Israel’s Child Savings Program Reaches 25.4 Billion Shekels with Shift to Pension Funds

By the end of 2025, Israel’s "Savings for Every Child" program accumulated deposits totaling 25.4 billion shekels, generating returns of 3.85 billion shekels, according to a National Insurance Institute report summarizing nearly a decade of the initiative. The year 2025 saw a significant migration of savers from banks to pension funds, resulting in the closure of nearly 100,000 bank accounts. Approximately 95% of new savings opened in 2025 were deposited in pension funds, up from 89% in 2024 and 87% in 2023. Currently, 84% of all savings under the program are managed by pension funds, with the remainder held in banks.

The program was introduced in 2015 as an alternative to increasing child allowances when ultra-Orthodox parties rejoined the government. The National Insurance Institute deposits 57 shekels monthly into each child’s savings account, with parents able to double this amount by allocating part of their child allowance. Children can withdraw funds at age 18, or wait until 21 to receive an additional 586-shekel bonus. Children born before 2017 received extra grants at ages 3, bar mitzvah, and 18 to compensate for years without deposits.

Last year, 63% of parents chose to double their monthly deposits, up from 58% the previous year, and about 60% actively selected their investment track rather than accepting the default. For the first time, total withdrawals upon children reaching adulthood exceeded one billion shekels.

The data highlights a clear parental preference for pension funds over banks, facilitated by a legislative amendment removing restrictions on transferring savings. Investment house Infinity gained the most new clients in 2025, adding nearly 63,000 savers and rising to fifth place with 239,000 accounts. Meitav and Analyst followed with about 48,000 new clients each. No banks recorded net growth; Bank Hapoalim, the only bank in the top ten, lost 53,000 clients last year, with about 40,000 moving to competitors and the rest likely withdrawing funds upon maturity. Altshuler Shaham, still the market leader with 957,000 clients, reduced its accounts by about 9,000. Harel ranked second with 587,000 savers after losing 40,000, and Phoenix was third with 317,000 savers, adding roughly 3,200 accounts.