Discount Challenges Big Banks: Eliminates Overdraft Interest Rates

Discount Bank came out yesterday in a surprising move, accompanied by an advertising campaign that challenges the big banks. In this context, the Bank announced the cancellation of the overdraft interest in current accounts for holders of credit facilities in the amount of NIS 2,000.

In addition, the bank reduces the interest rates on debit balances for framework holders over NIS 2,000. It also reduces the quarterly credit allocation fee by more than 50% – which will be NIS 10 per quarter. This is the lowest amount among the five largest banks.

The bank also announced the launch of a package of advanced tools that will assist customers in sound financial management and reduce the use of overdraft. As part of this, an SMS message will be sent informing customers about entering a minus. The bank will operate a banking-based connection open to the service of Fintech, which helps to avoid paying unnecessary interest on deviations from the framework. Discount’s current moves and those that will follow – are not coincidental at the present time. They are intended to prove that the bank is fighting the two big banks (Hapoalim and Leumi).

Discount Bank (Photo: Miran Spielberg)

If the regulator and the finance minister are convinced that Discount is indeed helping the competition, they will not force him to part ways with his credit card company by the end of the year. It may eventually be decided to grant an extension to the bank for another two years.

CEO Uri Levin said: “This is the first move in a series of planned steps, focusing on responding to the things that bother our customers the most. “Discount aims to be the best bank for its customers and to create real competition in the banking system.”

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