BANK OF ISRAEL
Office of the Spokesperson and Economic Information
July 16, 2015
Press Release
The Semiannual Report on Common Banking Service Fees was presented today to
the Knesset Economic Affairs Committee
 The decline in the monthly cost of maintaining a current account continues, even
without taking the fee tracks service into account.
 The monthly cost of using a credit card remains stable.
 The average revenue, on banks’ financial statements, from fees attributed to
households’ banking and financial activity accounts is approximately NIS 28 per
month.
 As of May 31, 2015, approximately 200,000 customers had joined the fee tracks
service. The Banking Supervision Department is taking steps to increase
customers’ awareness of this service and its worthwhileness. The Banking
Supervision Department calls on customers to make use of the comparisons in this
publication, calculators (including the fee track calculator), tips to save money, and
other comparisons on the Bank of Israel’s website, in order to examine the terms
offered by various banks and in order to make decisions regarding the bank at which it
is most worthwhile to hold a current account and securities portfolio.
 In recent months, several directives have come into effect which led to further
reductions in fees, increased transparency, and that improved bank customers’
negotiating position.
The Supervisor of Banks, David Zaken, today (July 16, 2015) presented the Semiannual
Report on Common Household Banking Service Fees to the Knesset Economic Affairs
Committee. The report is based on reports by the banks and credit card companies of
actual revenue from fees they collected in the second half of 2014. It also represents data
from their 2014 financial statements, by various activity segments.
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The main points of the report:
Average monthly cost for common current account services

In the second half of 2014, the average monthly cost for a current account for
households in the banking system1, based on a standard activity profile2,
totaled approximately NIS 12.80, compared to approximately NIS 13.0 in the
first half of 2014.

A comparison by a standard activity profile in a current account (tellerexecuted and customer-executed transactions) reveals wide variance among the
banks:
o In the banking system at large, maintaining an account at the Bank of
Jerusalem is the least expensive by a significant margin (with a monthly
cost of approximately NIS 0.3). In contrast, Mercantile Bank (with a
monthly cost of approximately NIS 20.0) and Arab-Israel Bank (with a
monthly cost of approximately NIS 16.8) are the most expensive.
o Among the five major banks, maintaining an account at the Bank
Hapoalim is the least expensive (monthly cost of approximately NIS 12.0)
and First International Bank is the most expensive (monthly cost of
approximately NIS 16.2).
Average actual monthly expenditure for common current account services

In the second half of 2014, the average actual monthly expenditure for
common current account services for households in the banking system3 was
approximately NIS 11.2, compared to approximately NIS 12.5 in the first half
of 2014.4
1
Excluding U-Bank.
A profile of monthly activity for an active household account, based on 10 customer-executed
transactions and 0.7 teller-executed transactions. It excludes completion to a minimum fee. This figure
is based on accounts that do not belong to a fee track, and on transactions beyond the limit in accounts
that do belong to a fee track.
3
The average actual monthly expenditure for common current account services for households is
calculated as the total revenue from teller-executed transactions, customer-executed transactions, the
basic fee track, the expanded fee track, completion to a minimum fee, and granting of credit divided by
the number of current accounts.
4
The decline is primarily a result of a reduction in the minimum fee, from the cumulative amount of
two teller-executed transactions, to the amount of one teller-executed transaction, as a result of an
2
Bank of Israel - The Semiannual Report on Common Banking Service Fees (July 2015)
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Comparison between banks:

In the banking system at large, the average monthly expenditure for an account
at the Bank of Jerusalem is the least expensive (approximately NIS 0.7)5, while
it is most expensive at Poalei Agudat Israel Bank (PAGI) (approximately NIS
22.5).

Among the five major banks, the average monthly expenditure for an account
is least expensive at Discount Bank (approximately NIS 11.0), and most
expensive at First International Bank (approximately NIS 14.3).
Average monthly expenditure on holding a credit card

In the second half of 2014, the average actual monthly expenditure of holding a
domestic, international, or gold credit card6 in the banking system amounted to
approximately NIS 7.4, similar to the first half of 2014.

Wide variance was seen in relation to the actual fees for holding a credit card:
In terms of the average monthly cost per card for holding a domestic,
international, or gold card, Isracard was least expensive (approximately
NIS 5.9) and Cal (Cartisey Ashrai Le’Israel)–Israel Credit Cards was the most
expensive (approximately NIS 9.5).
Comparison of fees for securities (traded in Israel) activity

A comparison of the actual cost, compared with the fee schedule, at each bank
separately, indicates that in every category, the fee actually charged is lower than listed
in the fee schedule.

