Save here: The National Insurance Institute's Research and Planning Administration published the report on a savings plan for every child, launched in 2017 by the Ministry of Finance and the National Insurance Institute.
The report shows data on the investment tracks chosen by parents, and points to an interesting statistic, according to which more than half of parents chose to deposit an additional amount of money in savings plans (which is less than the child allowance paid to the bank account), and that many parents avoid choosing an investment track for their children born after their first child. This means that these children do not have an additional deposit.
Savings for Every Child // Photo: GettyImages,
A savings plan for every child was launched in 2017 to ensure savings for all Israeli children to use when they reach the age of 18 or 21. As part of the program, the state deposits NIS 52 a month in addition to the child allowance paid into the parents' bank account, in bank savings plans or provident fund, at the parents' choice. Parents can deposit an additional sum of NIS 52 from the child allowance to which they are entitled, thus doubling the amount of the monthly deposit into savings. The additional deposit is deducted, as stated, from the child allowance paid to the parents for the child. Parents can choose two options: deposit in a bank or provident fund.
Altshuler Leads
The data collected show that in 2022, a total of NIS 3.048 billion was deposited into savings plans, and in total since the program was launched in 2017, almost NIS 18 billion has been deposited. Of these, 73 per cent were deposited by the National Insurance Institute, and 27 per cent were deposited by parents as part of the additional deposit.
Most parents chose to deposit their savings into provident funds in 2022, 78% of them, to be precise. The rest chose banks. The leading funds in parental choice are Altshuler Shaham (35%) and Harel (23.3%), while the leading banks in parental choice are Hapoalim (40%), Leumi (20%), and Mercantile (10.9%).
The fluctuations in the capital market had an impact and caused provident funds to lose NIS 3 million in savings opened in 2022. The banks earned almost NIS 190,1. However, the total profit from bank and provident fund deposits since the program was launched amounted to NIS 138.<> billion.
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