Israel’s biggest banks have already handed out almost two-thirds of the NIS 3 billion they committed to transfer to the public through benefits, within two years. This is part of a voluntary plan adopted in April 2025 by the banks to help customers in an era of high interest rates, and high profits for the banks.
By the end of the first quarter of 2026, the banks had distributed benefits to households and small businesses amounting to NIS 1.4 billion – just less than half the amount set in the plan. However, the pace has since increased, and now the banks are expected to complete the distribution of benefits worth NIS 1.9 billion by the end of the second quarter next week, about 63% of the amount that will be distributed to the public. After that, by the end of the first quarter of 2027, the banks will be required to hand out another NIS 1.1 billion in benefits to customers.
The handouts were introduced by the banks after public criticism about their profit margins during the high-interest years (over NIS 30 billion in total in 2025), which also led the Ministry of Finance to impose a surtax on them. The five largest banks ended the first quarter of 2026 with a combined net profit of NIS 7 billion – an amount that equals their annual profit at the beginning of the decade.
The distribution of benefits was set in a manner consistent with each bank’s profits, with the Bank of Israel approving the various benefits offered to the public and examining their compliance with the benefit distribution targets.
Bank Leumi, which distributed benefits to the public in the first quarter worth only NIS 20 million – significantly lower than the quarterly rate required for it (over NIS 100 million), accelerated the pace towards the end of the current quarter. Evidence of this was a message that some of its customers received in recent days, in which they were informed of a NIS 700 grant that would be paid to them as part of the plan, in cash and directly to their account.
The benefit is intended for those who transfer an average salary of NIS 5,000 or more, use the bank’s credit card for a similar amount, and hold a mortgage of over a year or a deposit for over six months. In addition, the bank has granted debt relief to customers who encountered difficulties, among other things due to the war. The total cost of Leumi’s new benefits is estimated at NIS 150 million – NIS 200 million.
This is not the first time that Leumi has taken this step. In October 2025, it distributed a NIS 500 grant to customers who met certain conditions. The current grant is 40% higher than the previous one and reflects Leumi’s need to close the gaps. The bank is expected to conclude the second quarter with a (cumulative) distribution of NIS 590 million in benefits, which will put it at a distribution rate of 73% of the plan, the highest among other banks (according to estimates).
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The public benefits plan, initiated by Supervisor of Banks by Dani Hahiashvili, announced in March 2025, is officially voluntary – meaning that banks can choose whether to adopt it. In practice, the five largest banks (Leumi, Hapoalim, Mizrahi-Tefahot, Discount and Binleumi) joined it alongside three other smaller ones (Mercantile, Yahav and Massad).
Each bank has built a mix of benefits according to its business discretion in the areas of credit, mortgages, overdrafts, current account fees and deposits. The regulator’s requirement for banks is, among other things, that the public should not have to make an effort to receive the money, meaning that those who are eligible will receive the amount in their accounts, and that there should be maximum transparency.
The banks report quarterly on the benefits they have distributed. Among other things, Hapoalim distributed NIS 500 as a grant to eligible customers in the first quarter, and in previous schemes it offered a first mortgage payment refund of up to NIS 5,000. Another notable move took place in August 2025, when the bank distributed two of its own shares to each customer – and those who did not want it could receive NIS 100 in cash instead (the distribution of shares was not counted in the scheme, only the cash payment). The value of the two shares at the time of the announcement was NIS 124 and currently stands at NIS 135.
Bank Mizrahi Tefahot launched the “Minus on Us” track, in which private customers who hold a mortgage and a credit line are exempt from interest on overdrafts up to the amount of the mortgage repayment or up to NIS 6,000 per month – whichever is lower. The bank also granted a one-time grant called “Boost for Business” of up to NIS 30,000 for businesses in the northern region and for business owners serving in the reserves.
Israel Discount Bank offered a 3% interest rate on overdrafts for accounts with a shekel balance of up to NIS 10,000, provided that the total assets in the bank do not exceed NIS 30,000. In the first quarter, First International Bank granted a 1% reduction in overdraft interest and 1,500 points on the Beyond card for flights abroad. In the current quarter, the bank is offering a 2% interest rate on overdrafts on balances of up to NIS 10,000.
Published by Globes, Israel business news – en.globes.co.il – on June 22, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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