5 Key Banking and Currency Exchange Tips for a Smooth Financial Aliyah

Most of us probably keep a bank account outside of Israel. So, what can we do to ensure our “financial Aliyah” goes smoothly?

Making Aliyah is an exciting and life-changing experience. However, while the emotional and cultural transition is often the focus, the financial aspect of Aliyah is just as important. Dealing with Israeli banks, transferring money, and navigating exchange rates can be challenging if you’re not prepared. To help you stay in control of your finances and make your transition as smooth as possible, we’ve compiled five key banking and currency exchange tips to consider before and after making Aliyah. 

1. Inform Your Home Bank Before Making Aliyah 

Many new Olim assume that transferring money from their home country to Israel is as simple as logging into online banking and initiating a wire transfer. However, banks outside of Israel often have strict security protocols that may require in-person authorization to complete international transactions. If you don’t make the necessary arrangements beforehand, you might find yourself unable to move your money when you need it most.

What you should do: 

• Notify your bank about your move and confirm that you’ll be making international transactions. 

• Check if your bank requires in-person authorization for wire transfers. 

• Ensure you have online banking access and update your contact details. 

• Set up a power of attorney or trusted person who can act on your behalf if necessary. 

  
  

Being proactive will save you from unnecessary stress and ensure that your funds are accessible when needed. 

2. Understand the Costs of Transferring Money to Israel 

Moving money across borders isn’t free, and many banks charge hefty fees for international wire transfers. These costs can add up quickly, especially when transferring large sums for major expenses such as real estate purchases or setting up a business. 

Typical transfer costs include: 

• International wire transfer fees – Around $40 from the U.S. and £20 from the U.K. 

• Israeli bank receiving fees – Typically between $20 and $150 per transaction. 

• Currency exchange commission – Banks often take a cut by offering less favorable exchange rates compared to specialized currency providers. 

  
  

At ISRATRANSFER, we eliminate hidden fees and offer better exchange rates than banks. By working with a specialist, you can significantly reduce the cost of transferring money to Israel, ensuring you get the best value for your funds. 

3. Budgeting and Currency Exchange Rate Fluctuations

Exchange rate fluctuations in the shekel can affect budgeting for buying a home or making other large transfers. For example, you have budget of 12,000 Shekels per month. Assuming an exchange rate of 4.0, you are setting your budget at $3000 per month to live off. However, in reality the exchange rate can and will change as it does every few seconds. It is best to work your budget on a worst case scenario rate of around 3.2 (about the lowest in a few years) to ensure you are safe from any fluctuations within that range.

Exchange rate fluctuations in the shekel can affect budgeting for buying a home or making other large transfers. For example, you have budget of 12,000 Shekels per month. Assuming an exchange rate of 4.0, you are setting your budget at $3000 per month to live off. However, in reality the exchange rate can and will change as it does every few seconds. It is best to work your budget on a worst case scenario rate of around 3.2 (about the lowest in a few years) to ensure you are safe from any fluctuations within that range.

4. Forward Planning

If you are making large purchases, you need to be aware of how fast exchange rates move. As we noted, the rate changes constantly, so the more time you give yourself to make a decision, the better chance you will see better rates which you can take advantage of. If you leave yourself only a few days to convert the funds, you can end up with a poor rate and without much choice but to convert.

5. Avoid Using Checks

Checks are a main source of converting funds into Shekels. While they can be easier to cash and convert for the average customer, they are more costly than other options, sometimes running from 1-2 percent in total charges. It is especially good practice to avoid checks for larger amounts as you can run into potential issues.

Final Thoughts:

Making Aliyah is an exciting milestone, and getting your finances in order is a crucial part of a smooth transition. By understanding the Israeli banking system, staying informed about exchange rates, and working with a trusted currency transfer partner like IsraTransfer, you can navigate the financial side of your move with confidence.

Planning ahead and making smart financial decisions will set you up for success in your new home. If you have any questions or need expert guidance on transferring your funds to Israel efficiently, our team is here to help.

Ready to take the next step?

Contact us today to make your financial Aliyah seamless and stress-free!