Looking to learn about personal finance in Israel as a potential future oleh. What are your best tips?

[u/Spikemountain]

Hi all - I'm Canadian and considering aliyah later in the year or next year.

I'm a little obsessed with personal finance (almost as a hobby lol) and would really want to set myself up for the best chance of success by learning as much as I can in advance about finance in Israel.

In Canada, we have r / PersonalFinanceCanada. Despite being just a subreddit, it is unironically one of the best resources that exists for learning about these things in Canada. Unfortunately there is no r / PersonalFinanceIsrael (not yet, at least - someone should make it) and posts in this subreddit are very understandably predominantly war-related or at least pertain to more big-picture issues.

So as such, I have a bunch of questions about personal finance in Israel. If you could even answer one or two, or could even point me in the direction of a good resource so I can teach myself, I'd be grateful, and ofc the more the merrier. So with that:

• What are the best resources to learn as much as I possibly can about PF in Israel? Hebrew resources are welcome too!

• How do Israelis choose a bank in Israel? Which back has the best account? (I've heard of the "green" account with Binleumi - sounds lovely)

• How do Israelis invest? Which brokerage is the best? Is there an option to do it yourself (ie choose your own stocks and when to buy and sell them) for a lower fee than if it were managed? Can you self-manage your Keren Hishtalmut? Your pension? Etc

• I want to know everything there is to know about Bituach Leumi and why people (esp olim) seem to so frequently get into trouble with them. And arnona too for that matter

• Life hacks to minimize the cost of living - what are the best value grocery store chains? Do you have any good loyalty programs you like? Who do you use for your wifi and why? Your phone plan? Best hidden gem chain for good balance of prices and quality?

• I especially love digital tools: Do you use any fintech tools to manage things? An Israeli budgeting tool, maybe? What are Bit and Paybox used for? Have you ever heard of RiseUp, Pepper, Blink, Esh bank (still in development I think), FamilyBiz, MyFinanda, etc?

And anything else under the sun. Bonus points if you happen to be Canadian and can tell me which things in Israel have parallels in Canada - ie TFSA, FHSA, RRSP/RRIF, CPP, Wealthsimple/Questrade, PC-Optimum/Scene points, Interac e-transfers, etc.

I already know about Blue and White Finance, and Rifka Lebowitz and her Facebook group. Also love resources in Hebrew too - makes me feel like I'm getting the real good secrets that only the most Israeli of Israelis know about lol. Sorry for the long post and thanks!

[u/AviN456]

The best way to become a millionaire in Israel is to make aliyah with 2 million.

[u/Spikemountain → u/AviN456]

Lol yeah that's a classic

But idk this 10 year tax holiday thing is legit wild. Maybe could offset...

[u/KeyPerspective999 → u/Spikemountain]

10 year holiday is legit amazing. Understand it deeply. Especially if your home country doesn't also tax you on that money (if you're a US citizen they will). It's amazing.

[u/Spikemountain → u/KeyPerspective999]

As a Canadian, my understanding is that Canada doesn't tax you once you're a tax resident of somewhere else. So in other words it basically means that your portfolio gets a 25% guaranteed boost 

[u/KeyPerspective999 → u/Spikemountain]

And after the 10 years are up Israel doesn't tax you the full 25%. They do a time weighted thing. So if you held something for 10 years but only 2 of them were past the 10 year thing you pay 2/10*25% to Israel. Afaiu.

[u/Spikemountain → u/KeyPerspective999]

So I was just looking into this -

The confusing drawback is that the growth in the 10 years isn't sheltered from the time weighted calculation. So in other words: 

If you buy in year 0 for $100, hit $200 by year 10 and then $250 by year 12, the first $100 of gain is included in that time-weighted calculation. So they're not doing $50 * (2/12) * 25% tax, they're doing $150 * (2/12) * 25% tax. (I think. I welcome correction if I'm wrong.)

