The zero interest rate on money lying in checking accounts is increasing pressure on the banks from both the public and regulators, and today Bank Hapoalim (TASE: POLI) announced that the Bit app will introduce deposits, offering a relatively attractive interest rate.
Bit will pay an annual interest rate of 4%, for those who deposit money for three months, without the possibility of withdrawal. This is an interest rate that will be offered up to a maximum deposit amount of NIS 20,000. That is, up to NIS 800 shekels in interest per year (before tax), and this is for those who renewed the deposit during the year each time it was repaid.
This is an intensification in competition for money that the public deposits in deposits. For example, credit card company Max offers an interest rate of 3% to those who deposit money with it in an account that is similar to a checking account. About two weeks ago, it launched an account option that it called “Accumulator and Retainer”. In the case of Max, it will be possible to deposit a much larger amount of up to NIS 500,000, but the interest rate is less attractive.
The money is closed without the option to withdraw
Bank Hapoalim noted that for several weeks, the option has been available to create “pockets” that can receive and transfer money separately from the main balance in the Bit application. This way, users can manage Bit and open those pockets for business, for saving for a vacation or a family event, etc. In addition, a new ability will be added that allows users to add money to the app using a credit card.
The Bit app allows customers to deposit money in those savings pockets so that it accumulates interest in designated deposits. At this stage, it will soon be possible to deposit money into a deposit at a fixed annual interest rate of 4% for three months without the possibility of withdrawal. The minimum deposit amount is 10 NIS, and the maximum amount for deposit is NIS 20,000 (which is the maximum balance in the application). After three months, the principal and interest will be automatically repaid and transferred to the balance in the app, or to the bank account entered by the user in Bit, if the amount exceeds the balance limit in the app.
Hapoalim also said the changes will be updated in a new version of the app that will be launched in the coming weeks.
Discount Bank’s rival app PayBox has been paying annual interest of 2.5% on balances for a some time, but it is necessary to receive a credit card for this purpose (without management fees). With PayBox, there is no need to lock the money in a fixed-term deposit, with the interest rate reaching 5% for those who make transactions over NIS 2,000 per month. The interest is granted monthly directly to the balance in the app.
Published by Globes, Israel business news – en.globes.co.il – on November 3, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
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