🏦 Savings & Investment
Keren Kaspit Setup
Set up Israel's national savings plan correctly from day one and unlock thousands of shekels in government-matched bonuses — with zero duplicate pension overlap.
Set up Israel's national savings plan correctly from day one and unlock thousands of shekels in government-matched bonuses — with zero duplicate pension overlap.
Keren Kaspit (קרן קיספיט) — literally "saving fund" or "kernel" — is a long-term savings program run by Israeli banks and investment houses. It is not a pension fund. It is a separate, complementary savings vehicle with unique tax advantages and government bonus incentives.
Unlike a pension fund (bituach menahalim), which is designed primarily for retirement income, Keren Kaspit is a pure savings vehicle. There is no insurance component, no disability coverage, and no employer обязательств (obligations) — just your money, growing with government-backed incentives.
The most compelling reason to open a Keren Kaspit is the government bonus program (Maslulim). Depending on your chosen track, the state will match a portion of your savings — effectively free money added to your account every year.
Because it operates independently from your pension, Keren Kaspit gives you full, penalty-free access to your savings at any age (subject to tax rules), making it an ideal vehicle for medium-term goals, a safety buffer, or a supplement to your retirement corpus.
Annual contribution limits are set by the Tax Authority — ₪70,800 per person per year (as of 2024). Contributions are not tax-deductible like pension payments, but withdrawals are taxed at a favorable capital-gains rate rather than as ordinary income.
Understanding the fundamental differences between Keren Kaspit and a pension fund is the first step to making the right choice for your financial situation.
Keren Kaspit is entirely separate from bituach menahalim. It has no employer contributions, no life insurance, and no linking to your salary or seniority. It is a pure savings account with investment options.
Choose from three state-matched tracks (Aleph, Bet, Gimel). The government adds between 20% and 30% on top of your own contributions within certain limits — a return you simply cannot get elsewhere.
As of 2024, each person can contribute up to ₪70,800 per year across all Keren Kaspit accounts. Contributions beyond this limit lose their bonus eligibility and may be taxed differently.
Unlike pension funds which lock money until retirement age (60–67), Keren Kaspit allows withdrawals at any time. This makes it ideal for goals that are not decades away — a home down payment, a business opportunity, or a financial cushion.
Most providers offer multiple investment tracks — from conservative interest-bearing tracks to aggressive stock-market tracks. Your allocation can be adjusted over time as your goals and risk tolerance evolve.
Keren Kaspit statements are reported to the Tax Authority automatically. Your financial advisor can help you review whether your current balance and contributions are optimally structured each year.
Each track offers a different level of government matching. Understanding how they work is essential to maximizing your annual bonus.
Designed for the most risk-averse savers. Your money is primarily invested in government bonds and interest-bearing instruments. The government match is modest but guaranteed.
🎁 Up to 20% government bonus on contributionsA blend of equities and bonds. This is the most popular track for most savers — offering meaningful government bonus potential with moderate market exposure and volatility.
🎁 Up to 25% government bonus on contributionsPrimarily invested in Israeli and global equities. Highest potential returns and highest bonus potential — but also the most exposed to market fluctuations. Best suited for savers with a long horizon.
🎁 Up to 30% government bonus on contributions
Staying within the official limits ensures you receive the maximum government bonus each year without losing eligibility or triggering unexpected tax events.
| Parameter | Amount (ILS) |
|---|---|
| Maximum Annual Contribution (per person) | ₪70,800 |
| Maximum Monthly Contribution (equivalent) | ₪5,900 / month |
| Bonus Ceiling — Maslul Aleph | Contributions up to ₪5,800/yr earn bonus |
| Bonus Ceiling — Maslul Bet | Contributions up to ₪4,800/yr earn bonus |
| Bonus Ceiling — Maslul Gimel | Contributions up to ₪4,000/yr earn bonus |
| Government Bonus Rate — Maslul Aleph | 20% of contribution (max bonus ~₪1,160) |
| Government Bonus Rate — Maslul Bet | 25% of contribution (max bonus ~₪1,200) |
| Government Bonus Rate — Maslul Gimel | 30% of contribution (max bonus ~₪1,200) |
The most common mistake is opening a Keren Kaspit account without aligning it with your existing pension, income level, and savings goals. Here is the right way to do it.
