The default track and changes to Savings for Every Child
The default track in Savings for Every Child determines where the money is managed when parents do not actively choose. It changed over the years from a bank account to a higher-risk Kupat Gemel. This page explains how the joining year affects the savings, what changed in the 2025 reform and which actions can improve the child’s savings potential.
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If you do not actively choose where your child's savings will be managed, the state does not wait. It decides for you according to a "default" track. That default has changed over the years for a reason. The changes directly affect the amount waiting for your child at age 18.
The program's history: where was the money deposited automatically?
When the Savings for Every Child program was launched in 2017, the state allowed parents to choose actively between bank savings and a Kupat Gemel (קופת גמל).
To understand where your child's money is held today, check when the child joined the program:
The default according to the joining date
| Feature | Joined from 2017 through the end of 2022 | Joined from January 2023 onward |
|---|---|---|
| Default | During these years, the automatic default was bank savings. If the parents made no decision, the money was automatically directed to a conservative bank track, often without the parents realizing it. | For younger children, the state changed its approach and made a higher-risk Kupat Gemel track the new default. |
The financial gap: why did the state change the default?
Over the years, a significant gap emerged between children whose savings were managed in a Kupat Gemel and children whose savings were held at a bank. Over time, provident funds—especially tracks with greater exposure to the capital market—historically produced significantly higher returns than bank savings. In some cases, the gaps accumulated over the years were dramatic and reached as much as three times the amount.
The 2025 reform: a major opportunity for bank savers
Despite the default change in 2023, a complex problem remained: hundreds of thousands of children born earlier were locked into the bank track. Under the original program rules, once savings were opened at a bank, the accumulated money could not be transferred to a Kupat Gemel before the savings period ended.
To address this, a significant legislative change took effect on January 1, 2025 and changed the rules for bank savers:
What remains at the bank and what moves to a Kupat Gemel?
| Feature | What has already accumulated at the bank—the past | New deposits—the future |
|---|---|---|
| What happens to the money? | It remains at the bank. The money deposited there in the past still cannot legally be transferred. | Once you choose this option, all future Bituach Leumi (ביטוח לאומי) deposits are redirected to and deposited in a Kupat Gemel. |
Practical guide: what should you do if your child's savings are at a bank?
If you discover that your child's savings are currently managed at a bank, do not leave the situation unchanged. Consider several active steps:
- Check precisely: Use the personal area on the Bituach Leumi website to see where and by which body each child's savings are currently managed.
- Use the 2025 reform: Request that future deposits be transferred from the bank to a Kupat Gemel, especially for younger children who still have many years to save.
- Consider opening additional complementary savings: A separate Kupat Gemel LeHashkaaA flexible savings vehicle that allows withdrawal at any time, or receipt of a tax-exempt pension after age 60. can increase the capital available to the child in the future.
- Make sure you activated the additional deposit: Check whether you approved adding another NIS 57 each month from your regular child allowance to the savings, doubling the power of the monthly deposit.
Continue learning about your child's savings
Review the program, its available tracks and the choices that can affect the amount your child receives in the future.
The bottom line
Do not assume that your child's savings are managed optimally simply because the program is run by the state. In the past, the state automatically locked the money into banks at low interest rates. Today, the default is a higher-risk Kupat Gemel track intended to maximize the potential returnThe profit (or loss) from an investment over a certain period, usually expressed as a percentage of the original amount invested. over the years. If your child was born before 2023 and remains in the old bank track, the 2025 reform finally lets you take control and direct future deposits to the capital market.
Frequently asked questions
Is a higher-risk track not too dangerous for my child?
The track is more volatile and experiences periods of market decline. The state nevertheless selected it as the default because the program has a very long investment horizon of almost two decades. This horizon gives the market time to recover and grow and has historically produced significantly higher returns than conservative channels.
If my child is at a bank and I request a move to a Kupat Gemel, does all the accumulated money move?
No. Money accumulated in the past remains locked at the bank until withdrawal age and cannot be transferred. The change affects only new monthly deposits beginning in the following month.
If I have never touched the savings, how can I know where my child's money is?
It depends mainly on the child's year of birth. Most children who joined the program before 2023 are at a bank by default, while children who joined later were automatically directed to a Kupat Gemel. The safest approach is to enter the personal area on the Bituach Leumi website and check the name of the managing body.
In summary
The history of Savings for Every Child shows that parental inaction can cost children tens of thousands of shekels. The state corrected the default for younger children and, beginning in 2025, created an opportunity to improve matters for older children. The responsibility to take the practical step, enter the Bituach Leumi website and check the account remains entirely yours.