Short Term Household Investments in Solid Vehicles

Households increased their investments in money funds and Makam in view of the rising interest level. These vehicles, however, account for only 14 percent of total solid NIS savings and investments, which include NIS time deposits and current accounts in addition to NIS money funds and Makam. Most solid investments remained in bank deposits, which also grew during the period examined. In response to the increases in the Bank of Israel rate, households diverted funds from current accounts to interest-earning time deposits but retained a sizable portion of their savings in current accounts, most of which do not pay interest. The concentration of the Israeli economy is manifested in the holding of most income and wealth by a small share of the population. This is also reflected in the concentration of investments in money funds; thus, as of December 2024, only 366,000 household accounts had holdings in NIS money funds, as against some four million household accounts that held deposits and/or maintained positive current balances. Most households (96 percent) hold money funds via their  bank accounts. Also, when they make their investments via their bank, they invest larger sums