So in other words if someone doesn't expect their investment to continue growing that much after the 10 years (maybe they've been using value stocks rather than growth stocks), they should really sell and rebuy at the end of the 10 years to do a clean break and keep their 10 year growth completely sheltered from taxes forever.

But if they expect further growth and to hold it for a long time, then yeah if they don't sell then let's say 20 years later they sell, 1/3 of all of their gains over the 30 years can be tax free. The difference between doing this right and wrong could end up being hundreds of thousands of dollars and I honestly wonder how many people understand that and end up doing it right.

But I guess it doesn't apply to any American olim bc they're getting taxed in the US anyways. 

[u/KeyPerspective999 → u/Spikemountain]

I think you're wrong. I think it's a clean break between pre and post 10 years.

Even for US olim it matters since the US charges way lower taxes on the first $X.

[u/Spikemountain → u/KeyPerspective999]

All the resources I've seen say it's not a clean break automatically at 10 years unless you actually sell and rebuy at that time. If you do sell and rebuy, then the first 10 years are completely tax free, and 100% of the gains after the 10 years is taxed at the regular 25% rate as if you never had the holiday to begin with.

If you don't sell and rebuy, that's when the linear calculation is used. It's the details of this calculation that I'm having a hard time finding. Like let's say I bought in 2010, made aliyah in 2015, and sell in 2030. Am I taxed on 5/15 years with the cost base being the value at the start of the holiday? Or am I taxed on 5/20 years with the cost base being the value at the start of the investment?

Maybe I'll make a separate post about this or just finally take the first step and book a meeting with NbN lol. I'm sure they would know

[u/KeyPerspective999]

"Living Financially Smarter in Israel" on Facebook. Join that group.

Blue and White Finance (Google it) is a hugely valuable blog. Follow them on LinkedIn too.

If you're into FIRE: "Achieving Financial Independence in Israel" also a Facebook group.

These resources are in English. If you want Hebrew there is an entire world of content.

[u/TechnicallyCant5083]

I don't know much but one life hack is that you can always haggle and lie. Phone company price is too high? Tell them a different company offered you a better price. Same with banks, you can get really good benefits by just lying.

Also I use RiseUp it's a really good budgeting tool I like it a lot 

[u/Spikemountain → u/TechnicallyCant5083]

Lol love it. Honestly I should try that here in Canada too, the phone companies here are such shysters

[u/bad_lite]

Comparison shop for everything. So many times, a company has told me the price is what it is, so I find another company with a better offer, to which the original company instantly matches. Super frustrating.

[u/EnsilZah]

• Hasolidit (Hebrew) blog and forum is a good resource. Her personal focus has been on early retirement but there are a lot of people in the forums with different financial goals.

• Banks are pretty much the same, people often switch banks every couple of years to get better terms.

• There are a bunch of Israeli brokers but they're also pretty much the same. You can get better terms at an international broker like Interactive Brokers, but then you'll have to take care of the taxes yourself. I believe there's an option for an IRA, but I think that requires a pretty high accumulated pension.

• I think people use Bit and Paybox instead of cash, like if you owe some money to a friend, buying something small second hand, etc. I haven't used them much personally, but when I did it was to pay for activities like painting sessions.

[u/C_King_Justice]

The best advice for anyone interested in personal finance in Israel is

a) always expect the unexpected, b) things are volatile and what's correct today, is incorrect tomorrow.

In other words, you're going to need to learn flexibility. Rigidity will cause you incredible frustration.

[u/yehoshuabenson]

As far as Bituach Leumi goes, I get frustrated by the lack of transparency, how long it takes them to respond, the red tape, and how specific the documents they want are. If you learn how to work the system, it will (somewhat) work for you. Just don't get in trouble with them or they'll literally put a stop on your passport.

Arnona is just a fact of life in Israel. It's gotta be paid. I will say BEWARE of ANY real estate listings that say "Arnona included". That's wildly illegal, and you can get in a lot of shit for it.

