Dror Topf, head of the bank's innovation and payments department, explains how it works:
Summer is already upon us, and in addition to the general uncertainty in this challenging year, most of us discover that going on vacation abroad may be particularly expensive. The price increases in Israel and around the world and the weakening of the shekel make flights, hotels, entertainment and shopping more expensive than before.
A significant part of these expenses is a kind of hidden passenger in the budget: currency exchange fees that are charged automatically every time we pay with a credit card. Most of our purchases are made with credit cards, and when we buy with a credit card in a foreign currency, behind the scenes of the purchase, the foreign currency is converted into NIS - According to the representative exchange rate of the foreign currency as published by the Bank of Israel at the time of purchase, plus a rate of about 3% for each transaction.
"Most people take this expense for granted," says Dror Topf, head of Bank Leumi's innovation and payments department, "but it is a significant expense." Bank Leumi offers its customers a service that can save up to 50% of foreign exchange costs for purchases made in dollars or euros with a Leumi credit card.
"If you look at the vacation budget of a couple with two children," says Topf, "for example, a vacation in Europe including the plane tickets can easily cost tens of thousands of euros. The foreign exchange costs they will pay can reach hundreds of euros. Bank Leumi's service can allow any family to cut This expenditure significantly without any effort."
Savings while on vacation:
"The case of the foreign exchange costs," says Topf, whose interview is presented as part of a special series of articles with Bank Leumi experts on financial issues that affect the daily lives of all of us, "is a classic example of a convenient and meaningful service that is important for everyone to know about its existence. The service is available immediately in the bank's application," emphasizes Topf.
To join the service, enter the Leumi app and select "Operations" - "Foreign currency" - "Buy foreign currency and save". Upon joining the service, the credit cards in the account will be linked directly to the customer's foreign currency account, thus enabling the purchase of foreign currency from the shekel account at the end Every business day, if the foreign currency account is in a debit balance (as long as there is a sufficient balance in the shekel account). Topf suggests that each and every customer examine the suitability of the service for their needs before joining.
Savings from the armchair at home:
This service is no less relevant for those who stay in Israel and shop on online sites abroad. Even with such purchases, those who join the service will be able to benefit from savings in foreign exchange costs for purchases in dollars and euros over time, without any effort. The service will continue to work with each purchase. Anyone who manages a household knows how important these savings are to the overall picture."
A small tip for a great service:
Name of the service: Buy foreign currency and save.
Does for you: saves on foreign exchange costs in dollar and euro purchases with a national credit card.
Cost: Joining the service is free of charge. The purchase of foreign currency as part of the service will be carried out according to the representative rate of the purchased currency as published by the Bank of Israel known at the time of the purchase, plus a rate of 1.5%.
How to join: clicking on the app or on the bank's website (or contacting a banker, for those who prefer).