Withdrawing money from savings


​Savings money may be withdrawn only when the child turns 18 years old, baring exceptional circumstances. Inquiries regarding the sum of accrued savings, withdrawal dates and more, are to be addressed to the provident fund or the bank which manages the savings.

To withdraw saved money, you must fill out a Money Withdrawal Request and submit it to the provident fund or the bank, which are administering your child's savings.

Withdrawal from age 18 to 21

Children born up to 31.12.2016 – When they reach 18 years of age, the NII will deposit a grant of NIS 522 in their savings account. This amount will be available for the children's use and they may withdraw it with parental permission.

Children born from 1.1.2017 – Will not receive the grant at the age of 18, but will get NIS 261 at age 3, and a further sum NIS 261 at the age of bar/bat mitzvah (13 for boys and 12 for girls).

Withdrawal from age 21

When the child turns 21, the National Insurance Institute will deposit a another savings subvention of NIS 522 , on condition that savings moneys were not withdrawn previously.
As of the age of 21, the child may withdraw savings money at any time without the authorization of his or her parents.

Withdrawal before age 18 due to the child's health condition

The parents of child in life threatening health situation can withdraw savings money prior to his 18 birthday, in order to cover his or her medical needs, under the approbation of a physician of the National Insurance Institute.

Upon approval by a physician, a NIS 522 savings subvention will be deposited (immediately and not at age 18), and parents will be able to withdraw savings money.

After the withdrawal, the NII will continue to transfer money for the child's savings, up to age 18.

At age 18, the NIS 522 subvention will not be deposited (since it has already bee paid at the time of the withdrawal). However, if the child continues to save until age 21, he or her will obtain another subvention of NIS 522 , paid at age 21.

Withdrawal due to child's death

When a child, for whom child allowances were paid, dies, his or her parents are entitled to receive child allowance during the month of his death and for three additional months afterwards. During that period of time, monthly deposits will still be made to the savings plan. At the end of that period, parents will be able to withdraw savings money.

Tax deduction on capital returns

When savings money are withdrawn, in part or in whole, return on capital tax will be deducted from the withdrawal amount.

Please note, the child whose savings are administered by a provident fund and who decides to leave his accrued savings money in the provident fund for investment until retirement age, will be able to receive savings money after retirement as an allowance, without paying any tax on capital returns.

as of Jan 01, 2022