Savings plan offers competitive interest rate with estimated 7% return
Amid expectations of falling bank deposit rates, Tarya has launched an 18-month savings plan that maintains a fixed margin of 1% above the Bank of Israel's interest rate. Under current conditions, this translates to an average annual rate of approximately 4.5% and a cumulative return of about 6.75%.
Tarya, part of the Luzon Credit and Finance group, is launching an 18-month savings and investment plan, ULTI 18, which offers an estimated interest rate one percentage point higher than the Bank of Israel's base rate. In the current interest rate environment, this equates to an average annual return of approximately 4.5% and a cumulative return of about 6.75% over the full term.
The ULTI 18 plan enters a competitive market as savers seek alternatives to traditional bank deposits, which are facing downward pressure due to Bank of Israel rate cuts. The plan provides a way for money to work without exposure to stock market volatility.
The structure of ULTI 18 is flexible, allowing for either lump-sum deposits or gradual savings via monthly standing orders. The expected interest rate is linked to the Bank of Israel rate, maintaining a constant spread of one percentage point above it.
"If the Bank of Israel interest rate falls, the plan's rate will be adjusted accordingly while maintaining the fixed one-percentage-point gap. Conversely, if the base rate rises, the return for savers is expected to increase as well," the company stated.
Funds deposited into the plan are invested in a diversified portfolio of loans backed by residential real estate in Israel. This allows investors to benefit from the real estate sector without the need to purchase property directly or face stock market risks. The plan also incorporates a protection fund against arrears.
Eyal Alchiani, CEO of Luzon Credit and Finance and founder of Tarya, commented:
"We recognize a desire for the simplicity and security of defined-term savings without compromising on returns. ULTI 18 offers a solution for those who want to save and generate income from the Israeli real estate market."
According to Alchiani, this plan is a key component of the group's broader financial model, which provides a comprehensive financial envelope for entrepreneurs, contractors, and private individuals.
Note: The figures are based on the prime rate for July 2026. This information does not constitute investment advice or a commitment to specific returns. Please refer to the company's website for full terms and conditions.
