose financial assets with the bank — current account, securities and deposits — do not exceed NIS 50,000.
Published by Globes, Israel business news – en.globes.co.il – on July 2, 2023.
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