Last Updated on December 20, 2023
Disclaimer: Nothing in this article should be considered financial advice. We always recommend conducting independent research before making any financial decisions. We do not work for or have any affiliation with any of the services mentioned herein.
Our most popular article by far “Ranking the best options for exchanging currency” has helped thousands of Olim figure out the best way for them to transfer money to Israel. This article will look at the other side of the equation and explain some of the best options for transferring money out of Israel. While the choices used to be much more limited, this is starting to change and there are good reasons to believe that they will continue broaden further in the near future.
Whether it is paying off student loans, credit card balances outside of Israel, investing in non-Israeli assets, or just paying US taxes – there are many good reasons to set up cost effective methods for getting money out. This article will help you optimize the costs based on your individual circumstances. For step-by-step guidance on using these platforms and building a currency transfer plan, see our complete, low-cost course “Mastering Money Transfers to Israel“
Table of Contents
Price comparison charts
To get started let’s break down the price differences. Here is a comparison between making a smaller and larger transfer.
Scenario 1: Making a ₪20,000 transfer
Account | Interactive Brokers | Wise | Clearshift | OlehPay | Other local transfer services |
Fee | $2 minimum commission | 1.86 ILS + 0.62% | Minimum 180 NIS fee | 2% Fee | n/a 40K Minimum |
Total Monthly Cost | Approx. ₪7.30 | ₪125.08 | ₪180 | ₪400 | n/a |
Scenario 2: Making a ₪200,000 transfer
Account | Interactive Brokers | Adesco | IsraTransfer | Clearshift | Wise | OlehPay |
Fee | $2 minimum commission | 0.015 ILS * converted amount | 0.5% fee | 0.5% fee | 1.86 ILS + 0.62% | 0.7% Fee |
Total Monthly Cost | Approx. ₪7.30 | Approx. ₪810 | ₪1000 | ₪1000 | ₪1234.21 | ₪1400 |
Wire fees
If you are using one of the local transfer services (such as Adesco or IsraTransfer), you may need to include wire fees in your calculation. A typical fee for an incoming wire transfer is $15 but this can vary considerably from bank to bank. Verify with the transfer service you are using whether they will be sending the money via domestic wire, international wire, or ACH. Once you have that information, check your banks specific fee listings and then add that fee to the charts above for a more accurate total fee comparison.
If you are using Interactive Brokers, Wise, Clearshift, or OlehPay you would not need to consider additional wire fees. They generally support US ACH transfers which are almost always free to receive in any US bank.
Understanding the options
I will now try and highlight the common scenarios for which each option may be best. For a detailed pros and cons list, be sure to read our full currency exchange article and for a much deeper dive in to each option, check out our complete course.
Wise
Wise is one of the simplest options and very cost effective for making small transfers. Setting up an account is generally easy with a relatively short verification process. There are no monthly subscription fees so you can use your Wise account as much or as little as you need.
Interactive Brokers
Interactive Brokers is almost always the cheapest option, but using the platform for currency transfer is only available if you use your account primarily to invest. For those looking for a US investment platform that you can easily transfer money to from an Israeli bank, IBKR is often the best option. As IBKR connects to bank accounts all over the world, you can build an extremely low-cost bridge between you accounts in Israel and elsewhere. To learn more see our full guide: “Interactive Brokers (IBKR)- All your questions answered“
Local Transfer Services
Local transfer services (like Adesco, IsraTransfer, & Clearshift) are one of the best options for transferring large amounts of money out of Israel. There are many different local transfer services so be sure to get recommendations from trusted friends and family members. Key things to look out for are quality of service and transparent fee structure.
Bank to Bank
Having your Israeli bank convert the funds and setting up an international wire transfer to your foreign account is another option to consider when speed is the top priority. Take note that this is generally the most expensive option and understanding all the fees your bank will be charging can be complicated. Common fees include a currency exchange fee, the exchange rate spread (often the largest fee), and international wire fees.
The new global connection
The Bank of Israel has taken some big steps recently to open up the Israeli banking system. Companies with banking licenses in the US, EU or UK are now able to get access to the Israeli banking system without the need for a seperate Israeli banking license. This has likely paved the way for global companies such as Wise to start offering transfers out of Israel and the hope is that others like Revolut will soon follow continuing to increase competition. Read more about this, here.
Are US credit cards now a no-brainer?
One question we get asked all the time is whether or not it makes sense for someone earning an Israeli salary to be using US credit cards. If you are able to earn 1.5%-5% on every purchase and transferring money to a US account only costs 0-1%… why not make the most of US points & cash-back?
For someone who is eligible for a US credit card there is certainly logic in this approach as US cards offer both better rewards and better consumer protection. That being said, some important points to consider before proceeding:
- Always think twice before adding complexity to your financial plan. This approach can make cash-flow management and general budgeting more difficult.
- Credit card rewards are designed to encourage you to spend. It would not be beneficial to focus on credit card rewards in if it may encourage excess spending. Carrying a credit card balance beyond the due date is destructive to your financial health.
- Fluctuations in exchange rates can reduce or even eliminate any benefits received. Someone transferring once a year has far more exposure to this risk then someone transferring each month to pay off the previous months balance.
- You will still likely need an Israeli credit card for some purchases. Maintaining an Israeli credit card is important for improving your Israel credit score.
In conclusion, there are great options when it comes to transferring money out of Israel. Maintaining access to your money and having the ability to transfer it to and from Israel should bring you a lot of peace of mind. If you are not sure where you should be keeping you savings, be sure to read our full guide “Should you keep your money in or out of Israel?“
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I help Olim make more confident decisions by sorting through the complexity around personal finance in Israel and delivering a well organized path forward.
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Hi Aaron, I’ve got a quick question: If I already have an account on IBKR, can I utilize it for storing money and facilitating money transfers? For instance, let’s consider a scenario where I own a property in my home country (definitely not Israel) listed on Airbnb – would it be feasible to receive payments through IBKR and subsequently transfer those funds to Israel?
Thank you!
IBKR can serve as a bridge between accounts in different countries. But as mentioned in this article, your primary use for your IBKR account must be investing, and not to facilitate money transfers.
In addition, it won’t serve as a payment processor for receiving payments from 3rd parties, but you can transfer money regularly that you receive in your bank account to IBKR.
What is the best way to transfer cash from a US bank or Trust to an Israeli bank account without incurring Wire TRansfer Fees plus Exchange Services Cost?
Hi Anne, there are always likely going to be some costs involved.
To avoid wire fees, use one of the services that support ACH transfers. See our full comparison for transferring money to Israel, here: https://bluewhitefinance.com/exchanging-currency-israel/