Banking in Israel as an American: FATCA forms, checks and the apps everyone uses

Short answer: yes, Israeli banks open accounts for US citizens all the time. You'll fill in a W-9, hand over your Social Security number and then discover that Israelis still write checks for rent while paying each other back on their phones.

The short version

• Israel has a Model 1 FATCA agreement with the US. The Treasury lists it as treated as in effect from June 30, 2014, and in force since August 29, 2016 [1]. Your Israeli bank reports your account to the Israel Tax Authority, which passes it to the IRS.
• Expect to sign a W-9 and give your SSN when you open an account. New immigrants also need their Teudat Oleh or Teudat Zehut [3].
• Checks still matter in Israel, especially for rent. Bounce ten in 12 months and your account gets restricted for a year [4].
• Bit and PayBox are the everyday apps for paying friends, splitting bills and chipping in for a gift.
• Uncle Sam still wants an FBAR once your foreign accounts top USD 10,000 combined at any point in the year, and possibly Form 8938 [2].

USD conversions in this guide use the European Central Bank reference rates of October 29, 2026, crossed to ILS 3.116 per US dollar [6].

FATCA in Israel: what the bank asks and why

FATCA is the US law that makes foreign banks report accounts held by Americans. Israel signed on to the Model 1 version, which means banks report to the Israel Tax Authority rather than straight to the IRS, and the two tax authorities exchange the data [1].

In practice, you'll see it at the account-opening desk. US citizens are asked for their Social Security number and a W-9, and every account holder signs tax and anti-money-laundering declarations [3]. A few heads-ups:

• Answer honestly. A US birthplace in your Israeli ID or passport will flag the account anyway. A mismatch can mean a frozen account while the bank sorts it out.
• Dual citizens count. An Israeli passport doesn't take you off the list. If you were born in the States, you're a US person until you formally renounce.
• Joint accounts. If your spouse is Israeli and not American, the account is still reportable because your name is on it. Some couples keep a separate account for the non-American spouse; a US expat tax preparer can check whether that makes sense for you.
• No SSN? Some Americans born abroad never got one. Apply through the US embassy before you go to the bank, because the bank will keep asking.

Opening an account: documents and first steps

Israel's big banks include Bank Hapoalim, Bank Leumi, Israel Discount Bank, Mizrahi-Tefahot and First International Bank of Israel [3]. Most Americans in Tel Aviv pick a branch near home or work, because in the first months you'll be in and out more than you'd like. Each branch runs fairly independently, so a checkbook or card sent to one branch can't always be picked up at another [3].

Plan for a long sit-down. Nefesh B'Nefesh advises getting to the branch at least an hour before closing, and every account holder, including a spouse, has to come in person with their own documents [3]. Set up a phone code while you're there; bankers won't discuss your account by phone without one.

New immigrants and the sal klita

If you made aliyah, open the account fast. The Ministry of Aliyah and Integration pays the absorption basket (sal klita) into an Israeli bank account, and it can't pay into an inactive one [3]. You'll get a form at the airport for your future bank account; the bank stamps it and you bring it to the ministry. Ask the bank whether it has a new-immigrant package with lower fees for the first years. Offers change, so compare in writing rather than relying on a friend's deal from 2019.

If you're here on a work visa rather than as a new immigrant, bring your visa and a letter from your employer. The process is the same in spirit, though some branches take longer to approve non-residents.

Checks culture: yes, really

Back home, most of us haven't written a check since the last time we paid a contractor. In Israel, checks are alive and well. Landlords commonly ask for a stack of post-dated rent checks or a guarantee check, and some schools and service providers still take them. Your checkbook usually takes a few days to arrive at the branch [3].

The rules are strict, so learn them early:

1. Bounced checks have teeth. If ten or more of your checks are returned for insufficient funds within 12 months, the account is restricted for one year. The bank must warn you after five [4].
2. A restriction hurts. You can't write checks on that account or open a new checking account at any bank, and banks may cancel credit cards and refuse loans [4].
3. Fill in the payee. Under the Reducing the Use of Cash Law, banks won't pay a check with no payee named, or a check endorsed more than once if it's over ILS 10,000 (about USD 3,200) [5].
4. Deposit by phone. Electronic check clearing lets you photograph and deposit checks in your bank's app [5].

Banks must also offer a debit card to checking account holders, and debit transactions can't carry fees [5].

Bit, PayBox and digital banks

Ask an Israeli friend how to pay them back and the answer is "send me a Bit." Bit, from Bank Hapoalim, and PayBox, from Discount Bank, work much like Venmo or Zelle: you link your Israeli bank account or card and send money to a phone number. They're used for everything from splitting dinner to class gifts for a kid's teacher. Both need an Israeli phone number and, for most features, an Israeli account. Fee rules for payment apps have been changing, so check the app's current terms.

App-first banking has arrived too. Bank Leumi runs Pepper, a digital-only brand, and One Zero is a newer digital bank. They ask the same FATCA questions as any Israeli bank. Read each one's eligibility rules before applying, especially if you don't yet have a Teudat Zehut.

Moving money between the US and Israel

Most Americans keep at least one US account for Social Security, a 401(k), US credit cards and anything billed in dollars. Our guide to keeping a US bank account explains the US-address catch.

Nefesh B'Nefesh suggests depositing small amounts in shekels at first, because depositing dollars and converting at the branch can be pricey [3]. On a big transfer, compare the rate offered against the mid-market rate. A 2% markup on ILS 500,000 for an apartment is ILS 10,000 (about USD 3,200) gone.

A heads-up on investing: Israeli mutual funds are usually PFICs under US rules, and pension and keren hishtalmut accounts have their own US tax wrinkles. Read our guides before you sign up for anything beyond a checking account.

What you still owe the IRS

Your Israeli bank already reports you through the Israel Tax Authority, but your own filings don't go away:

Interest on Israeli accounts is taxable on your US return. If you have joint accounts with an Israeli spouse or you're catching up on years you missed, a US expat tax preparer can check your situation.

Comparing notes on which branches are easiest for Americans is one of the most common threads in our community group for Americans in Israel.

Your first-month banking checklist

1. Before you fly, make sure you know your SSN and have your US bank's online access working abroad.
2. Week one: open an Israeli checking account with your passport, ID or Teudat Oleh, and sign the W-9.
3. New immigrants: give the account details to the Ministry of Aliyah and Integration for the sal klita.
4. Order checks and learn the payee and bounced-check rules.
5. Download Bit or PayBox once your account and Israeli phone number are live.
6. Pick how dollars will move, and keep a no-foreign-fee US card for the transition.
7. Start your FBAR list with each account's highest balance in the year.

Sources

1. US Treasury: Foreign Account Tax Compliance Act (IGA list)
2. IRS: Comparison of Form 8938 and FBAR requirements
3. Nefesh B'Nefesh: Opening a bank account in Israel
4. Bank of Israel: Restriction of accounts and customers
5. Bank of Israel: Advanced means of payment and the Reducing the Use of Cash Law
6. European Central Bank: Euro foreign exchange reference rates

Keep reading

• Israeli taxes for Americans: how they fit with your US return
• Israeli pensions and keren hishtalmut: US tax issues
• FBAR: reporting your foreign bank accounts
• Sending money between the US and abroad