The larger the value of a customer’s securities portfolio, the lower, in general, the fee
charged, as a percentage. This applies to purchase and sale commissions as well as
securities deposit management fees (details see pages 15-17).
Revenue from fees, based on consolidated financial statements
amendment to the Banking (Customer Service) (Fees) Rules, 5768-2008 that came into effect on April
1, 2014.
5
On April 1, 2014, the fees at Bank of Jerusalem for a teller-executed transaction and a customerexecuted transaction were reduced to zero. The actual collection (totaling approximately NIS 0.3)
refers to the first quarter of 2014.
6
The cost of holding a credit card is calculated by revenue from domestic, international and gold credit
card fees divided to the number of cards.
Bank of Israel - The Semiannual Report on Common Banking Service Fees (July 2015)
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Data from banks’ consolidated financial statements for the full year of 20147 indicate that
for the overall banking system, the annual revenue from fees8 attributed to household and
private banking activities was approximately NIS 7.6 billion. Of that amount, about NIS
2.3 billion was in respect of banking and financial activities, so that the average fee
revenue per account9 in Israel was NIS 28 per month. Banking and financial activity
includes, in addition to common services in a current account, the following services,
among others: checkbooks, banker’s check, returning a charge due to insufficient funds,
handling cash by a teller, funds transfers through RTGS, notices, issuing reports and
documents at the customer’s request, finding accounts, locating documents, receiving
information electronically, currency exchange fees, exchange rate differentials, depositing
foreign currency checks, collecting foreign currency checks, and foreign currency transfers
in Israel and to abroad. About NIS 2.6 billion of the total is in respect of credit card
activity, so that the average revenue from fees attributed to credit cards was approximately
NIS 27 per month.10 Credit card activity attributed to households and private banking also
includes revenue in respect of acquiring fees and interchange fees. Direct revenue
attributed to credit card activity (including, among other things, revenue from card holding
fees, dealing with an unjustified dispute of a transaction, immediate payment of
transactions, foreign currency transactions, and withdrawing foreign currency abroad) is
estimated to be around NIS 17 per month. About NIS 2.3 billion of the total is in respect
of capital market activity11, and around NIS 0.4 billion is in respect of mortgages and real
estate.
Updates:
Tracks service

As of May 31, 2015, about 202,000 customers had joined the fee tracks service.

On January 1, 2016, Proper Conduct of Banking Business Directive 423—which
deals with the fee tracks service—is expected to go into effect. Its goal is to
increase customers’ awareness of the tracks service and its features. Regarding new
7
Consolidated statements of the following banking groups: Leumi, Hapoalim, Discount, Mizrahi, First
International, Union, and Jerusalem.
8
Fees and other noninterest income.
9
In 2014, about 6.9 million accounts were maintained in the household and private banking segments.
10
In 2014, there were approximately 7.9 million credit cards, on average.
11
Capital market activity includes the following services, among others: buying and selling securities
traded in Israel and abroad, buying, selling, and writing Maof options, buying and selling Maof
uniform contracts, securities deposit management fees, bond conversions, exercising options, and other
income related to these activities (such as financial product distribution fees), etc.
Bank of Israel - The Semiannual Report on Common Banking Service Fees (July 2015)
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customers, the directive establishes that when a current account is opened, the
banking corporation is to give the customer a tracks service explanation sheet
together with its abridged schedule of fees for holding a current account. At that
time, the banking corporation is to work to receive the customer’s authorization
regarding the manner of charging the current account he/she requests—charging
through a fee track, or charging per number and type of activity (pay as you go).

Regarding existing customers, a Supervisor of Banks letter to the banking
corporations on June 21, 2015, established that they are to identify all customers
who had not joined the tracks service, and who paid at least NIS 10 in fees in each
month from January–May, 2015. The banking corporations are to present each of
those customers, in writing, the actual amount they paid in each of those months,
compared with how much they would have paid under the basic track or expanded
track, had they joined them, as well as a detailed list of how to join the tracks
service. Said notices are to be sent no later than October 1, 2015.
Amendments to the Fees Rules that went into effect on February 1, 2015:

With regard to credit card holders, the deferred payment fee was cancelled as of this date,
for transactions spread out over several payments.

