Bank of Israel to Replace Per-Transaction Bank Fees With a Monthly Cap

Granite Ofek, a senior official at the Bank of Israel’s banking supervision unit, said the regulator is about to overhaul bank fees so customers will no longer pay for each action separately. In an interview with Anat Davidov on Radio 103FM, she said the current system is disappearing and will be replaced by one fixed monthly payment.

According to Ofek, the new fee will be capped at 10 shekels a month, although banks may choose to charge less. She said the charge will cover many more banking actions than today and will become a competitive tool for the banking system.

Ofek said some groups will benefit especially. Small businesses that already enrolled in the “packages” service currently pay about 20-something shekels a month, so the change should be significant for them. She also said older customers will not be harmed and may even be better off. Today they can perform up to four teller transactions a month, but under the new system that limit will be removed, and they will be able to come as often as they want.

On credit cards, Ofek said they are not included in the stricter supervision because it is a competitive market. She urged consumers to check card fees carefully, warning that many people sign up for cards because of club benefits and introductory discounts that expire after a year or two. She said customers should pay attention to the notices they receive.