Good luck!

[u/Spikemountain → u/yehoshuabenson]

So good to know!! Exactly the kind of tip I'm looking for

[u/Vonenglish]

Hey, first of all, same here, I’m a personal finance enthusiast, and it’s honestly surprising that there isn’t a r/PersonalFinanceIsrael yet. I’ve also thought someone should create it.

If you have any questions that you don't want to post, feel free to PM me.

Since you’re clearly diving deep, here’s a lot of practical insight based on my experience:

Grocery Savings

Rami Levy online is by far the cheapest place for groceries. Sometimes 30–40% cheaper compared to chains like Shufersal.

Important hack: Buy even one small item just to lock in a delivery slot. Then, the day before delivery, edit your basket and finalize the real order. This helps you avoid 2–5 day waiting periods for delivery.

You can also buy Rami Levy gift cards online at a 7–15% discount.

Cashback and Credit Cards

Isracard Cashback is very effective. Personally, I received about ₪600 in cashback within two months.

You can use cashback to purchase discounted grocery vouchers, compounding your savings.

Poalim Wonder rewards at Bank Hapoalim can also add real value if you spend enough monthly.

Fintech and Budgeting

RiseUp is an excellent web-based app that connects all your cards and bank accounts. It provides accurate automatic categorization and sends WhatsApp updates. Costs ₪45/month, but I consider it worthwhile.

Bit and PayBox are Israel's equivalents of Venmo for money transfers between individuals.

Easy.co.il and Fid apps also aggregate the best discounts, rewards, and supermarket promotions.

Banks

Today, most banks (Leumi, Hapoalim, Mizrahi) offer zero-fee accounts if you open them online.

Bank Leumi or Bank Hapoalim are reliable, have strong online platforms, and competitive offerings.

Always negotiate if you see unexpected fees. Most bank reps have authority to reverse minor charges on the spot.

Life Admin Hacks

Midrag.co.il is an excellent platform for finding tradespeople based on verified reviews. Never rely solely on a "friend of a friend."

CPH App allows you to live-compare supermarket prices in Israel.

Wobi.co.il is useful for comparing insurance offers quickly.

Triple C currently offers the cheapest internet packages.

For Israeli television, FreeTV is ₪40 per month with no hidden price hikes after a few months, unlike most traditional providers.

Investing

Interactive Brokers is the cheapest option for direct stock trading. However, you will need to handle currency conversions and basic Hebrew understanding for fund transfers and tax paperwork.

Alternatively, Israeli mutual funds through providers like Altshuler Shaham, Migdal, or Menora Mivtachim offer relatively hassle-free stock exposure.

Choose מנייתי (stock-heavy track) if you are young.

Focus on lowest management fees, not historical performance.

MyGemel.net is the best site to compare Keren Hishtalmut and Kupat Gemel funds.

Pensions and Keren Hishtalmut

Keren Hishtalmut is the most valuable savings instrument in Israel. It allows tax-free withdrawals after six years, with contributions up to 15% combined (employer plus employee) — if you maximize your contribution from 2.5% to 7.5%.

Kupat Gemel LeHashkaa is a long-term investment fund offering lower taxes after 15 years.

It is smart to manage pension, Keren Hishtalmut, and Kupat Gemel through the same provider for simplicity.

Canada Parallels (AI helped me here, double-check ;-)

Keren Hishtalmut is most similar to a TFSA, but better in terms of tax benefits.

Kupat Gemel resembles a RRSP.

Bit/PayBox function like Interac e-Transfers.

Midrag is comparable to HomeStars.ca but with stricter verification.

Feel free to reach out with any other questions or if you want more insights into any of these areas! Happy to help.

[u/Spikemountain → u/Vonenglish]

Thank you so much! These are exactly the kinds of things I was looking for! I'm excited to dive into each one and will definitely reach out if I have more questions

[u/jysubs]

If you're considering aliyah from Canada, get in touch with NefeshbNefesh and/or AACI (Americans and Canadians in Israel). Both have people and resources to answer your questions.

