Maximize profits: RiseUp's money challenge for Israelis

The security and economic situation preoccupies many of us. While we try to survive, we also have to contend with soaring inflation and sky-high interest rates.  However, many Israelis do not take simple actions to maximize the profits from their free money. The phenomenon of keeping money in a checking account is common among Israelis, even though with simple actions this money can yield them thousands of shekels a year.

An analysis of the banks' reports for the second quarter of 2024 shows that the public holds about NIS 500 billion in cash, an amount that accrues almost no interest, and this in an environment of 4.5% interest and rising inflation. Just this week, the Central Bureau of Statistics published that the inflation rate in Israel is on the rise and stands at 3.6% in the last year - above the target of the Bank of Israel. The direct meaning of inflation is that our money is simply worth less, so in practice the general public loses money for every NIS 10,000 a family holds in the bank account, it loses NIS 360 a year.   

In order to further encourage Israelis to save, the Israeli fintech company RiseUp set out on a new challenge. As part of the challenge, which is called "taking the money out of the bank account", the company's customers will be able to overcome many psychological barriers and transfer their money to savings channels such as a deposit or financial funds in order to enjoy a high return.

Until today, in most banks, in order to obtain a deposit with a good interest rate, the Israeli customer had to be a premium customer of the bank. Another way is to open a new bank account and transfer activity and salary to it, an action that is difficult for most of us to do. As part of a collaboration with the Bank of Jerusalem, RiseUp customers will be able to open a deposit at the Bank of Jerusalem for a period of up to two years with monthly liquidity at an interest rate of 4.3%, one of the highest in the market, without the need to open a current account at the bank and in an easy and quick process that takes only 2 minutes and at no cost (the interest can change throughout the period, depending on changes in the prime interest rate). 

Yuval Smet, CEO and founder of RiseUp, explains: "Our money is a valuable asset, so why wouldn't it actually work for us? If we assume that half of the amount lying in the current account would have gone to deposits with interest, the banks would have had to pay the public another NIS 10 billion a year. RiseUp is proud to lead the move to get the money out of the checking account and manages to bring its customers the best savings options in the market."

Moshe Omer, deputy to the CEO of the Bank of Jerusalem and manager of the strategy and financial management division, said: "We are happy to cooperate with RiseUp with the common goal of encouraging the customers of all banks to transfer free money from their checking account to a deposit. This cooperation is another pillar of the bank's policy, as part of which it offers throughout the year to customers of all banks deposits with the highest interest rates in the market, regardless of the amount and without the need to open a current account."