FROM THE ONE ZERO APP. A new move backed by attractive interest rates/ONE ZERO
ONE ZERO Bank recently completed its first year of activity, which it notes, among other things, by providing customers of One and One+ bank's private banking with the most lucrative deposit in Israel with daily liquidity (one that can be withdrawn every business day plus the interest accrued as of that date). This interest rate is more than four times higher than the average interest rate on daily deposits in the banking system, which is about 4 percent.
One and One+ customers will be able to activate automatic savings rules (for example, a regular transfer from a current account above a certain threshold to be set) or make a one-time deposit to save through the app without a deposit ceiling or additional small print, such as a salary transfer.
One and One+ customers (which includes a trading package for securities traders) enjoy smart money management services, a daily scan of the account, regular updates on everything happening in the account and recommendations for handling for customers, along with the possibility of consulting with the bank's money managers 1/24.
In return for a fixed monthly payment, customers enjoy an exemption from an expanded commission package that includes, among other things, a credit card with 6% of foreign exchange fees, exemption from purchase and transfer fees in the account, and do not pay a shift fee on their securities.
For most ONE and ONE+ customers, the additional interest granted by savings beyond the interest offered in the alternatives currently available in the banking system will cover the annual subscription fees, which save hundreds and thousands of shekels a year on foreign exchange fees, securities, guarantees and more. [Calculation attached as appendix in separate file]
The new deposit is part of the Bank's strategy to provide its customers with services and products that are currently available only to wealthy individuals who have large sums of money and accordingly bargaining power. In addition, the deposit provides a response to households' growing liquidity needs during a period of rising prices and an increase in mortgage repayments. Customers will benefit from a deposit bearing high interest that is currently given to most customers only on condition that they close the money for at least a year and can withdraw the money plus the interest accrued each business day.
Today, such a solution of daily liquidity at high interest rates exists for the public only through the purchase of monetary mutual funds that deposit most of their investors' money in bank deposits.
Gal Bar Dea, CEO of ONE ZERO Bank/Yanai Yechiel
The main difference between monetary funds and bank deposits is in taxation (income of a monetary fund is taxed at 25% on real profits - that is, minus inflation in the period between the date of deposit and realization - while income from a deposit is taxed at 15% on nominal profits).
Monetary funds also charge management fees, but these are usually low. For the first time, bank customers will also be able to enjoy high interest rates on daily liquidity deposits.
Bank customers can switch between the tracks each month and enjoy the interest they have accrued at that point in time on the deposit.
The Bank offers two additional deposits to all customers: one with monthly liquidity at the highest interest rate in Israel of 3.85% and one annually at an interest rate of 4.75%. The Bank's three deposits are based on variable interest rates, which are updated in accordance with the change in the Bank of Israel's interest rate.
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