Savings for Every Child
About the Savings for Every Child Plan (in addition to the child allowance)
In January 2017, the National Insurance’s Savings Plan for Every Child Law came into effect. According to the plan, the National Insurance Institute deposits NIS 50 per month for each child in the State of Israel eligible for a child allowance, in addition to the allowance. Parent may also increase the savings by another NIS 50* per month out of the child allowance paid by the National Insurance Institute, bringing the monthly savings to NIS 100 per child. The plans are managed in long-term savings investment provident funds or in banks. In provident funds, various investment tracks are offered.
Our personal area will allow you to follow the savings accounts on a regular basis.
Who is eligible for the Savings for Every Child Plan?
The funds are deposited by the National Insurance Institute for each child in respect of whom a child allowance is paid from the date of his/her birth until he/she reaches the age of 18. The funds are deposited to an account bearing the child’s name in a provident fund or bank; the National Insurance has published a list of funds and banks to choose from.
On turning 18, children born up to December 31, 2016 will be eligible for a NIS 500 grant in addition to the current deposits. Children born beginning on January 1, 2017 will receive a NIS 500 grant in two installments: NIS 250 when the child reaches age 3 and NIS 250 when the child turns 13 (boys) or 12 (girls). If the child continues to save the funds in the account after turning 18, they will be eligible for another grant of NIS 500 at the age of 21, subject to leaving all of the funds in the account.
How do you choose where to manage the savings account?
Altshuler Shaham and other management companies won a tender issued by the State to manage the savings account funds deposited under the Savings for Every Child Plan. You may enter or update your choice regarding which company to manage your child's savings by contacting the National Insurance Institute.
If you do not select a managing entity, your savings funds will be deposited with a management entity (provident fund or bank) of the National Insurance Institute’s choice, from among participating provident funds and banks. Please note, that under the current rules, if a bank is chosen, you will not be able to transfer the funds to a provident fund in the future.
To ensure that the savings funds deposited for your child are managed responsibly and optimally, in line with your preferences and personal needs, it is recommended that you select the most appropriate entity to manage your savings. Altshuler Shaham Child Savings Provident Fund offers you four investment tracks to choose from, according to the level of risk that suits you most.
When and how can the money be withdrawn?
When your child turns 18, he/she may withdraw the funds, subject to your approval. To withdraw the funds, fill out a withdrawal request form and send it to the managing entity. In addition, as mentioned above, children born up to December 31, 2016 will be eligible for a NIS 500 grant in addition to current deposits when they turn eighteen. In addition, children born beginning on January 1, 2017 will receive a NIS 500 grant in two installments: NIS 250 when the child reaches age 3 and NIS 250 when the child turns 13 (boys) or 12 (girls). If your child continues to save the funds in the account after turning 18, they will be eligible for another grant of NIS 500 at the age of 21, subject to leaving all of the funds in the account.
Why choose Altshuler Shaham to manage your children’s savings?
Established in 1990 by Gilad Altshuler and Kalman Shaham, Altshuler Shaham is one of Israel’s leading investment houses. The investment house manages investment portfolios, provident funds, study funds, pension funds, mutual funds, insurance and savings, with about NIS 184 billion under management, for hundreds of thousands of customers. Altshuler Shaham's seasoned investment management team follows an investment philosophy that is unique in Israel - one based on long-term perspective, wide geographical distribution and asset portfolio diversification, with a focus on stable, highly-tradable, high cash-flow companies. Over the years, the company has proven its ability to anticipate trends in the bond and stock market and to choose the right composition of securities for our clients' portfolios and provident funds.**
For more information regarding the plan, visit the Plan’s website on the Ministry of Finance’s website at hly.gov.il