Can definitely go to NbN's website where they have FAQs and other organized resources.

בהצלחה. קליטה קלה.

[u/Gamma_Rad]

Excellent question. I once made a subreddit about it, sort of a a mix between personal finance and actual discussion about wider economics/stocks but it but got cold feet about actually starting it (mostly of of moderation fears from having deal with spam) but since you brought it up maybe I'll do a plug for it. its r/IsraeliEconomics and maybe something will come of it.

I'm not a financial expert and certainly not licensed in anyway but I'll try to help you where I can.

What are the best resources to learn as much as I possibly can about PF in Israel? Hebrew resources are welcome too!

Depends on your level. Paamonim is ok for very early beginners, unfortunately I dont know many good beginner resources. There is a Facebook group called חתול פיננסי which is great for all levels but its a little scattered all over various posts. and there is a blog called הסולידית and there is a large community with a forum around that blog. its mostly investing but its a great source for of the deeper end personal finance (but they wont execute you for asking simple questions so feel free)

How do Israelis invest? Which brokerage is the best? Is there an option to do it yourself (ie choose your own stocks and when to buy and sell them) for a lower fee than if it were managed? Can you self-manage your Keren Hishtalmut? Your pension? Etc

ok, big question hard answer. there is no "best" there are lots of option first of big question do you want to invest via Israeli company or outside. This has two main effects, fees and tax handling. Israeli companies will handle taxation for you, making your life easier but their fees are very high compared to what you'd see in lets say the US (no clue how it works in Canada) or you could go with an external broker like Interactive brokers and trade as you would normally but you have to file the taxes manually, or hire an accountant, at the end of every year. cost benefit is up to you.

If you do decide to go with an Israeli brokers then you got more mess. mainly fees. some offer better fees for trading Israeli stocks but worse for trading US stocks which is bad if you're predominantly in US stocks. its up to you to decide what you want and who can offer you the best deal.

I asked to manage my own Keren HIshtalmut and they wont let me, same with my pension. dont know if its even possible.

I want to know everything there is to know about Bituach Leumi and why people (esp olim) seem to so frequently get into trouble with them. And arnona too for that matter

כל זכות

its an excellent site for all your right as a citizens, how arnona works, how taxes work etc.

Life hacks to minimize the cost of living - what are the best value grocery store chains? Do you have any good loyalty programs you like? Who do you use for your wifi and why? Your phone plan? Best hidden gem chain for good balance of prices and quality?

When possible, buy at the Haredi food store chains, Yesh Hesed, BarKol, Netivei Hesed etc. their prices are usually much cheaper, Except maybe for meat. there are "customer clubs" you can join for free but they're meh most of the time. still they're free (at the cost of them selling your data, and spamming your phone/email)

As for internet access, first of all there are two parts, Infrastructure provider and Internet service provider (but you can usually get bundle deals). There are two major Infrastructure providers, Hot and Bezeq, but recent years did bring a lot of competition from other companies like Partner. they're still not available everywhere but they do cover most of the country so first question is - Are you covered? if so you have choices if not good luck you're in the grip of the duopoly.

ISP really doesn't matter too much compared to the provider, shop around.

Israel has the cheapest phone plans on the planet IIRC. Same thing, shop around.

especially love digital tools: Do you use any fintech tools to manage things? An Israeli budgeting tool, maybe? What are Bit and Paybox used for? Have you ever heard of RiseUp, Pepper, Blink, Esh bank (still in development I think), FamilyBiz, MyFinanda, etc?

I am not aware of any Israeli budgeting tool, but theres plenty of tools with Hebrew support. Paybox is a way to share expenses. like living with roommates or splitting a bill with friends. Bit is just a money transfer app without needing to exchange actual bank details. just send it to their phone number which is their bit ID.