Savings for Every Child: The Complete Guide to the National Program
The Savings for Every Child program allows every child in Israel to begin adulthood with money accumulated for them over the years. This page explains how deposits and grants work, the difference between bank savings and a provident fund, when the money can be withdrawn, and which decisions can significantly affect the amount waiting for the child in the future.
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Since 2017, the state has been depositing money for every child in Israel under the "Savings for Every Child" program, with the aim of helping young people begin their adult lives with a significant sum of money—for education, a driver's license, a big trip, an apartment, a business, or any other purpose.
However, despite this being one of the most important savings plans for children, many parents do not know where the money is managed, which track it is invested in, whether it is worthwhile to double the deposit, or how different choices may dramatically affect the final amount the child will receive in the future.
The Savings for Every Child program is a golden opportunity to create initial capital for your children with full or partial state funding. On this page, we will learn how the program's financial mechanism works, examine the critical difference between managing the money at a bank and managing it in a Kupat Gemel LeHashkaa (קופת גמל להשקעה), and understand why the decision to double the monthly deposit amount is one of the most worthwhile financial actions you can take for their financial future.
What is the Savings for Every Child program?
The "Savings for Every Child" program was launched by the state in January 2017, with the aim of reducing disparities and enabling every child to begin adult life with a certain financial foundation. Under the program, the National Insurance Institute deposits money each month for every child into a dedicated savings account.
The money is managed through one of two options chosen by the parents:
- Bank savings: in a pre-set fixed or variable interestThe "price of money" – the amount paid for the use of someone else’s money, as income to the depositor or as a cost to the borrower. track (linked or unlinked to the index).
- Kupat Gemel LeHashkaa (קופת גמל להשקעה): where the money is invested in the capital market according to the risk level of the selected track.
How much money is deposited each month?
The National Insurance Institute deposits a fixed monthly amount for every child. As of 2026, the base amount is 57 NIS per month. In addition, parents may choose to double the amount using their child allowance.
To understand the significance, here are the two available deposit options:
Two deposit options
| Feature | Basic option (default) | Expanded option (doubled deposit) |
|---|---|---|
| State deposit | 57 NIS per month | 57 NIS per month |
| Parents' deposit | 0 NIS | 57 NIS per month (from the child allowance) |
| Total monthly savings | 57 NIS per month | 114 NIS per month |
Which grants are received from the state?
In addition to the ongoing monthly deposits, the state provides special milestone grants at certain ages to encourage leaving the money in savings. The amount and timing of the grants depend directly on the child's year of birth:
Children born before 1.1.2017
- Grant at age 18: a total of 568 ₪, paid automatically.
- Grant at age 21: an additional total of 568 ₪, provided the money has not been withdrawn beforehand.
Children born after 1.1.2017
- Grant at age 3: a total of 284 ₪.
- Bar/Bat Mitzvah grant: a total of 284 ₪ at age 12 for girls and age 13 for boys.
- Final grant at age 21: a total of 568 ₪, provided the money has not been withdrawn earlier.
When and under what conditions can the money be withdrawn?
The savings legally belong to the child, but the program rules set clear age restrictions on withdrawal dates and the money's liquidityThe speed and ease with which money can be withdrawn from an investment and converted into cash in a bank account without significant penalties.:
Savings withdrawal dates
| Feature | From age 18 to 21 | From age 21 onward |
|---|---|---|
| Who may withdraw? | The child may withdraw the money. | The money is available only to the child. |
| Is parental approval required? | Withdrawal is conditional upon obtaining signed approval from one parent. | No approval, signature, or involvement from the parents is required. |
| Liquidity of the money | Withdrawal is subject to the program's restrictions. | The money becomes fully liquid. |
Management fees and taxation: how much does it cost?
Management fees
This is one of the program's greatest consumer benefits. Until the child reaches age 21, the National Insurance Institute pays and fully covers the management fees (both at banks and in Kupat Gemel funds). Not a single shekel is deducted from the child's savings. From age 21 onward, if the money remains in the account and is not withdrawn, management fees will begin to be charged from the accumulated balance according to the rate set by the managing entity.
Taxation
When money is withdrawn from the plan, a real capital gains tax of 25% is paid on the profit only. In other words, no tax is paid on the Principal amounts deposited over the years, only on the net profit generated in the account after adjustment for the InflationA process of general price increases that reduces the purchasing power of money (the same amount of money buys fewer products). index.
Guide: How to check where your child's savings are held
We have prepared a detailed guide on how to find your child's savings plan.
The bottom line,
The Savings for Every Child program is a long-term savings plan to which the state deposits money each month for every child, funded by the state (and partly by you if you chose to increase it). Although the monthly amounts may seem small and negligible, over the years they accumulate into tens of thousands of shekels, net—especially if you take an active step, choose a suitable investment track (such as Kupat Gemel LeHashkaa (קופת גמל להשקעה)), and properly use the option to double the deposit.
Frequently asked questions
Is choosing a track mandatory?
No, but it is highly recommended. If the parents do not choose a track and a managing institution within 6 months of the child's birth, the state will deposit the money automatically according to the default track established by law (based on the child's age and the updated regulations).
Is it advisable to double the amount?
This naturally depends on the family's financial ability, but for most families it is one of the most worthwhile financial moves. An amount of 57 NIS is barely noticeable in the regular budget, but doubling it creates highly significant future capital for the child thanks to the Compound interest effect.
Can the savings track or managing institution be changed later on?
Yes, but this depends on where the money is currently managed. If the money is managed in a Kupat Gemel LeHashkaa (קופת גמל להשקעה), you can switch among different risk tracks and even move to a competing provident fund company at any time. By contrast, if the savings were opened at a bank, it is a completely closed track—you cannot move to another bank, cannot move to a provident fund, and cannot change the selected type of Interest.
Can the savings really reach tens of thousands of shekels?
Yes. Over 18 to 21 years, especially when parents choose to double the deposit and select equity-oriented tracks in provident funds, the combination of Returns and scheduled state grants brings the account balance to substantial and highly meaningful amounts.
In summary,
The Savings for Every Child program is one of the most important tools for building a financial future for Israel's next generation. To get the most out of it, parents must not leave the program on "autopilot" without understanding the rules of the game. A simple check of where the money is held, increasing the deposit, and adjusting the risk level are the actions that will ensure this money works in the best possible way for your children.