Is the public pressure on the banks working? Discount Bank He announced this evening (Monday) that he is raising the interest rate on theDeposits for a year or more. This after data on the interest rates offered by the banks found that Discount offered interest rates among the lowest in the banking system and was among the banks that disclosed to the public the lowest increase in the Bank of Israel’s interest rate when it comes to deposits.
According to the bank’s announcement, the interest on a deposit for a year or more, at a fixed rate, will be 3% per year, which will place Discount with the highest interest rate in the banking system. At the same time, the bank increases the interest rate on deposits for one year or more at a variable interest rate, which will henceforth be the same as the Bank of Israel interest rate: 2% (prime minus 1.5%), and will be updated in accordance with the Bank of Israel’s future interest rate changes.
These interest rates will be given to customers who open the deposit through the digital channels (the bank’s website and app), with the minimum deposit amounting to NIS 250 and the maximum amount being NIS 1 million. Customers who open a deposit at the branch will be able to choose between a variable interest rate of prime minus 2% (the current prime is 3.5%, so the interest rate will be 1.5%) or a fixed rate of 2.5%. This interest also places Discount at the top of the system, but as mentioned less than for those who open the deposit using digital means.
Let’s recall that this is not the first time that Discount has channeled public criticism into an economic move. In January of this year, the bank, headed by Uri Levin, announced that it would not charge interest from customers whose current account deficit is up to NIS 2,000. In addition, it announced at the time discount Because he reduces the interest even on a minus higher than this amount.
Uri Levin, CEO of the Discount Group: “We are attentive to the public’s expectations of us and are determined to be the best bank for its customers. We are committed to offering them diverse tools for prudent financial management in the future as well.”
We will recall that yesterday the Chairman of the Finance Committee, MK Alex Kushnir, addressed all the CEOs of the banks and the supervisor of the banks with the demand to adjust the interest rate on savings and deposits, in view of the Bank of Israel’s interest rate increase. The interest rate of the Bank of Israel, they transferred only a small part of that increase by the central bank (1.9% in four months), to deposits. Kushnir wants to hold a discussion on the issue in the finance committee at the beginning of September.