Currency in Israel
A Travel Money Guide to Israel
Ready to experience the beauty of Israel? Whether you're keen on exploring the Tel Aviv Beach or the shores of the Dead Sea, you'll find that Israel is home to a range of experiences. With diverse cultures, outdoor adventures and religious heritage on a desert backdrop, a trip to Israel is one to remember. There's history in every nook and cranny, as well as a vibrant food scene that treats travellers to gourmet flavours.
The currency that is used in Israel
The best currency to use in Israel is the Israeli New Shekel. It’s represented by the international code ILS and the currency symbol ₪.
The Israeli New Shekel, or shekel for short comprises a mixture of banknotes and coins.
Israel banknotes come in denominations of 20, 50, 100, and 200 ILS; coins are in denominations of 10, 5, 2, 1 ILS and 50 and 10 agorot.
Can I Use Australian Dollars in Israel?
As the local currency is the Israeli New Shekel, bear in mind that Australian dollars are not accepted in Israel. In fact, the Aussie dollar has no value to locals and will need to be converted into Israeli New Shekel to make your trip a smooth one.
What Currency Do They Accept in Israel?
As the unit of currency in Israel is shekel, it is strongly recommended for you to acquire the local banknotes and coins prior to your trip. There are also foreign exchangers located at the airport to exchange currencies including Australia, US or New Zealand dollars for the local currency.
Using Your Bank Card in Israel
In this day and age, credit cards, especially VISA and Mastercard are widely accepted in Israel. However, do note that not every place accepts American Express and Diners, although there should be no problem at major hotels and car rentals.
Some of the best travel money cards include debit, credit and prepaid cards. Whether you choose to pay with your card in Israel is still up to you, as long as you’re aware of the fees and charges incurred by the respective cards.
Debit Cards
Debit cards in Israel are best used for ATM withdrawals and card payments. They’re reliable, secure and convenient, making them perfect for travelling around and making payments with ease.
Depending on which card you use, you may face excessive bank fees for each transaction. These fees may include foreign ATM withdrawal fees and conversion fees.
To make your trip hassle-free, look for a bank card that’s designed for frequent travellers. Some travel-friendly debit cards that waive a portion of the charges include Wise, ING, Citibank and Revolut.
Credit Cards
You’ll be able to use credit cards at most locations and at the ATM, but remember to ensure that your card PIN code has only 4 digits as most Israeli card terminals only accept 4 numbers.
Some credit cards come with attractive features for frequent travellers, including complimentary travel insurance, rewards points, and additional security measures.
But the perks are countered by some exorbitant charges if you use your card overseas, including:
- International transaction fees
- High exchange rate margins
- ATM fees
- Potential ‘cash advance fees’ if you use an ATM
As with debit cards, there are some exceptions. Bankwest Platinum and 28 Degrees cards are designed for travellers and waive the currency conversion fees.
Prepaid Travel Cards
Lock in a favourable exchange rate with prepaid travel cards. Bonus: You also get a handy back-up card!
Even though they are convenient, you could end up with hidden fees. Some travel cards still impose the following:
- Currency conversion fees
- Uncompetitive exchange rates
- International ATM withdrawal fees
- Reload fees
- Inactivity fees
How to Exchange Currency in Israel
Having local bills in your wallet while you explore Israel is ideal because there are some situations where you might not be able to pay with card. These activities include visiting smaller food places and shopping stalls, public transportation or even buying at open-air markets where cash would be the predominant paying method.
ATMs in Israel
The extensive network of ATMs will make it easy for you to withdraw your money when you need it. You’ll find them at Ben Gurion Airport and in locations all around Israeli cities. You’ll find that there are two main types of ATM machines: those associated with banks and ATMs that are privately owned by shops. Even though both are trustworthy and legitimate, private ATMs charge a higher commission so we’ll recommend banking ATMs instead.
Important note: Make sure you notify your bank about your travels. If you don’t, they could consider any purchases in Israel as suspicious activity and freeze your card.
Currency Exchange in Israel
There are various ways to convert your AUD into ILS. At the airport, there are ATM machines with reasonable exchange rates where you can withdraw funds using your credit card. There are also bank branches at the airport for you to do so.
In addition, there are several other places if you have brought cash and would like to exchange it for shekels:
- a bank
- the post office
- or a licensed currency exchange shop.
You’ll be able to locate Israel currency exchange stores all over the main cities of Israel, and they usually are open much later than banks and post offices.
Travellers Cheques
We would not recommend travellers cheques as they are uncommon in Israel and banks will charge a high commission and exchange rate. You’ll get more value out of alternatives such as ATM withdrawals and direct cash exchanges.
Buying Israel Currency Before You Go
Buying Israeli New Shekel before you leave home can be a seamless process, with three main options to suit your needs:
- Buy ILS online and have it delivered or collect it in-store.
- Buy from a bureau de change.
- Buy at your home airport.
Since bureau de change desks at Australian airports are renowned for their poor rates, we recommend avoiding them and picking up your currency ahead of time.
A fuss-free way to secure your travel money is to order it online. It can be delivered to your door or made available for pick-up at a convenient location. Online currency providers offer competitive deals you’re unlikely to find elsewhere. For example, S Money offers the same rate listed on Google and XE.com.
If you’re in the city, an alternative is to visit a CBD bureau de change. Suburban outlets don’t have the competition to keep prices low and banks often supply high fees and poor rates.
How Much Cash Should I Bring to Israel?
Avoid having leftover foreign cash at the end of your trip! If you’re not sure where to start, we’ve got you. Simply calculate your budget and plan accordingly.
Now, your budget depends entirely on whether you prefer to backpack or a more luxurious experience. It’s also highly affected by your travel itinerary.
Here are some of the average costs to help you calculate your own budget (all quoted in Israeli New Shekels):
440 ILS
One night stay at a 3-star hotel
55 ILS
Fast food meal
30 ILS
Pint of beer
6 ILS
One-way ticket for local transport
30 ILS
Entry at National Park
