The banks' war for retail customers is continuing. Union Bank of Israel (TASE: UNON), run by CEO Haim Freilichman, today announced that it will offer interest on balances in checking accounts and not charge interest on overdrafts. Union Bank is Israel's sixth largest bank.
The benefits will be offered to people who open checking accounts into which they directly deposit their salaries, and promise to keep it for three years. The benefits are subject to the account meeting threshold conditions, and the bank will review the account's status each month.
The campaign is valid through September 30, but may be extended. Union Bank is directing the campaign towards customers of other banks as well as towards Union Bank customers who currently do not deposit their salaries into their accounts at the bank. Union Bank is thus expanding its "Your second first bank" campaign.
Union Bank is offering the following benefits: 3% credit interest on the balance in a checking account up to the amount of the salary; an exemption on overdrafts up to the amount of the salary; an exemption on the clerk's bank fee for cash deposits and withdrawals, payments of bills, transfer to or deposit into another account, print-outs requested by the customer, and the deposit or writing of checks (including cash checks) up to 20 checks of each type.
On the other hand, Union Bank's fees pricelist indicates that the fees for direct services are the most expensive among the banks, up to NIS 2.90 per transaction.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2008
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