Joint Bank Accounts in Israel: Be Aware....

So you've made Aliyah with your spouse - or perhaps you've just got married in Israel and you're all set to saving your money. You'll need a bank account. You'll probably ask friends and family (who may not actually know the legal ramifications of anything banking wise) what type of account to open. Newly weds often debate the pros and cons of having a joint bank account. One is so used to one's own account, that one feels it's the way to go. Others might encourage you to give way and show your commitment to marriage by having a joint bank account. Should you choose separate accounts, people who find out may feel the right to pressure you saying you or your spouse has something to hide - as if to say that once one is married, one should feel that one's own money is just as much one's spouses as it is one's own - and therefore having a separate account seems to indicate some sort of disloyalty to the spouse.

One may well feel pressured to take a direction one had not ever thought of doing before. Banking in Israel is probably not the same as it is it in other parts of the world. Due to this, it's vital to understand some very important points which - by the way - your bank manager and bank client-relations representative will never tell you. In fact, just at about the time you're ready to open the account, you'll probably find over 50 pages of documentation you'll need to sign. When you ask what it's about, you will just be told to sign the pages (and who knows what will happen afterwards!) Should you inquire as to the better type of account i.e. separate or joint - you will not be informed of anything - but will rather be met with a stare and a pen being handed to you.

In fact, there are some vital points every Israeli needs to be clear about. It seems that even after years after making Aliyah - there are new things one finds out about only much later - things one wishes one knew when one had made Aliyah - "Why didn't they just tell me it should be done this way?!"

A case in point concerns the joint bank account in Israel and a particularly dangerous part of it. Be warned before opening one - so that you can protect yourself from the start! Here's the thing: Your account is open, money is being deposited and accumulating regularly (only of course if you have a job that secures you more than minimum wage.) The account is doing nicely - and sadly one of the spouses dies. For those with all their money in one account, this can be devastating in terms of the legal ramifications. Immediately, save for essential urgent and immediate expenses, the Israeli bank will freeze the account and you will have no access to it at all!

Solution: Before opening the account, make certain that a clause is put into the documentation giving permission for the other spouse to make use of the funds should the other spouse pass on. It's really as simple as that. The banking clerk could easily tell you this and save everyone much aggravation - but as is often the case - it's up to the individual to know the correct way of doing things and to take the initiative. Wherever possible, when involving oneself in any sort of important legal undertaken - make sure to get as much helpful and necessary real advice - in order to make the best of informed decisions in Israel.

Tzvi Szjanbrum - a practising attorney at law, shares this point in the video below. Share this post with your family and friends, and help them to be better informed about the joint bank account in Israel and a hidden danger that lies behind it. Share our entire blog - and help your friends and family learn more about life in Israel, legal points, difficulties, challenges and the happy moments too!

This post was prepared for you

by Eliyahu Shear

Co-Director of Chessed Ve'Emet: www.lovingkindness.co

Torah Learning Online and Acts of Lovingkindness

Plastic Wrapping Your Luggage When Flying

In the last few months, a new practice has begun for security reasons. Prior to checking in, it is recommended to have your luggage plastic wrapped to secure it against sratches, cuts, breaks and theft, possibly a few other things too.

Many airports around the world now offer this. Certainly it is becoming more used in South Africa.

If you fly within South Africa or Internationally, you need to take your luggage to the "Protect Your Luggage" kiosk near the entrance. There is a cost per piece of luggage wrapped.

If you fly to Eretz Yisrael on ElAl, this service is free once you complete your security check. If you are concerned as to whether it is still free when you fly, please call ElAl prior to going to the airport, or simply walk across to the ElAl counters and enquire prior to having your luggage Plastic Wrapped. It takes a few minutes to walk over to the counter and enquire and can save you the money of paying to be wrapped, when ElAl currently offers this free.

Travel Safely and Welcome to Israel.

