As of January 2017, the National Insurance Institute will open a personal savings plan for each child entitled to a child allowance - the savings plan will be managed in the bank or a provident fund of your choice.
The National Insurance Institute will deposit NIS 50 every month for every child, until they reach the age of 18.
You, the parents, will be able to add an additional NIS 50 per month, which will be paid from the child's allowance, so that the amount of monthly savings will be double and amount to NIS 100 a month.
When your child reaches the age of 18, the National Insurance Institute will deposit a NIS 500 grant in the savings plan. The funds accumulated in the savings plan will be made available to the child, who shall be allowed to withdraw them with his/her parent's consent.
If the amount accumulated in the savings account is not withdrawn before the child’s 21st birthday, the National Insurance Institute will deposit an additional NIS 500 grant into the saving account and the child will be able to withdraw their savings at their own discretion.
Choose from six savings plans at a fixed /variable interest rate linked to the CPI with the option of switching to a different plan with exit points / without the option of switching plans (without the exit points).
Opening the savings account, selecting the plan and/ or doubling the monthly amount can only be executed on the National Insurance Website.
For additional information regarding the plan, visit the designated website on the Ministry of Finances website at hly.gov.il