How to Convert and Transfer Money in Israel — What You Need to Know

When it comes to currency exchange in Israel, understanding exactly what you are being charged — and how — can make a significant difference to how much money you actually receive. At IsraTransfer, transparency is at the heart of everything we do, and we want to make sure you have the right information to ask the right questions.

There are generally three ways to convert money in(to) Israel:

• Exchanging cash

• Writing cheques

• Wiring money

Exchanging Cash

Cash is the simplest method. Take your foreign currency to a local money changer and receive Shekels in return. For smaller amounts — pocket money, day-to-day expenses — this is perfectly straightforward. Rates between money changers are broadly similar, so shopping around for a marginally better rate is unlikely to be worth your time. There are no additional fees beyond the exchange rate itself.

Verdict: For small amounts of cash, find a local money changer you trust and you'll get a fair rate.

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Writing Checks

For many English-speaking olim, cashing checks was historically the most popular method for converting money — particularly for amounts up to $10,000. The appeal is simple: you receive Shekels in cash on the spot, and the recipient doesn't need a bank account to collect the funds.

However, it's important to understand that with checks you are charged twice — once on the cashing fee and once on the exchange rate. Many clients come to us believing they are only paying 1.5–2%, unaware that the exchange rate applied adds a further 2–3 agurot on top. In reality, the total cost of cashing a check is typically at least 2–4% when both charges are factored in.

It's also worth noting that some money changers now request an "open check" — a cheque without a name, allowing them to add their clearing firm's details. If you are asked for an open check, make sure you know exactly who is clearing it and why.

Verdict: Check cashing carries a minimum cost of around 2% once all charges are included. The only advantage is receiving cash immediately — but make sure you understand the full cost before proceeding.

Wire Transfers

A wire transfer is the most straightforward method for moving larger sums of money, but sending directly from your overseas bank account to your Israeli account comes with drawbacks. Standard bank transfers can take up to five business days, and Israeli banks typically charge fees to receive the transfer, convert the funds, and apply their own — often unfavourable — exchange rate.

The good news is there is a better way.

Using a foreign exchange specialist such as IsraTransfer, you can transfer funds in as little as 48 hours, with no Israeli bank receiving fees and a significantly better exchange rate than the bank would offer.

Verdict: Sending directly through your bank is slow and costly. Using a broker like IsraTransfer, you can receive your Shekels within two business days, with no fees and at a better rate.

Domestic Receiving Options — A Smarter Way to Transfer

Wire transfers don't have to be expensive. IsraTransfer's domestic receiving options allow clients in the US, Europe, and the UK to transfer funds with no international wire fees — making it one of the most cost-effective methods available.

Currency Exchange rate comparison

Which Method is Right for You?

Each method has its place, and the right choice depends on how much you're transferring, how quickly you need it, and what matters most to you. That said, for anyone with an overseas bank account looking to move money to Israel efficiently and cost-effectively, wire transfers through a foreign exchange specialist represent the best combination of speed, value, and simplicity.

If you'd like to find out more about how IsraTransfer can help with your next transfer, get in touch with our team today.