State Loans and Bonds
Only loan certificates included on the list available on the Bank of Israel website can be redeemed, and under the following conditions:
- The certificate must be presented.
- The redemption is carried out with the registered owner only, or via a transfer form certified by a banking corporation. A transfer letter from abroad needs to be certified by a commercial bank, trust company, a New York Stock Exchange-traded company, Israel Bonds, an Israeli Consul, or savings banks listed in the manual "Directives for Redeeming Foreign Loans in Israel" which was distributed to banking corporations.
- Only to 7th series bonds can be redeemed early, and only in cases with one of the conditions for early redemption. The most common conditions are listed on the certificates.
Information needed to calculate the certificate's payment value, and information about the certificate—such as if it is ineligible for redemption
A resident of Israel can present for early redemption bonds of up to $1,000 par value per calendar year. Tourists visiting Israel are eligible to present for early redemption $2,500 par value for each calendar month of their visit, to defray their expenses in Israel.
A public institution, recognized under Section 46(a) of the Income Tax Ordinance, is eligible to present for early redemption certificates received as a donation, provided that they were issued more than three years before the redemption, and provided that notice of the early redemption was given 120 days before the redemption.
Early redemptions will only be paid in shekels.
The conditions for early redemption of bonds from the 7th series are listed in the "Directives for Redeeming Foreign Loans in Israel" which was distributed to banking corporations
No. Regular bond certificates can be redeemed through most main city branches of commercial banks.
State of Israel certificates with a par value of $100 may be redeemed through three banking corporations without a fee - Discount Bank, First International Bank, and Union Bank; and in other banking corporations with a fee.
The fee is up to one percent of the amount payable, except for State of Israel certificates with a $100 par value, on redemption of which the fee charged is $2 per certificate, which is paid to the redeeming bank by the Bank of Israel.