Bank Hapoalim (TASE: POLI) is giving its customers money. In a precedent-setting measure in the Israeli banking industry, the bank today launched "growth accounts", a six-year savings plan in which the customer has no obligations, not even to make matching deposits.
It is estimated that the plan will cost the bank tens of millions of shekels.
Bank Hapoalim will open a special growth account for each customer who has a checking account into which is deposited a monthly salary of at least NIS 5,000 (equivalent to a gross salary of about NIS 7,000). The bank will deposit NIS 100 a year into the growth account for six years. If a customer sets up a standing bank order to add deposit money into the special growth account, Bank Hapoalim will add yet another NIS 100 per year into the account.
The customer is not required to make any commitment and can suspend the service in the account at any time.
Bank Hapoalim will give customers additional grants to mark special occasions, such as NIS 360 for a wedding and NIS 100 for the birth of a child.
The six-year program has annual exit points after three years, at which point a customer can withdraw the grants.
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2010
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