israeliflag

I believe that it is important to understand your Israeli bills, bank statements  pension and mortgage statements. They are all part of your process to gaining financial clarity, and living financially smarter in Israel.

At the “Banking in Israel” lectures I hand out a Hebrew- English glossary, its been so useful I thought I’d add a Hebrew financial glossary to the web site.

קרן השתלמות Keren Hishtalmut -A (almost) tax free savings plan, money will deposited directly from your salary, this used to be for “Hishtalmut”= further education purposes but after six years you are entitled to take the money out for any purpose. This is a work benefit that many employers offer, but is not mandatory.

קופת גמל Kupat Gemel – Long term savings plan, now you are required to leave the money here for retirement.  Compare Kupot Gemel

קרן פנסיה Keren Pensia Pension Fund – All employers must deposit into a pension fund for their employees. When you move to a job your pension fund moves with you and after 3 months at the new job you are entitled to pension fund deposits retroactively from the first month. If you didn’t have a pension fund you are entitled to one after 6 months.

מט”ח Matach – If you hold any currency other than Shekels in you Israeli bank account, this would be called a Matach account.

פיקדון Pikadon – Bank savings plan, you close your money for a predefined period of time to receive interest (this bank product is considered risk free, the interest rate will generally be low)

צמוד מדד Tzamood Madad – this normally refers to something linked to inflation, (consumer price index), but could be linked to a different index.

טופס 106 Tofes 106 – A document employees receive from all their employers for each tax year, proving they were paid, showing all the tax, pension and “Bituach Leumi” (National Insurance) paid. Keep these forever!!!