Fee in respect of producing a confirmation of ownership—It was established that
banking corporations will only be permitted to collect a fee in respect of producing
confirmation of ownership of a bank account starting from the second confirmation during
a calendar year.

Transfer through the RTGS system—The fee for transferring funds in real time through
the RTGS (Real Time Gross Settlement) system up to NIS 1 million, was limited to the
price of one teller-executed transaction. Such transfers have many advantages for the
customer, including the efficient and reliable final settlement of payments in real time, and
they constitute an alternative to cash.

Fee for managing a housing loan—The housing loan management fee was cancelled.
This fee was under supervision and was limited to NIS 2 per month (NIS 24 per year) per
loan, and was collected with the monthly payment of the housing loan.

Definition of a small business—The definition was amended such that a business that
issues an annual report to a banking corporation stating that its business turnover in the
year preceding the date of the report’s submission did not exceed NIS 5 million will not be
required to issue an additional annual report (which it would have been required to do
every year, before the amendment, on a regular basis in order to benefit from the lower fee
Bank of Israel - The Semiannual Report on Common Banking Service Fees (July 2015)
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schedule). The amendment transfers the burden of proof to the banking corporation, and its
objective is to make it easier for small businesses to be eligible for the fee schedule
applicable to individuals and small businesses.
Amendments to the Fees Rules that went into effect on July 1, 2015:

Fee charged to depositor of a check that is returned—The amendment cancelled this
fee. Before the amendment came into force, customers were charged this fee when a check
that they deposited into their account was returned unpaid, regardless of the reason that it
was returned. The amendment was legislated because in most cases, the depositor has no
responsibility for the check’s return, and in most cases is not credited by the check writer
for the cost of the fee.

Notice fee: Setting a maximum amount to charge (supervised price)—This amendment
implements one of the recommendations of the Committee to Examine Increasing
Competiveness in the Banking Industry. Pursuant to the amendment, the maximum amount
that may be charged for this service is NIS 5 per notice (an amount that reflects only the
direct costs of issuing and sending the notice).

Debit card fee—In order to integrate the use of debit cards in Israel, and to increase
competition in this sector, a banking corporation will not be permitted to collect a card fee
in respect of a debit card issued to a customer, who also holds a valid credit card issued by
the banking corporation, after the amendment goes into effect (that is, from July 1, 2015),
for 36 months following the debit card issue date.

Foreign currency transactions and foreign currency withdrawals abroad with a
credit/debit card—The objective of the amendment is to make it easier and simpler for
credit/debit card holders to compare fees charged to them in respect of executing
transactions and withdrawing foreign currency using a credit/debit card.
Within the framework of the amendment, the following changes, among others, were
established: the fee will be calculated according to the representative exchange rate of the
conversion amount in the original currency; only one conversion will be carried out of the
foreign currency amount into shekels; and a distinction was made between rates for
transactions in euros or dollars, and transactions in other currencies.

A Supervision Order was put in place on services provided by merchant acquirers to
discounting services with credit cards—In accordance with the Order, the maximum
amount of a fee that is permitted to be charged for services provided by merchant acquirers
Bank of Israel - The Semiannual Report on Common Banking Service Fees (July 2015)
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to discounting services providers will be NIS 20 per month, and in the case of an
individual or small business customer the amount of said fee will be NIS 10 per month.
The Bank of Israel urges the public to examine and compare the terms offered by the
various banks and has made a variety of tools available to consumers on its website,
including savings tips, calculators, and comparative tables:
http://www.boi.org.il//en/ConsumerInformation/Pages/Default.aspx
Bank of Israel - The Semiannual Report on Common Banking Service Fees (July 2015)
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The Semiannual Report on the Prices of Common Banking Services for Households
Detailed Report
Comparison of Common Current Account Fees and Comparison of Basic Track and
Expanded Track Prices at Various Banks12:
Hapoalim
Leumi
Discount Mizrahi
First
Union
Mercantile Otsar
Int’l.
Customer-executed
Massad
Yahav
PAGI
Hahayal
Arab-
Bank of
Israel
Jerusalem
1.35
1.65
1.85
1.76
1.80
2.90
2.00
2.50
2.50
1.20
2.50
1.65
0.00
6.50
5.50
5.90
6.80
6.30
5.90
6.40
6.90
7.50
4.00
6.50
5.50
0.00
Basic Track
10.0
10.0
9.0
9.0
9.0
10.0
8.5
10.0
10.0
10.0
9.0
10.0
0.00
Expanded Track
22.0
20.0
25.0
29.0
26.0
24.0
26.5
27.0
30.0
20.0
29.0
20.0
0.00
transaction
Tellerexecuted transaction/
Minimum monthly fee
Average monthly cost of maintaining a current account for households, based on a
standard activity profile13
Development of Average Monthly Household Cost of Maintaining a Current Account in the
Banking System, based on a Standard Activity Profile,
2010–2014
12
13
The data are in shekels and are as of July 1, 2015.
See footnote 2.
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
During the second half of 2014, the average monthly cost for a current account
for households in the banking system, based on a standard activity profile, was
approximately NIS 12.8, compared to about NIS 13.0 in the first half of 2014.

