Money and Currency in Israel: What Every Traveler Needs to Know
If you’re planning a trip to Israel, understanding how to handle money will help you make the most of your experience, from dining out to exploring markets and paying for public transport. Israel’s currency is unique, and knowing the essentials about its coins, notes, exchange options, and payment norms will help you avoid unnecessary fees and make your trip hassle-free.
This comprehensive guide covers everything travelers need to know about money in Israel, from the shekel’s background to practical advice on safely managing cash and cards.
The Official Israeli Currency: Shekel (ILS)
The official currency in Israel is the New Israeli Shekel, commonly abbreviated as NIS or ILS. This currency, referred to simply as “shekel” within Israel, is symbolized by the ₪ sign. Each shekel is divided into 100 agorot (singular: agora), and the currency is managed by the Bank of Israel, which issues the banknotes and coins in circulation.
Israel uses both coins and banknotes, with coins available in 10 agorot and ½, 1, 2, 5, and 10 shekel denominations. Banknotes come in 20, 50, 100, and 200 shekels, with each bill depicting notable Israeli poets along with anti-counterfeit features like watermarks and holographic strips.
This currency is known as the “New Shekel” because it replaced Israel’s previous currencies in a series of reforms meant to stabilize the economy. Initially, Israel used the Israeli Pound (or Lira) from 1948 until 1980, when it was replaced by the Israeli Shekel. In 1985, a new, more stable version of the currency was introduced and has since been in use.
How do you say money in Israeli?
In Israel, the primary language is Hebrew, and the word for money in Hebrew is “כסף” (kesef). In casual conversation, Israelis might also use the slang term “מזומן” (mezuman) to refer to cash specifically.
If you’re asking about the Israeli currency, it’s the Israeli New Shekel (שקל חדש), abbreviated as ILS or symbolized as ₪. Locally, people call it “shekel” (singular) or “shekalim” (plural).
Currency Exchange in Israel: Where and How to Get Shekels
When arriving in Israel, it’s best to exchange a small amount of money before arrival or to use an ATM at the airport. ATMs are a popular option because they generally offer competitive exchange rates and are widely available in cities and towns across Israel. To avoid unnecessary transaction fees, try to make larger withdrawals less frequently, as most foreign cards will incur a fee per transaction.
You’ll also find many currency exchange bureaus in popular tourist areas and airports, which provide a convenient option but may have higher rates or hidden fees. For the best deal, consider comparing rates at a few locations before making an exchange.
Israeli banks offer currency exchange as well, though rates may be slightly less favorable, and banking hours can be limited. Many hotels also offer currency exchange services, but this is often the least economical option.
If you’re paying by card, always select to pay in shekels rather than your home currency – if given the option. Local currency payments typically provide the most favorable rates.
Using Credit Cards, Debit Cards, and Cash in Israel
In Israel, credit and debit cards are widely accepted, especially in larger cities like Tel Aviv and Jerusalem. You can use them at most hotels, restaurants, and shops.
Visa and Mastercard are the most commonly accepted, while American Express and Diners Club may be less widely used. It’s also a good idea to notify your bank of your travel plans before leaving, to avoid any potential card freezes due to unusual activity.
Contactless payment in Israel is also growing in popularity, and many establishments in urban areas accept mobile payment options like Apple Pay and Google Pay. Nevertheless, it’s wise to have a small amount of cash for smaller vendors, tips, and certain shops or cafes that may prefer cash payments, particularly outside of urban centers like Tel Aviv and Jerusalem.
When it comes to cash, it’s helpful to keep small denominations on hand for markets, street vendors, or taxi rides. Larger bills may be harder to break in some places. Many smaller businesses appreciate exact change, so carrying coins and smaller bills can be convenient.
Practical Tips for Managing Money in Israel
To help you manage money confidently in Israel, here are essential tips that combine security with convenience.
Carry a Mix of Cash and Cards
While Israel is becoming increasingly cashless, carrying a modest amount of shekels is helpful for smaller purchases, especially in markets or rural areas. You can rely on credit or debit cards for larger transactions. Using cards also reduces the need to carry large sums of cash, which is safer.
Where and How to Exchange Money Securely
When exchanging money, using ATMs within banks or well-lit areas is advisable for security and reliability. ATMs in Israel are typically available in multiple languages, making them accessible for international travelers.
Currency exchange bureaus are also common in popular tourist locations and offer convenience, but be aware that some may impose additional fees or offer slightly less favorable rates than ATMs. To avoid misunderstandings, always check the rate and confirm any fees before completing a transaction.
Avoid Common Scams and Be Aware of Local Customs
Familiarizing yourself with local customs and prices can help you avoid overpaying in certain areas. In busy markets, especially in popular tourist zones, there’s often room for bargaining in Israel, so it’s normal to negotiate. However, it’s best to approach this in a friendly manner and keep negotiations respectful. Avoid drawing large amounts of cash in crowded places, and use money belts or inside pockets for better security.
While counterfeit currency is rare, it does occasionally circulate. For this reason, be sure to familiarize yourself with the appearance and texture of shekel notes, particularly larger denominations. Security features such as holograms and watermarks are good indicators of authenticity.
Keep Emergency Contacts Handy
In case of a lost or stolen card, contact your bank immediately to freeze the card and prevent unauthorized transactions. Israel’s banks typically provide English-speaking support, and many offer 24-hour customer service hotlines. It’s also wise to keep a list of emergency contact numbers, including your bank’s hotline and the nearest embassy, as a backup.
Understanding Prices and Costs in Israel
Israel is generally more expensive than some other countries in the region, so it’s helpful to have an idea of typical Israeli costs before arriving. Meals, for example, may range from ₪50 to ₪150 in casual dining spots, with prices rising significantly at fine-dining restaurants.
For transportation, taxis use meters. A “Rav-Kav” smart card is an economical option for bus and train travel, offering discounts on public transit.
Accommodation costs vary widely, from budget hostels and guesthouses to luxury hotels, especially in Tel Aviv and Jerusalem, where prices are typically higher. Planning for these general costs can help you set a realistic budget for your trip and avoid surprises.
Handling money in Israel is simple with a little preparation. Whether you’re exploring local markets, enjoying a meal out, or navigating Israel’s public transit, understanding the basics of currency in Israel, exchange, and payment methods will make your trip more enjoyable.
With this guide, you can confidently manage your finances, avoid unnecessary fees, and focus on soaking up all that Israel has to offer!
