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Guide - transferring a bank account from one
bank to another as easily as possible

Are you interested in examining the possibility of transferring your bank account to another bank? Have you decided to transfer your bank account to another bank? Below is a detailed explanation of the process of closing an account and transferring from one bank to another, so that you will be able to do it in the easiest, fastest and most worthwhile manner:


Detailed information is available in
Proper Banking Management Regulation Number 432, which deals with transferring activity and closing a customer’s account.

Obtaining full information on your accounts at the bank

In order to examine your financial status at the bank, and to consider the advisability of transferring your account to another bank, you can request an "information form" (in Hebrew) from the bank twice a year, free of charge.
The form specifies all the assets and? liabilities that you have at the bank and the costs involved in their early payment, details of the credit facility in the account, fees that were charged to the account in advance, the existence of powers of attorney, and so forth.

The information form must be issued to the customer by the bank within four business days from the time of the application. It is advisable to request the form before making a decision to transfer from one bank to another, because the form can help you:

  • To consider the advisability of transferring the activity (in whole or in part) to another bank.
  • To obtain a clear and comprehensive list of issues that you are required to handle before closing your account.
  • To see your financial situation so that the bank to which you were considering transferring your account can examine the conditions of the account that it will offer you.

Avoiding unnecessary trips to the branch

In order to reduce the need for repeated visits to the bank branch as part of the process of closing the account and transferring it to another bank, it is advisable to implement the following:

  • Give detailed instructions - Be sure to give the bank explicit instructions regarding the actions that must be implemented in regard to each one of the assets and? Liabilities that are specified in the "information form" that was given to you. At that time, it is advisable to submit all the instructions to the bank, including instructions for future actions (for example, transferring to the new bank account an amount of money that will be received in the account following a future payment of a deposit).
  • Agreement for providing instructions by telephone and by fax - Ask the bank to sign a form for providing instructions by means of telephone or fax, which will enable you to give any additional instructions, if the need should arise, without having to visit the branch.

Implementation of the transactions by the bank to which the account is transferred

After you have selected the bank to which you wish to transfer the activity, the new bank will implement the following actions for you:
Current account:

  • Notifying entities that transfer money into the account (e.g., the National Insurance Institute, an employer) of the number of the new account for the deposit.
  • Notifying entities that debit the account under a debit authorization (various payments such as mortgage payments, payments to the Israel Electric Corp., etc.) of the details of the new account for debiting.
  • Issuing a new credit card and handling the application to transfer the activity in continuing transactions.

If the new bank issues you a credit card, it will obtain your signature on an application to transfer the activity in continuing transactions, which are conducted through account debiting authorizations, from your old card to your new card. The bank will transfer the information on the new card to the bank in which the account was closed, and the latter will notify all the suppliers from whom you have made purchases, of the cancellation of the old card and the details of the new card for the purpose of the debits. If you do not wish to do so, you can transfer the authorizations to your new cards independently.

Please note:
The bank to which you are transferring the account is entitled to implement for you all the actions entailed in transferring the activity in the account, including: obtaining detailed information on your account from the old bank and providing instructions regarding the assets and liabilities in the old account. The bank is entitled to do so provided that it was given a power of attorney in which you empower it to conduct these actions for you.

Transferring the activity, in whole or in part, to another bank

Once you have obtained the information required to examine your banking activity, and after you have examined the conditions offered to you by the various banks, you can try to request the bank in which your account is handled to offer you better conditions. If your request is denied, you can transfer to another bank in which it is more worthwhile for you to keep the account.

You can choose whether you wish to transfer all of your banking activities or only some of them to another bank––for example, making deposits in another bank, transferring only your current account activity, obtaining loans in another bank, or obtaining a credit card issued directly by a credit card company, and not by the bank in which the account is managed.

Transferring all your banking activity to another bank and closing the activity in the transferring bank

In order to transfer all your banking activity from one bank to another, you must implement the following actions:

  • Provide the transferring bank with instructions on how to act with regard to all the existing assets and/or liabilities at that bank.
  • Return all means of payment to the transferring bank (credit cards and information on unused checks).
  • Cancel payment orders in the account (standing orders and debits by authorization).
  • Cover all the existing liabilities vis-à-vis the bank and those which the bank has undertaken for you vis-à-vis third parties.
  • Sign the form to close the account at the bank.

After closure of the account, you will receive notification from the bank that your account has been closed.

Transferring part of the activity to another bank while retaining assets or obligations in the transferring bank

You may wish to transfer only part of his activity to another bank. In such cases, if it only entails the transfer of the current activity from the account, the following options are available to you:

  • Current account- If you are transferring the activity in your current account, but are leaving a loan, deposit, savings plan or a positive balance to pay future debits on a credit card in the transferring bank, you can instruct the bank to close only the current account activity and ascertain that the remaining account is classified as one that will not be charged with management fees for a current account.
  • Loans- If the account contains security that is satisfactory to the transferring bank for the loans that you have taken out, it is obligated to enable you to continue to pay the loans through your account in the new bank.
  • Deposits and savings- If you leave savings and deposits in the transferring bank, whose date of maturity has not yet arrived, you can instruct the bank to transfer the deposits to be paid, when they mature, directly to your new bank account.

Transferring credit card activity

For the most part, when an account is closed, the customer is also required to transfer his credit card activity, since the card in his possession was issued by the transferring bank in which the account was closed. In such cases, the bank supervision regulations specify the process of issuing the new credit card and transferring the activity of continuing transactions.

The new credit card issuer will transfer the information on the new credit card to the old credit card issuer, which will work with the suppliers to transfer the continuing transactions on the card (such as a newspaper subscription) to the new card.

After the old issuer has worked with suppliers to transfer the continuing transactions from the old card to the new one, it must notify you if there are suppliers that did not act in accordance with its instructions, and continued to transfer debits to the old credit card that was in your possession.

Restriction on the amount of the fees charged in the process of closing an account and transferring the activity

  • The total fees involved in transferring the activity to another bank resulting from closure of an account are limited to NIS 40 (not including the fee for early payment and expenses applying to the account, such as payment to a third party).
  • The total fees involved in transferring the activity on a credit card resulting from closure of an account are limited to an additional NIS 40.

These limits are anchored in the Banking Rules (Customer Service) (Fees), 5768 - 2008 (in Hebrew).

Subject to the aforementioned limit, below are details of the fees charged for the actions entailed in closure of a current account and transfer of the activity to another bank:

Service Fee
Cancelling authorization to debit the account or standing orders In the case of cancellation of authorization to debit an account or a standing order before at least 6 debits have been implemented, the banking corporation is entitled to charge a minimum fee for 6 transactions made through a direct channel.
Outgoing wire currency transfer Fee for transactions made through a direct channel or a transaction by a clerk, in accordance with the channel in which the transaction will be implemented.
Return of post-dated checks to the depositor The fee for returning post-dated checks to the depositor following closure of an account may not exceed NIS 5.
Transfer of securities to the account of the same customer in another bank NIS 5 with the addition of actual expenses for implementing the transaction.
Transfer of foreign currency to the account of the same customer in another bank The fee for transferring foreign currency to the account of the same customer in another bank in Israel, in the event of closure of an account, may not exceed NIS 10.