In the banking system at large, the average monthly cost at the Bank of
Jerusalem is the least expensive (with an average monthly cost of
approximately NIS 0.3)14, while Mercantile Bank (with an average monthly
cost of approximately NIS 20.0) and Arab-Israel Bank (with an average
monthly cost of approximately NIS 16.8) are the most expensive.

Among the five major banks, the average monthly cost at Bank Hapoalim is
the least expensive (with an average monthly cost of approximately NIS 12.0)
and First International Bank is the most expensive (with an average monthly
cost of approximately NIS 16.2).

In the comparison of cost based on the fee schedule for a standard activity
profile, the Bank of Jerusalem proves to be least expensive and Union Bank the
most expensive. Bank Yahav, Bank Massad, and Otsar Hahayal Bank had the
greatest difference between the fee schedule cost and actual cost, which derive,
for the most part, from discounts and benefits provided to specific population
groups.
14
See footnote 5.
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Comparison of Average Monthly Cost of a Household Current Account in the
Banking System, based on a Standard Activity Profile, 2014
(Fee schedule vs. actual fees)
Maximum Price for the Basic Track
Actual Price
Fee-schedule Cost

A comparison of the average monthly cost for managing current account for a
household according to the standard activity profile in the full year of 2014 shows
that, with the exception of three banks (Otsar Hahayal, Massad and Yahav), the
actual monthly cost to customers who joined the basic track is lower than the
average cost according to the standard activity profile. With regard to Bank of
Jerusalem, see footnote 5.
The average actual monthly household expenditure on common current account
services15
Development of Monthly Average Actual Household Expenditure on Common
Current Account Services (including Credit Facility) in the Banking System,
2010–2014
15
See footnote number 3.
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
During the second half of 2014, the average actual monthly expenditure on
common current account services in the banking system totaled approximately
NIS 11.2, compared with approximately NIS 12.5 in the first half of 2014.

The decline in the average actual monthly expenditure (compared to 2013) is
the result of, among other things, a reduction in the minimum account
management fee, from the cumulative amount of two teller-executed
transactions to the fee for just one teller-executed transaction, which came into
effect on April 1, 2014.

In the banking system at large, the average monthly expenditure for an account
at the Bank of Jerusalem was the least expensive (approximately NIS 0.7)16,
and was the most expensive at PAGI (approximately NIS 22.5).

Among the five major banks, the least expensive average monthly expenditure
for an account was at Discount Bank (approximately NIS 11.0), and the most
expensive was at First International Bank (approximately NIS 14.3).
Monthly Average Actual Household Expenditure on Common
Current Account Services (including Credit Facility) in the Banking System, 2014
16
See footnote number 5.
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--------- Weighted Average
Five Major Banks
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Holding a credit card17

During the second half of 2014, the average actual monthly expenditure for
holding a credit card (domestic, international, and gold) in the banking system
was approximately NIS 7.4, similar to the first half of 2014.

