Savings for Every Child: the complete guide to Israel's national program
Savings for Every Child allows every child in Israel to begin adult life with money accumulated over the years. This page explains the deposits and grants, the difference between bank savings and a provident fund, when the money can be withdrawn and which decisions can significantly affect the amount waiting for the child.
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Since 2017, the state has deposited money for every child in Israel through Savings for Every Child (חיסכון לכל ילד). The program is intended to help young people begin adult life with a meaningful amount for studies, a driving license, a major trip, a home, a business or any other purpose.
Although this is one of the most important savings programs for children, many parents do not know where the money is managed, which track it follows, whether the deposit should be doubled or how different choices may dramatically affect the final amount.
Savings for Every Child is an opportunity to build initial capital for your children with full or partial state funding. This page explains the program's financial mechanism, the critical difference between managing the money in a bank and in a provident fund, and why doubling the monthly deposit can be one of the most worthwhile financial actions for their future.
What is Savings for Every Child?
The program was launched by the state in January 2017 to reduce gaps and allow every child to begin adult life with a financial foundation. Bituach Leumi (ביטוח לאומי), Israel's National InsuranceA contract under which an insurance company undertakes to compensate the insured in the event of damage in exchange for a periodic payment. 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: At a predefined fixed or variable interest rateThe "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., linked or unlinked to the Consumer Price Index.
- Provident fund: The money is invested in the capital market according to the risk level of the selected track.
How much is deposited each month?
Bituach Leumi deposits a fixed monthly amount for every child. As of 2026, the basic amount is NIS 57 a month. Parents may choose to double the amount from their child allowance.
There are two deposit options:
Two deposit options
| Feature | Basic option, the default | Increased option, with the deposit doubled |
|---|---|---|
| State deposit | NIS 57 a month | NIS 57 a month |
| Parents' deposit | NIS 0 | NIS 57 a month from the child allowance |
| Total monthly savings | NIS 57 a month | NIS 114 a month |
Which grants does the state provide?
In addition to the regular monthly deposits, the state provides special grants at particular ages to encourage keeping the money invested. The amounts and timing depend directly on the child's year of birth.
Children born before January 1, 2017
- Grant at age 18: NIS 568, paid automatically.
- Grant at age 21: An additional NIS 568, provided the money was not withdrawn earlier.
Children born after January 1, 2017
- Grant at age 3: NIS 284.
- Bar or Bat Mitzvah grant: NIS 284 at age 12 for girls and age 13 for boys.
- Final grant at age 21: NIS 568, provided the money was not withdrawn earlier.
When and under what conditions can the money be withdrawn?
The savings legally belong to the child, but the program has clear age restrictions for withdrawals and 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 to the child alone |
| Is parental approval required? | A signed approval from one parent is mandatory | No parental approval, signature or involvement is required |
| Liquidity | Withdrawal is subject to the program's restrictions | The money becomes fully liquid |
Management fees and tax: what does it cost?
Management fees
One of the program's greatest consumer advantages is that until the child reaches age 21, Bituach Leumi pays the management fees in full, both at banks and provident funds. No money is deducted from the child's savings. From age 21, if the money remains in the account, management fees begin to be charged from the accumulated balance at the management company's rate.
Tax
When the money is withdrawn, real capital gains tax of 25% is paid on the profit alone. There is no tax on the principal deposited over the years, only on the net profit created after adjusting for inflationA process of general price increases that reduces the purchasing power of money (the same amount of money buys fewer products)..
How to find where the child's savings are managed
Review the child-savings information and the steps for finding where the program is managed.
Bottom line
Savings for Every Child is a long-term plan into which the state deposits money for every child each month, with partial funding by you if you choose to increase it. Although the monthly amounts may appear small, over time they can accumulate into tens of thousands of shekels—especially when parents take an active role, choose a suitable investment track such as a provident fund and use the option to double the deposit.
Frequently asked questions
Must parents choose a track?
No, but it is highly recommended. If the parents do not choose a track and management company within six months of the child's birth, the state will deposit the money automatically according to the default set by law, based on the child's age and the current regulations.
Is it worthwhile to double the amount?
This depends on the family's financial ability, but for many families it can be one of the most worthwhile financial steps. NIS 57 may barely be felt in the current budget, while doubling the deposit can create significant future capital through compound interest.
Can the savings track or management company be changed later?
Yes, but the answer depends on where the money is managed. If it is in a provident fund, you can move between risk tracks and even transfer to a competing provident-fund company at any time. If the savings were opened at a bank, the track is completely locked: you cannot move to another bank, move the existing balance to a provident fund or change the chosen type of interest.
Can the savings really reach tens of thousands of shekels?
Yes. Over 18 to 21 years, especially when parents double the deposit and choose equity-oriented provident-fund tracks, the combination of returns and scheduled state grants can build a significant balance.
Summary
Savings for Every Child is one of Israel's most important tools for building the financial future of the next generation. To make the most of it, parents should not leave the program on autopilot without understanding the rules. Checking where the money is managed, increasing the deposit and matching the risk level are the actions that can help the money work as effectively as possible for your children.