Two weeks before the Bank of Israel raises another interest rate, the central bank publishes the interest data that banks charge on deposits and loans. The data reveals that the average interest rate on loans in the prime route is already close to 8%, while on the one hand the Bank of Jerusalem continues to offer the highest interest rate which is already approaching 15%, while the digital bank One Zero offers the lowest interest rate – 5.4%. However, this is an increase of 0.4% compared to the data in October.
● Pessimism washed over the economists: the bells of the recession are ringing loudly Surgery
● The price of lowering inflation: the Harvard professor who warns that the pain is still ahead
● Housing prices on the way to a landslide? The predictions of the top executives of the investment world
After One Zero is Discount with an average interest rate of 6.53% in November, an increase of 0.22% compared to the previous month. As for the other major banks, Mizrahi Tefahot offers the highest interest rate among them, which is 8.85%, an increase of 0.2%, followed by Leumi with an interest rate on loans of 8.26%, the same as the one recorded in October, followed by Hapoalim, which increased the interest rate by 0.05% to 8.03%.
As for the final repayment period of the loans, here an extension of the average period was recorded from 5.3 years to 5.5, an extension that shows that the public wishes to spread the loans over longer periods of time.
Interest rates on short-term deposits are rising
From here we will move on to deposits, for which the banks have been criticized in recent months for not disclosing to the public the full interest rate increase by the Bank of Israel, which has jumped from 0.1% to 3.25% since April, and as mentioned is expected to rise again at the beginning of next month, in order to continue attempts to stop inflation the ascendant
The good news is that the banks are continuing the trend of raising interest rates, especially on short-term deposits. The average interest rate for deposits of up to three months at a fixed rate, where most of the public’s interest-bearing savings are located, rose to 1.39% in November compared to only 1.05% in October. The Bank of Jerusalem continues to offer the most attractive interest rate and it stands at 2.59%, an increase of 0.17% compared to October. Mercantile, the international and the workers are placed after him, with an interest rate of around 2%.
The less good news is that there are banks that are significantly behind them and offer very low interest rates. These are Leumi (1.15%) and Mizrahi Tefahot (1.03%), with Bank Yahav closing the list with a very low interest rate of 0.7%.
It should be noted that the public seems to understand that the interest on bank deposits has increased and is increasing the deposits for interest-bearing deposits, but does not always check the additional products that can offer a similar or even higher interest than the banks. Total bank deposits in November amounted to about NIS 55 billion, compared to about NIS 50 billion in October and September.
A clear trend that can be pointed out is that the public understands that the Bank of Israel’s interest rate will continue to climb, probably in the next two beats at least, and the total deposits for fixed interest deposits increased in November to 30.3 billion shekels compared to 27.7 billion in October, while on the other hand deposits for variable interest deposits decreased from 25.5 billion NIS in October to NIS 24.7 billion in November.
The fixed interest rate for a period of 3 months to a year offered by banks on deposits
: Select a category show more
search: location the bank November The addition from October 1 discount 3.47% 0.15% 2 Jerusalem 3.46% 0.27% 3 international 3.32% 0.43% 4 national 3.31% 0.29% 5 the workers 3.27% 0.34% 6 Mercantile 3.01% 0.13% 7 Yahav 2.97% 0.30% 8 foundation 2.86% 0.35% 9 Mizrahi Bank 2.04% 0.06%
The banks internalize the audit of the governor and the bank supervisor
When the duration of the deposit is extended a little, for a period of up to a year (still with a fixed interest rate), it is evident that the banks have definitely internalized the words of the governor of the Bank of Israel, Prof. Amir Yaron, and the supervisor of the banks, Yair Avidan, who expressed displeasure that they are not in a hurry to roll out the The interest also for deposits.
The average interest rate in the system was 3.24% in the past month and is already very similar to the average interest rate for a period of one to two years (3.26%). Here Discount and the Bank of Jerusalem are tied at the top with offers of 3.47% and 3.46% respectively, with International, Leumi and Hapoalim a little behind them with an interest rate hovering around 3.3%. Here too Mizrahi Tefahot is at the bottom of the list with an average interest rate of only about 2%.
To Mizrahi Tefahot’s credit, we note that for longer-term deposits, of one to two years, it is the only bank that offers a fixed interest rate of more than 4%, and by a considerable margin from its competitors, with the average interest rate for this period standing at 3.26%. Hapoalim is the one offering the highest interest rate for deposits of two years or more (3.7%) followed by Bank Yahav.
As for deposits with an interest rate that is not fixed but varies according to the prime rate, here One Zero continues to offer attractive interest rates compared to its competitors, but now it shares the top with the Bank of Jerusalem, with the two offering an interest rate of 2.83%. While One Zero raised this interest rate between October and November by about 0.2%, the Bank of Jerusalem raised it by 0.27%.
The variable interest rate (prime) that banks offer on deposits
: Select a category show more
search: location the bank November The addition from October 1 One Zero 2.83% 0.19% 2 Jerusalem 2.83% 0.27% 3 Mizrahi Bank 2.01% 0.19% 4 Mercantile 1.99% 0.23% 5 the international 1.82% 0.27% 6 discount 1.74% 0.27% 7 foundation 1.61% 0.26% 8 Yahav 1.37% 0.18% 9 national 1.35% 0.18% 10 the workers 1.14% 0.10%
In the field of variable interest rates, Bank Hapoalim is the one that offers the lowest variable interest rate, which stands at only 1.14%, and is the only position below the average in the banking system, which was set in November at 1.34%, an increase compared to 1.2% in October.