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Guide to opening a bank account

Author: Yossi Lax and Bell System

Most people use a current account for their day-to-day financial management.

The bank account allows:

  • Receive money from a variety of factors, such as salary from an employer and allowances from the National Insurance Institute.
  • Keep the money without fear of its disappearance or theft.
  • Pay by Direct Debit, bank transfer, credit or debit card.
  • Withdraw money from the ATM.
  • Receive credit and loans for current and long-term needs.
  • Manage investments and increase profits on existing money.

As a rule, the bank must open a bank account for the customer with a balance and allow him to manage it efficiently and conveniently, unless the bank has reasonable grounds to refuse. Therefore, the bank must provide at the customer’s request a debit card for immediate debit and a card for withdrawing cash. In addition, the bank must allow the customer to make a payment by standing order, retrieve information at a self-service station, and allow him access to the account via the Internet.

The banks invest a lot of capital and effort in acquiring new customers. Don’t feel uncomfortable when you’re interested in opening a first or second account. You are a potential repeat customer. Ask everything you want to know and don’t hesitate to insist on understanding relevant financial terms. The bank will assist you in obtaining the necessary information, you only need to ask for it.

Two important sections of the Banking Law have been enacted so that you can get the information you need to make wise decisions:

  1. Prohibition of deception – The bank is obligated to provide the customer with proper disclosure of the services and terms of the transaction or account.
  2. Prohibition on conditional service on service: The bank may not condition the provision of its service (such as providing a loan) on the customer’s obligation to purchase another service it offers (for example, signing a standing order for savings).

StepOne ChoosetheRight Bank

Terms & Fees

Before opening an account, it is recommended to conduct market research and compare the terms offered to those opening a new bank account in several banks, just as when buying any other service.

Check whether there are preferential conditions for the population groups you belong to (youth, soldiers, students, retirees, new immigrants) and whether there are benefits for your workplace or for certain professions (teachers, engineers, doctors).

Once you’ve received a few offers, choose the best one for you.
Having trouble deciding? Get help from friends or family who are knowledgeable in the field or post a question on online forums.

Recently, the banks have been obligated by law to include within the framework of current account management services offered to their customers, both the basic track and the expanded track.

Basic track – the possibility of performing up to 10 actions through a direct channel and up to one clerk’s action, at a supervised price of up to NIS 10.

Extended track – the possibility of performing up to 50 actions through a direct channel and up to 10 clerk actions.

Today it is possible to compare the prices of these tracks between banks. When you examine the feasibility of switching to one of the basic tracks, the bank is obligated to present you with the amount you actually paid for fees in the account in the past three months. You can click to one of these plans and get the commission information independently through your bank’s website.

Location of the bank

If you are used to working using a computer and the Internet, the geographical location of the bank branch is less significant. In the age of the Internet, most of the activity can be performed from the computer. Focus on locating a bank branch that provides you with the best service and conditions.

StepTwo UnderstandAccountManagement Terms

Come prepared with a list of questions you want answered such as:

What means of payment you can receive from the bank, such as checks, credit cards and debit cards, and how much they will cost you, i.e. what fees will be charged to you for the service in question.

How much credit limit you can receive (it is recommended that it not be higher than your income), what interest you will pay on mandatory balances in your current account (note that sometimes there are interest brackets that depend on the amount of the facility). If you have investment funds in shekels, foreign currency or securities, check the fees charged for them. Are there any benefits or exemptions on line fee, direct channel fee, clerk fee, credit card fee, or credit allocation fee. To compare commission costs between banks.

What are the ways to keep track of the account?

Mobile phone, Internet, Bancomet or statement of account. Check whether obtaining information in any of these ways involves a cost and what the cost is. For reasons of feasibility, safety and confidentiality, it is recommended to obtain information via the Internet and not through automatic banking machines.

If you are currently or have been in the past, and even far away, have a limited, foreclosed or bankrupt account, the bank has access to this information and can limit and limit your activity in the account, such as refusing to extend credit to you or refusing to issue credit cards for you.

StepThree Negotiate

Even if it seems irrelevant, it’s still a good idea to negotiate account terms and fees. The banker has the opportunity to lower prices. Information about parallel terms at other banks may help when negotiating. Remember! Every discount you get is worth a lot over time.

Step4 Signingaccount openingdocuments

Have you decided where to open your bank account? You will now be required to fill out and sign forms for opening and managing an account. If you decide to open a joint account, all partners will be required to sign the relevant documents.

When opening an account, you must come equipped with an ID card, and prepare for the bank clerk to present you with a series of questions on personal issues without which the bank will refuse to open an account.

Be sure to compare the terms offered to you with the terms written in the contract.

Today, opening a bank account can be done in some banks without going to a branch but through a visual online conference (video conference). You can check whether the bank you want to join offers such an account opening service.

Don’t sign the agreement if it’s not clear to you.

From the Ministry of Finance website “My Finance

Have you opened an account? Now it also has to be managed with a link to “Bank account to be managed

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