Israel’s Child Savings Program Reaches 25.4 Billion Shekels Amid Parental Engagement Gaps

Israel’s national "Savings for Every Child" program has accumulated a total of approximately 25.4 billion shekels since its launch in January 2017 through the end of 2025, according to a comprehensive report by the National Insurance Institute’s Research and Planning Division. Of this amount, about 17.7 billion shekels (70%) were deposited directly by the National Insurance Institute, while parents contributed an additional 7.7 billion shekels by opting to double the monthly savings from child allowances. The program’s accumulated profits have reached around 3.85 billion shekels.

In 2025 alone, deposits totaled 3.56 billion shekels, with 363,909 new savings accounts opened, over 94.8% of which are managed by provident funds rather than banks. By year-end, there were 3,633,573 active savings plans in Israel, alongside approximately 335,000 inactive plans due to withdrawals or transfers. During the year, 122,300 plans were fully redeemed and 2,960 partially redeemed, totaling about 1.075 billion shekels. Additionally, around 433,000 grants were paid to children reaching ages 3, 18, and 21, amounting to 193.3 million shekels.

The data highlights a clear shift from banks to provident funds, which are seen as more profitable long-term growth engines. Currently, 84% of active savings plans (about 3.05 million) are managed by provident funds, compared to only 16% in banks. This trend was reinforced by a legislative amendment in January 2025 allowing parents to stop bank deposits and open new provident fund accounts, resulting in 98,119 new provident fund plans and a halt to bank deposits during the year.

Despite the impressive accumulation, parental involvement remains limited. Only about 63.2% of accounts with deposits in 2025 included parents doubling the monthly 57-shekel child allowance contribution. Active parental choice of investment tracks since the program’s start stands at roughly 60%, dropping to 54% for plans whose selection period ended between July 2024 and June 2025.

The program provides monthly state deposits of 57 shekels per child until age 18, with an option for parents to add 57 shekels from the child allowance. Special grants are also awarded based on birth year and age milestones. Currently, nine banks and nine provident funds manage the accounts, with the National Insurance Institute covering management fees. Deputy CEO Tzvika Cohen emphasized the program’s role in promoting equal opportunities and urged greater parental engagement to maximize financial benefits for children, noting that increased involvement could significantly raise the savings amounts for families.