Israeli Banks and Credit Card Firms Launch Financial Apps Targeting Children
Israeli banks and credit card companies are increasingly entering the gap left by the state in providing basic financial education tools for children and teenagers. Last week, Bank Hapoalim launched "Hapoalim Junior," an app for children over eight years old that allows parents to manage prepaid cards, track spending, and open savings accounts with fixed interest rates. The app includes educational content on money management for both parents and children. Currently, Israeli law permits opening a bank account at age 14 with parental approval, but these accounts offer limited debit cards restricted to domestic use and low transaction volumes, which do not fully meet the needs for digital money management tools.
Bank Hapoalim's prepaid card has no monthly fees for basic use, allows loading up to 2,500 shekels without charges, and offers a 4% annual fixed interest on dedicated savings deposits up to 30,000 shekels. However, foreign currency purchases incur a standard 3% fee. Earlier, Discount Bank's PayBox launched PayBox Young, a digital wallet for children over eight, charging parents a monthly fee of 4.9 shekels for a basic account and 7.9 shekels for a physical credit card. PayBox Young enables parents to set spending limits and transfer money, with interest rates between 1% and 6% for balances over 2,000 shekels.
In addition, three credit card companies, Isracard, Cal, and Max, have introduced prepaid credit cards for children without age limits but requiring the parent to hold a credit card with the same company. These cards block certain services like gambling and crypto and allow parents to set recurring allowances. However, they charge per transaction fees ranging from 1 to 3.5 shekels, which can add up for small top-ups typical for children.
Compared to global financial products for youth, Israeli offerings remain basic. International platforms like the US startup Greenlight and UK-based GoHenry integrate stock trading, gamified financial education, and advanced parental controls. European fintech Revolut offers customizable spending limits and transaction blocks, while US startup Modak rewards children with points convertible to real money for completing financial literacy tasks. Despite Israel's high birth rate, its financial products for children lag behind these advanced global solutions.
