The Knesset Finance Committee has reconsidered an amendment to the law on the “Savings for Every Child” savings program. Initially, the aim was to exclude banks from participating in the program, but ultimately, the committee decided not to completely exclude banks and instead modified the amendment to allow parents to transfer their savings program from a bank to a pension or investment fund. Previously, transfers were only allowed between banks or between funds.
Since its launch, savings in banks have yielded lower profits compared to other types of funds. Families from socially disadvantaged backgrounds were found to opt for banks more frequently. These decisions led to the revision of the amendment to allow more flexibility for parents in managing their savings.
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