Child Savings Plan Israel - Guide for Parents
How much? National Insurance deposits 57 NIS/month per child (until age 18).
Since when? From birth, automatically.
Expected at age 18: ~20,000-30,000 NIS (depending on plan and returns).
How It Works
National Insurance deposits 57 NIS monthly from child allowance into savings. 50 NIS goes to the plan parents choose, 7 NIS to a government-chosen plan.
Investment Plans
| Plan | Risk | Expected Return | Best For |
|---|---|---|---|
| Stocks | High | High | Young children (time to grow) |
| Mixed | Medium | Medium | Any age |
| Bonds | Low | Low | Older children |
How to Choose
- Log into National Insurance website
- Identify with ID number
- Choose managing body (bank / insurance company)
- Choose investment plan
- If you don't choose - money sits in a bank account with minimal interest!
Tip: For young children (0-10) - stocks plan is recommended. 8-18 years until withdrawal, and historically the highest returns.
Reminder for Parents
Add a reminder in ALMO AI: "Check child savings plan." Make sure you've chosen a plan and aren't leaving money earning near-zero interest!
Download ALMO AI for Free
Smart calendar with voice recognition, photo scanning and shared calendars
Frequently Asked Questions
+ What is an Israeli Child Savings Plan, and how does it work?
The Israeli Child Savings Plan is a government initiative where the National Insurance Institute deposits 57 NIS per month for each child. Parents choose an investment track – either a low-risk bank savings account or a higher-risk investment fund. ALMO AI can help you analyze potential returns based on different investment strategies, ensuring you make an informed decision.
+ How do I choose the best Child Savings Plan in Israel for my child?
Choosing the right plan depends on your risk tolerance and investment goals. Bank savings accounts offer more security, while investment funds have the potential for higher returns, but also carry more risk. Let ALMO AI analyze your family's financial situation and risk profile to recommend the most suitable plan for your child's future.
+ When can I withdraw money from my Child Savings Plan, and what are the tax implications?
You can withdraw the funds when your child turns 18, with the option to extend it to age 21. Withdrawals are subject to capital gains tax. ALMO AI can help you project the potential tax implications of early withdrawals and guide you on the optimal timing for accessing the funds.
+ What happens to the Child Savings Plan if my child moves abroad?
The Child Savings Plan remains active even if your child moves abroad. The funds can still be withdrawn at the appropriate time, subject to applicable tax laws. ALMO AI can help you navigate the international tax implications and ensure compliance with regulations.
+ Is the Child Savings Plan a good investment for my child's future, and what are the alternatives?
The Child Savings Plan is generally a good starting point for saving for your child's future, offering a government-backed savings mechanism. However, it's essential to consider other investment options alongside it. ALMO AI can provide a comprehensive financial plan that incorporates the Child Savings Plan with other investments to maximize your child's financial security.
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