Important notice from the National Insurance Institute: How to withdraw funds from the "Savings for Every Child" program
The National Insurance Institute reminds the public that withdrawing funds from the "Savings for Every Child" program does not require using paid services: the application can be submitted directly to the managing body independently and at no extra cost.
The National Insurance Institute published a notice to the public regarding the withdrawal of funds from the "Savings for Every Child" program, following the emergence of private entities offering to assist in the process for a fee.
The National Insurance Institute warned against paying commissions for services that can be performed independently. "Before you pay someone to withdraw the 'Savings for Every Child' money for you and they take excessive commissions from you... stop," the post stated. It was further noted that the process can be carried out "in just a few clicks on the National Insurance Institute website."
However, the website clarifies that the application for withdrawing funds must be submitted directly to the provident fund or bank managing the savings. The National Insurance Institute itself does not handle the withdrawal process.
When can the money be withdrawn?
According to the National Insurance Institute, savings funds can be withdrawn when the child reaches the age of 18, except in exceptional cases. To withdraw, one must fill out an application and submit it to the managing provident fund or bank.
For certain provident funds, the application can be submitted online, including: Altshuler Shaham, Phoenix Excellence, Harel, Meitav, Menora Mivtachim, Infinity, Bank Leumi, Mor, Analyst, and Migdal. For Bank Yahav, Bank Hapoalim, and Mercantile Discount Bank, the application can be sent via email using the contact details provided on the National Insurance Institute website.
Monthly deposits
The "Savings for Every Child" program is available for every child eligible for a child allowance. Starting from 01.01.2026, the National Insurance Institute deposits 58 NIS per month for each child. Parents can choose to add an additional 58 NIS from the child allowance, bringing the total monthly deposit to 116 NIS.
Payments at age 18 and 21
Grant rules vary based on the date of birth:
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A child born until 31.12.2016 will receive a grant of 582 NIS at age 18. Funds are available for withdrawal with parental approval.
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A child born from 01.01.2017 onwards does not receive the grant at 18. Instead, they receive 291 NIS at age 3 and another 291 NIS at the age of Bar/Bat Mitzvah.
At age 21, an additional grant of 582 NIS is deposited, provided no funds were previously withdrawn. From age 21, the child can withdraw funds at any time without parental approval.
Exceptional cases for early withdrawal
The National Insurance Institute outlines cases where early withdrawal is possible. In the event of a life-threatening medical condition, parents may request to withdraw funds to finance medical needs, subject to approval by an institute doctor. Upon approval, a 582 NIS grant is deposited into the savings, replacing the grant otherwise paid at age 18.
Special rules also apply in the case of a child's death. If a child allowance was paid, parents are entitled to continue receiving it for 3 months after the month of death, during which time savings deposits continue. Afterward, parents may withdraw the funds.
Important information before withdrawing
Capital gains tax will be deducted from the withdrawal amount. However, if the funds are managed in an investment provident fund and the child chooses to keep them until retirement, they can receive the savings as a pension without paying capital gains tax.
For inquiries regarding accumulated amounts or withdrawal details, please contact the provident fund or bank managing the savings.
