Bank Hapoalim (TASE: POLI) has announced a package of benefits in response to the pressure on the banks by Bank of Israel Governor Prof. Amir Yaron and proposed legislation by MKs and ministers. In contrast to the other major banks in Israel, except Israel Discount Bank (TASE: DSCT), which is yet to make an announcement on the matter, Hapoalim is not offering interest on current accounts but is returning to the format of offsetting the days of a positive balance in the account with the days in overdraft, thus combining two of the Bank of Israel's demands of paying interest on current accounts and lowering interest on overdrafts.
The product targets hundreds of thousands of private customers who are in credit balances part of the month and in overdraft for other parts of the month, reducing interest paid on the debit balances. This means that a customer who is not in the red at all, and whose balance is positive for the entire month, will receive no benefits. Hapoalim will also reduce the interest paid on some overdrafts.
First Int'l Bank to Pay 2% interest on current accounts
First International Bank of Israel (TASE:FTIN1; FTIN5) is following in the footsteps of Bank Leumi (TASE:LUMI) and Mizrahi Tefahot Bank and paying interest on positive current account balances. The bank will pay between 1.8% and 2.2% on balances of up to NIS 25,000 starting July 1 for customers who pay their salaries into the account or whose financial assets with the bank - current account, securities and deposits - do not exceed NIS 50,000.
Published by Globes, Israel business news - en.globes.co.il - on July 2, 2023.
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