Most Israelis Choose Banks Based on Family Recommendations, Not Fees

A recent survey from Tel Aviv University reveals that a significant majority of Israelis exhibit financial passivity, with 67% never comparing competitor bank offers and 55% not negotiating fees. This trend persists even among those receiving regular SMS notifications detailing their paid commissions. Instead of seeking better deals, 47% of respondents choose their bank based on recommendations from relatives, while only 3% prioritize attractive deposit interest rates.

The article also details the conclusion of Israel's voluntary capital disclosure program, which allowed citizens to legalize undeclared assets. Over the past year, 823 applications were submitted, revealing assets totaling approximately 1.89 billion shekels. The majority of these applications, nearly half, were filed in the program's final month, August, as individuals rushed to comply before the deadline.

The Israeli Tax Authority anticipates collecting around 152.6 million shekels in taxes from this program after final checks. Preliminary data indicates that foreign bank accounts constituted the largest declared asset category, with 197 applications revealing 623.1 million shekels, expected to yield 41.9 million shekels in taxes. Cryptocurrency followed, with 203 applications disclosing 482.5 million shekels, projected to generate the highest tax revenue of approximately 51 million shekels. Rental income was the most frequent submission type, with 324 applications totaling 358.2 million shekels, expected to bring in 32.3 million shekels.

Other declared assets included inheritances, securities, business income, and diamond transactions. The Tax Authority stressed that these figures are preliminary and subject to verification. This program, supported by the Attorney General, covered various tax obligations and is part of a series of similar initiatives held in Israel since 2011, which have collectively brought in about 5 billion shekels. The success of this latest program suggests that voluntary disclosure remains a viable mechanism for citizens to legalize assets when offered clear terms and protection from prosecution.