Full Breakdown
Israel’s “Savings for Every Child” Program Shows Strong Growth but Low Parental Engagement
8/12/2026, 8:39:43 PM
Program Overview and Growth
Launched in January 2017, the Savings for Every Child scheme has accumulated roughly NIS 25.4 billion through the end of 2025, according to the Research and Planning Administration of the National Insurance Institute. About 70 % (? NIS 17.7 billion) was deposited by the Institute itself, while parents who elected to double the monthly contribution added roughly NIS 7.7 billion. The accumulated profit reached about NIS 3.85 billion. In 2025 alone, deposits totalled approximately NIS 3.56 billion and 363,909 new child accounts were opened, more than 94.8 % of which were placed in provident funds.
Shift Toward Provident Funds
A legislative amendment effective January 2025 permitted the cessation of bank-based deposits and the opening of new accounts in provident funds. That change spurred the creation of 98,119 new provident-fund plans and halted further bank deposits. By year-end, 84 % of the 3.63 million active plans (about 3.05 million accounts) were managed by provident funds, leaving only 16 % in banks.
Financial Scale and Participation
At the close of 2025, roughly 335,000 plans were inactive due to withdrawals or transfers, while 122,300 plans were fully redeemed and 2,960 partially redeemed, together amounting to about NIS 1.075 billion. Grants totaling approximately NIS 193.3 million were paid to 433,000 children reaching ages 3, 18 and 21. Despite the program’s size, parental active contribution remained modest: only about 2.18 million plans (63.2 %) received the optional extra NIS 57 monthly from child-allowance funds. The rate of parents actively selecting investment tracks fell from about 60 % since inception to 54 % for plans whose selection period ended between July 2024 and June 2025.
Operational Structure and Costs
The scheme’s assets are administered by nine banks and nine provident funds, reflecting a series of mergers (e.g., Halman-Aldubi with The Phoenix, Psagot with Harel, Clal Gemel with The Phoenix). The National Insurance Institute covers management expenses, paying banks an operating fee of six agorot per reporting line and charging provident funds a management fee of 0.23 % per year on the accumulated total.
Implications and Challenges
While the program has succeeded in channeling substantial public funds into long-term savings, the data reveal a persistent gap in parental engagement and investment-track selection. The shift toward provident funds suggests a preference for higher-yield vehicles, yet the relatively low uptake of optional contributions and declining active selection rates may limit the scheme’s potential to maximize future financial security for Israeli children.
