The Savings for Every Child program is receiving a significant boost, but at the same time presents a reality of gaps in the public's willingness to actively manage its financial future. According to a comprehensive report published on Wednesday by the Research and Planning Administration of the National Insurance Institute, from the program's launch in January 2017 through the end of 2025, a cumulative total of approximately NIS 25.4 billion was transferred to the program. Out of this amount, about NIS 17.7 billion (70%) was deposited directly by the National Insurance Institute, while about NIS 7.7 billion was deposited by parents who chose to double the monthly amount. The cumulative profit generated by the plans reached approximately NIS 3.85 billion.
In 2025 alone, about NIS 3.56 billion was deposited into the plans, and new savings accounts were opened for 363,909 children - over 94.8% of them in provident funds. At the end of the year, 3,633,573 active savings plans were registered in Israel, alongside approximately 335,000 inactive plans due to withdrawals or transfers. During the year, 122,300 plans were fully redeemed and another 2,960 were partially redeemed, totaling approximately NIS 1.075 billion. In addition, about 433,000 grants were paid to children reaching ages 3, 18, and 21, totaling approximately NIS 193.3 million.
The data points to a continued clear trend of moving from banks to provident funds, which are perceived as a more profitable long-term growth engine. Currently, 84% of active savings plans (about 3.05 million savings accounts) are managed in provident funds, compared to only 16% in banks. The trend received a boost thanks to a legislative amendment that came into effect in January 2025, which for the first time made it possible to stop deposits into bank savings and open new savings in a provident fund. During the year, this change led to the opening of 98,119 new plans in provident funds alongside the cessation of deposits in banks.
Parents Are Leaving Money on the Table
Despite the impressive accumulation, the data reveals that the public is still not utilizing the full potential of the program. Out of the savings into which deposits were made in 2025, parents chose to add NIS 57 each month from child allowance funds to double the savings in only about 2.18 million plans (63.2%). In addition, the rate of active selection by parents regarding investment tracks since the inception of the program stands at only about 60%, while in plans whose selection period ended between July 2024 and June 2025, the rate dropped to 54%.
Under the program's outline, the state deposits NIS 57 each month through the National Insurance Institute for every child until the age of 18, alongside the option for an additional deposit of NIS 57 from the child allowance. Alongside ongoing savings, special grants are awarded: For children born before January 1, 2017, a grant of NIS 568 is deposited at age 18, and an additional grant of an identical amount is deposited if the funds are not withdrawn by age 21. For children born from January 1, 2017 onward, grants of NIS 284 are paid at age 3 and at bar/bat mitzvah age, and a grant of NIS 568 is paid at age 21. The funds are currently managed by 9 banks and 9 provident funds (following various mergers over the years, such as the merger of Halman-Aldubi with The Phoenix, Psagot with Harel, and Clal Gemel with The Phoenix). The National Insurance Institute bears the management costs, paying the banks an operating fee of 6 agorot per reporting line, and paying the provident funds a management fee of 0.23% per year of the accumulated total.
The National Insurance Institute reiterated and emphasized the importance of active parental involvement in financial decision-making for their children. Acting NII Director-General Tzvika Cohen addressed the findings, stating: "The Savings for Every Child program is first and foremost an investment in equal opportunity. Alongside ongoing support for Israel's children, we seek to provide a better financial starting point at the beginning of their adult lives. For many families, every additional deposit today can turn into a significant resource in the future, narrow social gaps, and strengthen young people's ability to set out on an independent path with a more stable financial foundation. This is also the time to call on parents to be more involved in choosing savings plans - whether through an additional deposit if possible, as well as greater involvement regarding second and subsequent children in the family. This involvement is what will make the difference between tens of thousands of shekels and hundreds of thousands of shekels for the children in the family, and that is significant."