Opening a Bank Account in Israel

Opening a Bank Account

When opening a private bank account in Israel you should know a few of the loopholes. A private bank account is called in Hebrew “cheshbon osh” (Over V’Shav).

What can you do using an “Over V’Shav” account?

In fact, you can do almost everything. For example: you can pay most of the bills you receive in the mail, draft personal checks (in Israel you are allowed to write a postdated check), make transactions with other banks or pay your credit card bills (in fact you must have a bank account to pay your credit card bills in Israel).

Where to open your account?

Every major bank has branches all over the country so it won’t be hard to find a branch nearby your house. It is always better to work with the closest branch to your house. You will find that in Israel you will have to go to your bank often.

The bank should not prevent you from opening an account:

Any citizen is allowed to open an account except when the new client behaves improperly or the person had a previous account in the same bank and had “problems”.

Even when the client is considered “mugbal” (which happens when ten of your checks are bounced) the bank cannot deny you the right to open an account, but in this case the account will not have any credit frame. You won’t be able to be in deficit (minus). In addition you won’t be able to use or to have personal checks from this account.


What questions should you ask when opening a new account?

The most important question is not what the bank has to offer you, but if the bank can offer you the services and conditions you require. If you always have a positive balance in your account (one of the few in Israel who actually live within his budget!), receiving low interest for your deficit is not an advantage for you. If you don’t make many transactions in your account, a low fee for those transactions is not enough of an incentive for you. Therefore, look for what will serve your banking needs and not what the bank particularly offers you.

You will be informed that all the bank fees are listed and you will even be shown a list of those fees. Don’t be fooled – you can bargain over the fees, especially over those that you most use.

It will be very difficult to change anything that you didn’t ask for or bargain for once your account is active.

Your Credit Line:

By law the bank does not have to give you any credit line. Credit lines are a result of your assets in the bank, your credibility with the bank, and even a bit of the impression that you make on the bank personnel. It is easier to receive a credit line for those who have a steady salary. The higher your salary and the more money have in savings in the bank, the more credit you will receive. Please remember that this is not a free credit; interest is very high here and very difficult to calculate in advance (read the small print!).

Paperwork:

All the banks in Israel send you a regular statement by mail even though you can obtain all this information on the bank internet site. Please keep every piece of paper for seven years, as it is stipulated by law. You may never know when you may need them and in Israel you will certainly need them at some time.

Minimum Age for Opening an Account:

A minor can open a bank account after the age of 16. A minor over the age of 14 is also eligible to open an account on the condition that his parents (both parents) give and sign their permission in the bank.

From the age of 15, a minor who is working and receives a salary that is deposited in the bank can ask to open his own account in the bank, even without his parents signed agreement.

Credit Cards, Checks and Credit Lines for Minors:

Banks may issue credit cards to a minor who is 15 and is employed, as stated above. But no minor will receive a checkbook before the age of 16. Between the ages of 16 to 18, the bank will stamp in the checkbook that account holder is either a minor or juvenile. In addition, the amount of withdrawal for every check is limited to 400 shekels.

Minors can receive a bank card with which he can withdraw cash. The limit is 400 shekels a day, on the condition that the account is not in deficit. It is not possible to have credit lines for minors without the parents consent. Under no circumstances can the bank allow a withdrawal over the minor’s credit line.

It is possible to have a very limited debit card (again for purchases of up to 400 shekels a day).

Changing one’s account to another bank:

Not only is this permissible, but you will find that banks are always looking to attract new customers, especially if they have assets. Therefore, when changing banks you can always improve your existing privileges.

In addition, banks cannot charge more than a small fee to transfer your account.

Unfortunately there are many inconveniences when changing bank accounts. Even though your new bank you are transferring to will help you to have a smooth transfer, it is not a short process, and sometimes it is even unpleasant.

Changing bank accounts involves changing credit cards, checkbooks, automatic payments (very popular in Israel), and much more. So make a well-informed decision before taking this step and don’t be tempted by promises.

-- This post has been written for us by Tzvi (Henrique) Szajnbrum