Bank of Israel to Replace Per-Transaction Fees With Monthly Account Subscriptions in 2027

The Bank of Israel has published the final version of its bank fee reform, which will take effect on July 1, 2027. Under the new system, retail customers will no longer pay separately for each basic transaction. Instead, banks will move all customers automatically to a monthly pricing model, similar to a subscription.

According to Bank Supervisor Dani Hhiashvili, the goal is to simplify account management, reduce confusion and improve competition and fairness. He said basic payment-account services should be available to everyone at a reasonable cost, and that the current mix of options makes comparison difficult. The reform also eliminates the current plan-based system, which required customers to sign up in advance.

The new structure sets two main tiers. Customers who make up to 100 basic banking actions a month, such as salary deposits, transfers, standing orders or check deposits, will pay up to NIS 10 a month. Those with very low activity, up to two transactions a month, will pay NIS 5. Any additional activity above 100 actions will be charged at up to NIS 1 per action. Banks will identify the number of transactions automatically, and no customer action will be needed.

The reform also lets banks offer optional service bundles that include extras such as securities or foreign exchange for one fixed monthly fee. In addition, debit card fees will be capped at NIS 7 a month starting October 1, replacing the current three-year exemption for customers who hold both credit and debit cards.

The Bank of Israel says the current system is confusing rather than just expensive, and notes that when the service launched in 2014 it was worthwhile for 35% of accounts, but only 24% actually enrolled last year. Bank officials say small businesses, many ordinary salaried households, and customers who use branch tellers are likely to save. But Lobby 99 and the organization Revach Naki warn that more than 60% of bank customers already pay less than NIS 10 a month, so the new cap could become a flat charge and raise their costs instead of lowering them.