Israel | Banks have achieved the abolition of their exclusion from the “Savings for Every Child” program

The Knesset Finance Committee, which was considering an amendment to the law on the “Savings for Every Child” savings program, which was supposed to exclude banks from the list of institutions where such a program could be run, ultimately abandoned the idea.

Instead of excluding banks from the program entirely, it was decided to change the amendment, allowing parents who opened a savings program at a bank to then transfer it to a pension or investment fund. Until now, the transfer was only possible between banks or between funds, but not from one type of structure to another.

Since the program was launched, savings in banks have brought in significantly lower profits. Moreover, the choice in favor of banks was made mainly by families from socially weaker strata of the population.