Reduced Bank Fees For Small Businesses

Guested from Miriam Schwab:

PSA announcement regarding banking and small businesses in Israel:

No matter how many years I’m in business, I’m constantly learning things that I can’t believe I never knew. Like how to properly calculate overhead and how it needs to properly factor it into pricing (no, I’m not totally dumb, but I never quite got it until my amazing bookkeeper showed me the light recently. I can get into this another time).

Anyways, for years we’ve been paying ridiculous bank fees at Bank Mizrahi for our business account. The fees were often double and triple those that we would pay in our personal account. For example, a bank transfer via the website cost 1.20 NIS in our personal account, and 12.90 NIS in the business account! It drove me crazy, but I figured that’s how it is and there was nothing to do about it.

I recently had to meet with the bank manager. During our meeting, I mentioned that the fees they are charging are ridiculous. She said “Companies with revenue of under 5 million NIS a year can pay the same rates as personal accounts. We don’t do this automatically because we can’t tell if a company has different accounts elsewhere.”

What? You let me pay these rates and lose thousands of NIS because you couldn’t be bothered informing your long-time client about how the fees work?

So now I’m telling you. If you are running a small business and have a business bank account, you may be entitled to lower bank fees if you aren’t already getting them.


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