The average monthly expenditure for holding an Isracard credit card (about 39
percent of all cards countrywide) was approximately NIS 5.9; for holding a
Leumi Card (about 31 percent of all cards) it was approximately NIS 7.3; and
for holding a Cal (Cartisey Ashrai Le’Israel)–Israel Credit Cards card (about
30 percent of all cards) it was approximately NIS 9.5.
Development of the Average Actual Monthly Expenditure of Holding a Credit
Card (Domestic, International, and Gold) in the Banking System,
2010–2014
Average Monthly Expenditure for Holding an Isracard Credit Card, by Issuer, in the
Banking System, 2014
17
See footnote number 6.
Bank of Israel - The Semiannual Report on Common Banking Service Fees (July 2015)
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Average Monthly Expenditure for Holding a Cal (Cartisey Ashrai Le’Israel)–Israel
Credit Cards Credit Card, by Issuer, in the Banking System, 2014
Average Monthly Expenditure for Holding a Leumi Card Credit Card, by Issuer, in
the Banking System, 2014
Activity in securities traded in Israel18
18
See footnote number 14.
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Comparison of commissions for the purchase, sale, and redemption of securities
traded in Israel—stocks and bonds
Hapoalim
Leumi
Discount
Mizrahi
First
Union
Mercantile
Int’l
Rate per transaction
Otsar
Massad
Yahav
PAGI
Arab-
Hahayal
Israel
Bank of
Jerusalem
0.60
0.65
0.54
0.64
0.65
0.6
0.54
0.75
0.78
0.55
0.64
0.65
0.55
26
27
35
50
40
30
35
40
40
32
40
27
20
Minimum per
transaction (NIS )
A comparison of commissions on purchase, sale, and redemption of securities traded in
Israel indicated that there is considerable variance and wide gaps between the banks. In the
banking system at large, the commission rate per transaction was the lowest at Discount
Bank and at Mercantile Bank (0.54 percent per transaction), and was most expensive at
Bank Massad (0.78 percent per transaction).
Comparison of securities deposit management fees for securities traded in
Israel, per year
Hapoalim
Leumi
Discount
Mizrahi
First
Union
Mercantile
Int’l
Fee, by percent 0.6%
0.6%
0.8%
0.7%
0.78%
Otsar
Massad
Yahav
PAGI
Hahayal
0.6%
0.8%
0.78%
0.8%
0.56%
0.78%
Arab-
Bank of
Israel
Jerusalem
0.6%
0.6%
A comparison of securities deposit management fees for securities traded in Israel19
indicates that there are appreciable differences in fee rates between banks. For the banking
system at large, the least expensive management fee is at Bank Yahav, and among the five
major banks, it is at Bank Leumi and at Bank Hapoalim.
Fees paid in actuality by customers holding securities—comparative data
19
A securities deposit management fee is collected for various services provided in managing a
securities deposit—such as operating information technology and information security system,
monitoring Stock Exchange notices, reporting to customers and receiving responses, monitoring
changes in corporate equity and reporting to the customer, issuing confirmations of ownership in order
to participate in company meetings, monitoring policy changes at mutual funds, and distributing
dividends and preferred shares.
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On January 1, 2015, Proper Conduct of Banking Business Directive number 414—
Disclosure of Cost of Securities Services—took effect. The Directive applies to individuals
and small businesses. The Directive requires banking corporations to publish comparative
data on fees charged to their customers for securities activities. In accordance with the
Directive, the data are published on banking corporations’ websites.
Following is a comparison of fee rates in actuality in the banking system in 2014 for a
securities portfolio worth between over NIS 100,000 to NIS 200,000, as well as for a
portfolio worth over NIS 200,000 to NIS 400,000.
Comparison of Israeli securities deposit management fee, and commissions (by
percent) for the purchase, sale, and redemption of securities traded in Israel—stocks
and bonds, for a securities portfolio value from more than NIS 100,000 up to NIS
200,000
Comparison of Israeli securities deposit management fee, and commissions (by
percent) for the purchase, sale, and redemption of securities traded in Israel—stocks
and bonds, for a securities portfolio value from more than NIS 200,000 up to NIS
400,000
Bank of Israel - The Semiannual Report on Common Banking Service Fees (July 2015)
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
A comparison of the actual cost, compared with the fee schedule, at each bank
separately, indicates that in every category, the fee actually charged is lower than listed
in the fee schedule.

In general, the larger the value of a customer’s securities portfolio, the lower the fee
charged, as a percentage. This applies to purchase and sale commissions as well as
securities deposit management fees.
The Banking Supervision Department urges the public to make use of the comparisons
presented here, the calculators (including the fee tracks calculator), the savings tips, and
the
other
comparisons
found
on
the
Bank
of
Israel's
website
at
http://www.boi.org.il/en/ConsumerInformation/Pages/Default.aspx in order to examine the
terms offered by the various banks, conduct negotiations with a bank or credit card
company, and to make decisions regarding the bank where it is most worthwhile for them
to manage their account.
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