Bank of Israel rate drops from 4.5% to 3.25% in a year

The Bank of Israel rate stood at 4.5% a year ago. Today it is 3.25%. That matters directly if you are weighing a loan to cover a deposit or bank guarantee for a lease.

If you are a tenant considering a loan instead of pulling cash out of savings for the deposit, the annual cost of that money is now clearly lower than a year ago: 3.25% versus 4.5%. If you are a landlord carrying a mortgage on the flat, that same gap changes your monthly payment.

Before you sign the terms of a guarantee or a loan, ask your bank for the exact rate they quote you, and hold it up against this official rate. That gives you a real benchmark, not a guess.