The banking market in Israel reached a boiling point together with the announcement today (Wednesday) of Discount Bank that the mandatory interest rate on the current account will be canceled up to the amount of NIS 2,000. This and a number of other measures taken are intended to increase competition in the banking system.
Beyond the dramatic announcement of the cancellation of the interest rate and the opening of the advertising campaign with the participation of the moderator and actress Rotem Sela, Discount Bank has taken a number of additional steps in order to stimulate competition in the field and bring in customers to join.
Reduction of interest on current account balances over NIS 2,000 for credit line holders. A reduction of more than 50% in the quarterly credit allocation fee to NIS 10 – the lowest amount among the five largest banks.
A package of advanced tools that will help customers manage their finances wisely and reduce the use of overdraft: an SMS message that updates customers on entering the minus at no cost. Personal insights in the app for prudent financial management and avoiding going into a minus. An open banking-based connection to the service of Fintech, which helps to avoid paying unnecessary interest on the overdraft.
Uri Levin, CEO of the Discount Group, stated that “the move to reduce customers’ costs for using overdraft, led by the cancellation of the interest rate on the minus to the amount of NIS 2,000, is the first in a series of planned steps that focus on addressing our customers.” “Discount has set itself the goal of being the best bank for its customers and creating real competition in the banking system, and the steps we are presenting today are another significant milestone in this way.”