Israeli Bank Account Fees Surge to Nearly 1,000 Shekels Per Family in 2025
According to the Bank of Israel's 2025 annual report published yesterday, the average cost of managing a single current account and holding a credit card reached 379 shekels per account. Given that the average household holds 2.6 accounts, this translates to roughly 1,000 shekels annually per family, marking a return to peak fee levels seen in 2023. The 2024 dip in fees was largely due to a temporary relief framework introduced by banks during the "Iron Swords" conflict, which exempted certain groups such as reservists, bereaved families, and evacuated residents from account fees.
Credit card fees represent the highest individual cost at 150 shekels per year, with the average number of credit cards per account rising to 1.9 in 2025 from 1.7 in 2021. This increase is driven by various clubs and credit card companies offering benefits, though fee waivers are typically temporary, resulting in higher overall card fees for households. Additionally, households paid about 140 shekels annually for account transactions like transfers and check deposits.
The Bank of Israel expects these fees to decline starting next year following a reform announced last month. From October, debit card fees will be capped at 7 shekels, and the maximum cost for 100 account transactions will be limited to 10 shekels, or 120 shekels annually.
In 2025, banks earned 5.7 billion shekels from fees charged to households and small businesses, up from 5.4 billion in 2024. One-third of these fees came from securities trading, a highly profitable area for banks due to large price gaps compared to investment houses. The Bank of Israel and the Securities Authority are working on a transparency reform for these fees, though implementation is expected to take several years. Meanwhile, banks are offering temporary incentives to retain especially younger clients.
Other significant fees include current account fees (20%) and credit card fees (19%). Fees on credit borrowing and currency conversion remain stable, with non-bank foreign currency wallets and digital banks like One Zero offering competitive alternatives. Prior to the fee reform, banks were required to offer a basic current account fee plan costing up to 10 shekels per month, but only about 15% of customers have opted into these plans, with many paying higher fees without subscribing. The highest fees were recorded at Mercantile Bank and Mizrahi-Tefahot Bank for customers not enrolled in fee plans.
