Responding to a Need From the Field, Bank Hapoalim Launches an Interest-Free Savings Account

Bank Hapoalim is launching a dedicated banking product for customers who want to avoid receiving bank interest on their money and savings. (Economy) R' Israel Dekelboim (Photo: Inbal Marmari)

As part of the product, called “Interest-Free Savings Account,” customers can deposit a shekel-denominated term deposit, with no link to the consumer price index and no interest, for a period of one year, including monthly withdrawal windows from the date the deposit is opened. The minimum deposit amount is 100 shekels.

R' Israel Dekelboim, head of the bank’s activity in the Haredi sector, said the bank received requests from customers who do not want to benefit from interest on their money and savings, but want to separate funds intended for savings or designated purposes from the rest of the money managed in their current account. According to him, the product was developed in response to a need that arose from the field and out of a desire to provide a tailored banking solution for this population.

Dekelboim added: “Bank Hapoalim has been active in the Haredi sector for decades and provides banking services adapted to the needs of its customers. When we identified customers who sought to avoid receiving interest even במסגרת a halachic heter iska, we developed the ‘Interest-Free Savings Account’ for them, which allows savings funds to be separated and managed in accordance with their halachic worldview.”

Bank Hapoalim has valid halachic heter iska authorizations, granted by the rabbinical court of the Badatz Edah HaHaredit Jerusalem and by the High Court. The heter iska authorizations are available for public review on the bank’s website and in its branches.