At the end of February every year, we start receiving envelopes or online messages with banking ID cards, one for each bank account we have. The banking ID card is a tool that gives us a general and complete financial picture of our situation at the bank and includes information about household expenses and income, financial assets and liabilities. The information contained in the report is an important tool for supporting economic decision-making, and understanding the information in the report is the first step in changing and improving our conduct vis-à-vis the bank.

The purpose of the regulation that led to the production of this new document is to enable the customer to fully understand his banking situation, to increase his ability to track the account, and to enable him to strengthen his bargaining power over the terms he receives at the bank, thereby encouraging the existence of competition between the banks.

What is a banking ID?

A banking ID card is a report that the bank is obligated to produce annually, showing the customer all the banking financial activity existing in their bank account, as of the last day of the past year. The report includes information about the banking assets the customer has, liabilities, commissions and interest paid. The report comes in two ways: a short, concise report that presents the main points of the data, and a detailed report that delves into the amount of data and information.

The report will be sent to households and small businesses each year on February 28, either through their online banking account or by mail. You can request an up-to-date report at a different time of year and such a request may help improve terms and fees, for example when switching to another bank or before taking out a loan.

The report comes in two versions: the abbreviated report that will be sent to you automatically by mail, email or messages in your online account, and the detailed report that can be found in the reports section of your account on the bank’s website or requested at the bank.

To the Bank of Israel’s explanatory video on the banking ID card.

What data does the banking ID include?

The banking ID includes account and owner details, balances as of December 31 of the previous year, the monthly income in the account versus monthly expenses, the amount of credit facilities and their utilization, deposits and savings, including terms and exit points, housing loans (mortgage) and other loans, including the interest and balance of the loan payable, a portfolio of securities, the fees you paid to the bank in the past year according to the types of commissions, and more.

Bank of Israel Guide

What is not visible in the banking ID?

• Banking data from accounts held at other banks.
• Data on a housing loan whose owner differs from the name of the account holders. A housing loan will be presented in the report if there is full identity between the account holders and the loan holders. For example, if the loan holders are Israel and Israela and the account holder is Israela only, the loan will not be presented in the report.
• Information on non-bank credit cards.
• Details and summaries of expenses in the account do not include payment for fees and interest. This figure appears in Part C4 of the Fees report and in the cells titled Total Income/Interest and Indexation Expenses.
• The amount in arrears on an unpaid loan on time does not include the legal expenses involved in collecting it.
• The data in the report are partly monthly averages and partly balances correct for the end of the year. Pay attention to the definition of the data you are reviewing.

What can be learned from the banking ID card?

Reading the report can help us get answers to many important questions, including:

• How much we lived in the red (had an overdraft) in the past year and how much it cost us.
• Are the terms of the interest we receive on bank credit – loans and overdrafts at the bank good – or can they be improved through negotiations or by switching to another bank?
• How much does managing a bank account cost us, what fees do we pay and will switching to a commission package save us money?
• Do we live by our income or are our expenses higher than our income?
• How many loans do we really have, what are their terms and when do they end?
• Is our decision to save every month based on the right financial decision?

Wise consumerism in the bank account as well? Understanding the comprehensive information accessible in the report is the first step in savings, which may amount to thousands of shekels. After understanding and analyzing the information in the report, you should contact the banker to improve the conditions. Here are 10 things you should do.

Need help understanding the report?

Paamonim consultants will be happy to assist.