Guide: How can the reform help you?
|
|
The bank fees reform, which went into effect on July 1, 2008, enables customers to obtain all the relevant information regarding the fees charged by the banks, to compare them, and to decide which bank should handle one's account.
|
|
In the wake of the reform, customers will know the cost of the bank service they wish to obtain, will be able to compare the prices offered by the banks or other bodies providing the same service and between the prices of alternative services, and decide how to act. Thus, for example, customers can request better conditions from the bank that handles their account, or if necessary, even transfer their account to another bank.
|
|
The reform will help customers to become wiser consumers of banking services. Informed consumption in the area of banking, as in other areas, will help to promote competition and improve the conditions offered to customers.
|
|
This guide provides information on the following subjects:
|
|
|
Ÿ
|
What is particularly important to know and to compare?
|
|
|
Ÿ
|
How can I examine the activity in my account?
|
|
|
Ÿ
|
How can customers unable to perform their current-account activities using the direct channels avoid paying fees?
|
|
|
Ÿ
|
Recommended examinations that you should carry out on your current account
|
|
|
Ÿ
|
Recommended examinations that you should carry out regarding your credit card
|
|
|
Ÿ
|
Recommended examinations that you should carry out when you take a mortgage loan
|
|
|
Ÿ
|
The recommended order of actions in order to achieve the maximum benefit from the reform
|
| |
|
What is particularly important to know and to compare?
|
Every customer should compare prices of the services the banks charge him for his current account (especially regular operations in the account), the cost of holding a credit card, the cost of credit (particularly interest) etc.
The reform will lead to three major changes that will make it easier to compare banks:
|
| |
Ÿ |
The number of fees for consumer services was reduced by about two-thirds as a result of unifying and canceling fees.
|
| |
Ÿ |
Henceforth, identical services will be given the same name in all the banks.
|
| |
Ÿ |
The standard fees (current account, mortgages and credit cards) will be available in a format that makes it easier for customers to check and compare them.
|
|
How can I examine the activity in my account?
|
|
Customers are able to examine the nature of their banking operations (and especially their current-account transactions) by checking printouts of their account several months retroactively. Customers will also be able to study printouts for previous periods (which are also sent to them by regular mail) on the Internet and by means of ATMs that the bank will place at their disposal.
|
|
How can customers unable to perform their current-account activities using the direct channels avoid paying fees?
|
|
According to the reform, consumers who do not hold means to perform their current-account activities using direct channels, elderly people and disable customers who due to their disability cannot handle one or more direct channels are able to execute 4 monthly over-the-counter transaction at the price of direct channel transactions. Make sure to demand such a discount if you are entitled to it and return your means of performing direct activities if they are unused.
|
|
Recommended examinations that you should carry out on your current account
|
|
Pay particular attention to the following current-account services:
|
| |
Ÿ |
Current operations - both in the direct channels and the current operations carried out by a teller.
|
| |
Ÿ |
Cost of credit facilities - interest or a fee for granting credit facilities.
|
| |
Ÿ |
Cost of credit card - credit-card fee.
|
|
You can find comparisons of fees in these areas, as well as calculators for comparing costs or forms for carrying out an independent comparison, on the
bank fees reform page (in Hebrew).
|
|
Recommended examinations that you should carry out regarding your credit card
|
|
Pay particular attention to the following services connected to your credit card:
|
| |
Ÿ |
Credit-card fee - In the wake of the reform, a single monthly fee is now paid for credit cards - the credit-card fee. You should compare the fee for the credit card offered by the bank with the fee offered by the credit-card companies for the cards they issue directly. Customers are not obliged to hold credit cards issued by their bank, but can directly contact any credit-card company they choose. Check whether any discounts are given on these fees and based on what criteria..
|
| |
Ÿ |
Deferred-payment fee - for customers who regularly conduct transactions by means of installments.
|
|
Recommended examinations that you should carry out when you take a mortgage loan
|
|
When you take out a mortgage loan, pay particular attention to the rate of interest. Make sure to compare the rates of interest for the loan offered by different banks.
|
|
The recommended order of actions in order to achieve the maximum benefit from the reform
|
| 1. |
What are the most frequent actions you undertake? Examine this on the printouts you receive from the bank, and identify the types of transactions you undertake and their prices. The comparison form is useful in this respect.
Click here To download the form (in Hebrew).
|
| 2. |
Negotiate with the bank and demand better conditions.
|
| 3. |
Examine the prices of these operations in other banks, and assess whether it is worthwhile transferring your account to a bank that offers better conditions. As part of the comparison, you should also take into account the rate of interest the bank charges for credit facilities on your current account.
|
| 4. |
You can obtain an information sheet from the bank that summarizes all your assets in and liabilities to the bank. This sheet is given free of charge twice a year to a customer who is considering transferring his account to another bank.
|
