Investment Provident Fund – A Recognized Solution for Liquid Savings for Any Purpose

Save up to NIS 70,000 per year, in an investment track of your choice, and enjoy tax advantages. Meet the Investment Provident Fund – the most attractive savings track available today

What is the most attractive liquid savings option in the market? Where would be the best place to deposit available funds for the short or medium term? Which savings plan offers you the greatest peace of mind? Who offers the best terms for your money?

In the past, the instinctive answer to these questions was “the bank.” Today, the answer is the insurance agent.

Indeed, the short-term savings revolution has placed insurance agents at center stage, offering cost-effective solutions for liquid savings for any purpose.

At the top of the list, standing one level above the rest, is a savings instrument with a name that may sound confusing at first: the Investment Provident Fund.

This is not the traditional Provident Fund you may know from retirement savings. Rather, it is a savings plan that draws on some of the advantages of a Provident Fund (did someone mention "Tax benefits"?), while keeping your money accessible, liquid, and available whenever you need it. That is the true meaning of "Liquidity."

In a “standard” Provident Fund, your money is generally available upon reaching retirement age (62 for women and 67 for men).

Investment Provident Fund – Key Benefits for Savers

• Liquid savings for any purpose – funds may be withdrawn at any time, with no penalty
• Choice of investment tracks with varying risk levels, and the ability to switch tracks at no cost
• One-time or monthly deposits – up to NIS 70,000 per year, per saver
• Lump-sum withdrawals are subject to capital gains tax at a rate of 25%
• After the age of 60, funds may be withdrawn as a monthly pension, with a full tax exemption
• Loan option against the accumulated savings – up to 80% of the total Provident Fund balance
• Management fees on deposits – up to 4% per deposit Management fees on the accumulated balance – up to 1.05% per year

The Investment Provident Fund is designed for anyone who needs to set aside money for a defined period until it is used.

Additionally, it is a preferred solution for those seeking to build an additional financial cushion to supplement retirement savings.

It is also commonly recommended as a long-term savings solution for children.