Before opening an account, review your current pension balances, other savings vehicles, and your income. We analyze whether you are already maxing out tax-advantaged pension contributions before allocating to Keren Kaspit.
Based on your age, time horizon, and risk tolerance, we help you select between Aleph, Bet, or Gimel. The "highest bonus" is not always the best fit — optimal track selection considers your full financial picture.
Different banks and investment houses offer Keren Kaspit products with varying fee structures, investment track quality, and online platforms. We compare providers to find the best fit for your needs.
We help you plan a monthly contribution amount that maximizes the government bonus zone without exceeding the ₪70,800 annual cap. Timing and consistency matter for bonus calculation.
Contributing to Keren Kaspit simultaneously with maximum pension contributions can create redundancy. We verify you are not overlapping benefits that could be better allocated elsewhere.
Bonus rules, contribution limits, and tax treatment can change year to year. We schedule an annual review to ensure your Keren Kaspit remains optimally structured as regulations and your life evolve.
These two savings vehicles serve different purposes. Most people benefit from both — but understanding the distinction is critical.
| Feature | Keren Kaspit | Pension Fund (Bituach Menahalim) |
|---|---|---|
| Primary Purpose | General / medium-term savings | Retirement income |
| Employer Contributions | None | Yes — typically 6–13% of salary |
| Government Bonus (Maslulim) | Yes — 20–30% match | No bonus program |
| Life / Disability Insurance | None | Included |
| Annual Contribution Limit | ₪70,800 / year | Up to ~₪40,000+ / year (salary-linked) |
| Lock-In Period | None — accessible anytime | Locked until retirement age (60–67) |
| Early Withdrawal | Allowed, subject to tax | Penalty applies before age 60 |
| Tax Treatment of Withdrawals | Capital gains rate (~25%) | Ordinary income tax rate (up to 47%) |
| Management Fees | Typically 0.5–1.5% | Typically 0.5–2% |
| Linked to Salary | No | Yes — contributions scale with income |
One of Keren Kaspit's most attractive features is the preferential tax treatment of withdrawals compared to ordinary income.
Withdrawals from Keren Kaspit are taxed at the capital gains rate — approximately 25% on real gains — rather than your marginal income tax rate. This is significantly more favorable than pension withdrawals.
Tax is applied at the time of withdrawal, not on annual accrual. This gives you control over when to realize gains and potentially manage your tax bracket in any given year.
Once you reach the age of 60, you can withdraw accumulated savings with no exit commissions or penalties — only standard capital gains tax applies on the growth portion.
If you withdraw funds and later want to re-contribute, you can — but you will not retroactively receive missed government bonuses. It is generally better to continue contributing steadily rather than to stop and restart.
Keren Kaspit is not for everyone. Here is when it is the right tool — and when you should prioritize other savings vehicles first.
If you are already contributing the maximum to your pension fund and receiving full employer matching, Keren Kaspit is the logical next step for additional tax-efficient savings and government bonuses.
If you are saving for a goal that is 3–10 years away — a home down payment, a business launch, a wedding — the accessibility of Keren Kaspit without lock-in or penalties makes it ideal.
Without an employer contributing to a pension, self-employed individuals often have more flexibility with Keren Kaspit as a primary savings vehicle with government bonus benefits.
If you carry credit card or other high-interest debt, the guaranteed "return" from paying off that debt far outweighs any Keren Kaspit bonus. Clear debt before contributing.
Keren Kaspit should never replace a liquid emergency fund (3–6 months of expenses in a regular savings account). Build your safety net first, then maximize Keren Kaspit.
If you are within 5 years of retirement and not yet maximizing your pension, redirect those contributions to the pension first — the employer match and tax deductibility are more valuable at that stage.
Book a dedicated Keren Kaspit Setup session and get a personalized plan — from choosing the right track and provider to structuring contributions that maximize your government bonus every single year.
📅 Book a Keren Kaspit SetupFill in the form and we'll get back to you within 24 hours to schedule your Keren Kaspit Setup consultation.