Rights8/12/2026

“Savings for Every Child”: About 100,000 Accounts Transferred to Investment Funds

Following a change to the program’s rules in January 2025, parents were given the option of transferring children’s savings from banks to investment funds. According to National Insurance Institute data, more than 98,000 parents used this option.

Key facts

•Rule change: January 2025
•Transferred from banks: more than 98,000 accounts
•Active accounts: more than 3.6 million
•Monthly government deposit: NIS 57
•Investment funds: 84% of accounts at the end of 2025
•Additional deposit for waiting until age 21: NIS 568

How the Program Works

The government’s “Savings for Every Child” program has been operating since 2017. The state deposits NIS 57 each month into the account of every child under age 18; the count of active accounts also includes accounts belonging to adult participants who have not yet reached age 21. The savings can be withdrawn from age 18, and those who wait until age 21 receive an additional deposit of NIS 568.

What Changed in 2025

Previously, a family that chose a bank account for its first child would automatically receive the same option for its second child, and it was not possible to switch between the bank track and an investment fund. Since January 2025, such transfers have been permitted, and an investment fund has become the default option regardless of the parents’ choice for their first child. Following the change, more than 98,000 parents transferred savings from banks to investment funds.

Where the Savings Are Held

The program has more than 3.6 million active accounts. At the end of 2025, 84% were held in investment funds and 16% in banks. Among accounts opened in 2025, the share held in investment funds was about 95%; overall, about 60% of parents chose the savings track themselves.

Additional Deposits by Parents

Parents can double the monthly deposit by transferring an additional NIS 57 from the child allowance to which they are entitled. In 2025, about 63% of parents did so—for about 2.18 million children. According to a study previously published by the National Insurance Institute, the rate was 39% among Haredi families and 23% among Arab families.

What this means for you

Parents can now change the bank savings arrangement they previously selected and transfer their child’s account to an investment fund. They are also entitled to add an additional NIS 57 each month from the child allowance to the NIS 57 deposited by the state. The choice of savings method and the additional deposit may affect the amount available to the child upon reaching adulthood.

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