Banking in Israel as a Brit: opening an account, keeping your UK one and moving money
Israel still runs on cheques for the rent and an app called Bit for everything else, and both need a local account. Opening one is straightforward once you have your ID; the bit to plan is keeping the UK side ticking over.
The short version
- Open an Israeli account once you have your ID or immigrant documents and an address. Banks want your passport, proof of residence status and proof of address [2].
- Expect questions about where your money comes from. A UK house sale or inheritance needs paperwork.
- Israel has no general deposit insurance scheme like the UK's FSCS. The Bank of Israel has described an implicit government guarantee instead [3].
- Keep at least one UK current account for UK income, direct debits and your credit file. Ask your UK bank about its policy before you go.
- Your UK State Pension can be paid into an Israeli account; payments to an overseas account carry a 0.39% conversion charge [1].
Choosing an Israeli bank
Five banking groups dominate: Bank Hapoalim, Bank Leumi, Israel Discount Bank, Mizrahi-Tefahot and First International Bank of Israel. Most have English-speaking staff in central Tel Aviv branches and apps with at least some English.
| What you'll meet | What it is | Compared with home |
|---|---|---|
| Monthly account fees | Often a few tens of shekels a month, sometimes waived for olim [2] | Free current accounts are normal in the UK |
| Cheques | Still used for rent, often post-dated for the whole year | Barely seen back home in Blighty |
| Bit and PayBox | Payment apps linked to your account, for splitting bills and paying traders [2] | Like a bank transfer by phone number |
| Credit cards | Issued through the bank, with purchases usually collected once a month | A debit card that settles monthly |
| Overdrafts (minus) | Common and expensive, at high interest rates [2] | An arranged overdraft, but more widely used |
The differences that matter day to day are monthly fees, card fees abroad, and what the bank charges to receive money from the UK. Many banks offer fee packages, and some waive fees for new immigrants for a period [2]. Compare the price lists before you sign; it's a bit of a culture shock after free banking at home.
Opening an account: what to bring
Every bank has its own list, but expect to show [2]:
- Your passport.
- Your Israeli ID (teudat zehut) or, for olim, the immigrant certificate (teudat oleh) or temporary residence document.
- Proof of address, Israeli or foreign. A tenancy agreement usually does.
- Proof of income, such as an employment contract or payslip, especially for a credit card.
- Your tax residence and tax number. Under the international rules on sharing account information, banks ask where you're tax resident. In your first months you may still be UK resident; say so. Your UK National Insurance number may be asked for as a UK tax reference.
If you're not yet resident (on a work visa, for example), you can usually open a foreign resident account, but expect more paperwork and sometimes limited online banking [2]. Banks may ask for a reference from your UK bank and proof of source of funds for larger sums.
Source of funds. Bring the completion statement from your UK house sale, a solicitor's letter, or UK bank statements. It's not personal; Israeli banks are strict about anti-money-laundering rules and will hold a transfer until they're happy.
Cheques. Landlords commonly ask for post-dated cheques covering the lease, so order a cheque book when you open the account. Bounce several and the bank can restrict your account, which is a proper headache to undo.
Keeping your money safe
There is no Israeli equivalent of the FSCS's protection of UK deposits. A Bank of Israel paper says plainly that "in Israel, there is no deposit insurance mechanism, but there is an implicit government guarantee" [3]. That paper dates from 2015 (page updated 2023); in 2018 the government agreed to give state deposit insurance only to new banks as a start-up benefit [4]. When we checked in November 2026, we found no general scheme in force. In practice the big banks are closely supervised, but if you're bringing over a large sum, spreading it between banks is a sensible habit.
Be wary of anyone offering "Israeli investment accounts" or high-interest deposits by cold call, WhatsApp or social media. If a UK firm offers you investments from abroad, check it on the FCA Register and Warning List first [5].
Keeping your UK account alongside
Keep at least one UK current account. You'll want it for:
- UK income: rent from a UK flat, a UK pension, dividends.
- UK bills: a mortgage, insurance, subscriptions and the odd Amazon order sent to family.
- Your UK credit file, which helps if you ever come home. See your UK credit file while you're away.
Some UK banks limit what they offer customers living abroad, or close accounts when they learn you've moved. Ask your bank before you go, update your address honestly, and keep a UK correspondence address and mobile number if you can. Our guides to keeping a UK bank account when you live abroad and keeping a UK mobile number and address go into detail.
Tax on UK interest. Once you're UK non-resident, UK savings interest may still be UK income [6], and the UK–Israel treaty caps UK tax on most interest at 10% [7]. As an Israeli resident you declare it in Israel too, unless you're within the ten-year exemption for new immigrants, and since 2026 new arrivals must report it even then. See our guide to tax benefits for new immigrants.
Moving money from the UK
The pound-to-shekel rate moves every day, and the gap between your quoted rate and the mid-market rate is where most of the cost hides. Easy Aliyah's guide puts typical Israeli bank charges at ILS 15–50 (about £3.50–£12) for an international transfer, plus 1% to 3% on currency conversion [2].
- Compare the total cost. Look at the exchange rate margin as well as the fee. A "free" transfer at a poor rate can cost more than one with a fee.
- Use IBANs. Israeli IBANs begin IL. UK transfers go through the international payments system, not Faster Payments.
- Think about the currency. Israeli banks offer foreign currency accounts, so you can receive pounds and convert when the rate suits.
- Warn the bank about big sums. For a flat deposit or school fees, tell your Israeli bank in advance and send the source-of-funds paperwork first.
Our guide to sending money between the UK and abroad explains the options without recommending any firm.
Your State Pension. Choose payment every 4 or 13 weeks into a UK account in pounds or an Israeli account, where the 0.39% conversion charge applies [1]. Israel is on the DWP's uprating list, so the pension rises every April [8].
Which bank's app is least painful is a perennial debate in our community group for Brits in Israel, along with how to get Bit working on a UK-registered phone.
Pound conversions use the Bank of England spot rate of 5 November 2026 (£1 = ILS 4.3162). Banks named here are examples, not recommendations.
Sources
- GOV.UK: State Pension if you retire abroad
- Easy Aliyah: How to open a bank account in Israel, a step-by-step guide
- Bank of Israel: Issues in the application of deposit insurance (2015, page updated 15 March 2023)
- Globes: State to provide deposit insurance solution for new banks (21 May 2018)
- FCA: ScamSmart
- GOV.UK: Tax on your UK income if you live abroad
- GOV.UK (HMRC): 1962 UK–Israel Double Taxation Convention as amended by the 1970 and 2019 Protocols
- GOV.UK (DWP): Countries where we pay an annual increase in the State Pension (updated 27 October 2026)