What is a Savings Policy?
Savings policies are savings instruments managed by large institutional bodies with a wide range of investment tracks. Historically, savings policies have proven capable of generating much higher returns than bank deposits, while providing full flexibility and the ability to withdraw at any time.
Key Benefits
High Potential Returns
HighThese are savings managed by large institutional bodies with a wide range of investment tracks. Historically, savings policies have proven capable of generating much higher returns than bank deposits.
Flexibility and Liquidity
ImmediateYou can deposit lump sums or set up monthly standing orders, and the money remains liquid – it can be withdrawn at any time. This provides complete freedom and flexibility in managing your savings.
Family and Children Adaptation
FamilySavings policies can also serve as dedicated savings for children or as a family savings fund, with complete transparency and simple management suitable for the whole family.
Transparency and Professional Management
ProfessionalThe saver receives clear periodic reports on investment performance, and gains peace of mind knowing that the money is managed by capital market experts with extensive experience and a proven track record.
How Does It Work?
Choose Deposit Amount
FlexibleYou can deposit a lump sum or set up a monthly standing order according to your convenience and ability
Choose Investment Track
CustomizedTogether we'll choose the investment track that suits you - conservative, balanced, or aggressive
Professional Management
ExpertsThe money is managed by professional investment experts with ongoing monitoring and periodic reports
Access to Money Anytime
LiquidThe money remains liquid and accessible - you can withdraw part or all of the amount at any time as needed
What a savings policy actually is
A savings policy (Polisat Hisachon) is a long-term, market-linked savings instrument issued by an insurance company. The money is allocated to one of several investment tracks. The product is liquid — withdrawals are possible at any time — and there is no statutory annual deposit ceiling, which makes it useful for amounts above the investment provident fund cap.
No statutory annual deposit ceiling
Unlike investment provident funds and study funds, deposits are not capped by regulation. Useful for larger lump sums or recurring transfers.
Investment-track based
You select a track from the issuer's offering. The policy can be adjusted over time as goals or risk tolerance change.
Fully liquid
Withdrawals are available at any time. Capital gains tax applies on profits at redemption at the prevailing rate.
Common for family savings
Often used for designated child savings, generational gifts, or a parallel household savings layer alongside pension and study fund.
Comparison to Bank Deposit
Savings Policy
Recommended- High potential returns
- Professional expert management
- Flexibility in deposits and withdrawals
- Variety of investment tracks
Bank Deposit
Limited- ×Fixed and low interest
- ×No active management
- ×Fixed period commitment
- ×Limited investment options
Who a savings policy typically suits
Households with savings above the provident-fund ceiling
When the annual investment provident fund ceiling is not enough to absorb your deposits, this is the usual next layer.
Parents saving for children long-term
A common use case is opening a designated policy per child for medium-to-long horizons.
Self-employed with irregular cash flow
Lump-sum deposits in good months are easy to absorb; deposits are flexible and not tied to payroll cycles.
Recipients of a one-off windfall
Inheritance, a property sale, or a bonus that should not sit idle in a checking account.
What this product is not
- Returns are not guaranteed. The policy is exposed to capital market risk and short-term losses are possible.
- It is not a pension fund. There are no built-in disability or survivors components, and the product does not pay a guaranteed monthly retirement income.
- Capital gains tax applies on profits at redemption at the prevailing rate.
- Fee structures vary between issuers. The advertised return is not the same as the post-fee return.
- The policy is not a bank deposit. The money is invested, not held in cash.
Common mistakes I see with savings policies
Treating the policy like a high-interest bank account
It is a market-linked product. Short-term withdrawals during a downturn can lock in losses.
Choosing the highest-return track without context
Track choice should be driven by goal, time horizon and household exposure — not by last year's headline return.
Comparing policies on return alone
Two policies with similar returns can deliver very different net outcomes once management fees are factored in.
Mixing the kids' fund with the household emergency money
Using one policy for unrelated goals usually compromises both. Designated policies per goal are easier to manage.
Skipping a periodic review
A policy opened five years ago at a 25-year-old's risk profile is rarely the right policy at age 35 with two children and a mortgage.
What I check before recommending a savings policy
- The goal of the savings — generational, household, child-specific, or short-term.
- Time horizon and how soon (if ever) the money may be needed.
- Existing exposure across other savings products to avoid duplicating risk.
- Issuer fee structures and how they evolve over time within each track.
- Track variety, including whether the issuer offers index-tracking and Sharia/Halacha-compliant tracks if relevant.
- The flexibility of the standing order and whether the household cash flow can sustain it.
What to bring to a savings policy meeting
Bringing the right paperwork lets us model after-fee outcomes per track instead of working from estimates.
- Latest statement from any existing savings policy or investment fund.
- Mislaka (clearinghouse) report, if available — it surfaces all pension, provident, study fund, and insurance products in one place.
- ID document (for new applications).
- Household budget snapshot — net income, fixed expenses, and the realistic monthly amount available for savings.
- A list of named goals (e.g. children's savings, downpayment, retirement supplement) and rough timelines.
If you cannot locate a document, we can usually retrieve it. Knowing what is missing is itself part of the diagnosis.
Important note on returns, regulation and scope
- •The information on this page is general explanatory content. It is not personal investment or tax advice and is not a substitute for a personal review.
- •Returns depend on the chosen track and on market performance. Past returns do not guarantee future returns and short-term losses are possible.
- •Capital gains tax rules and product terms are subject to regulation and to the issuer's policy. They may change over time.
- •Any decision to open, switch tracks within, or redeem a savings policy should be made only after a personal review and is subject to the policy's terms and applicable law.
Frequently asked questions about savings policies
No. Both are long-term, market-linked savings instruments and both are liquid, but a savings policy (Polisat Hisachon) is issued by an insurance company and has no statutory annual deposit ceiling, while an investment provident fund (Gemel LeHashkaa) is capped annually by regulation and offers an optional pension-track conversion at age 60.
No. The policy is invested across one of the issuer's tracks and is exposed to market risk. Past performance does not guarantee future returns and short-term losses are possible.
Yes, the policy is liquid. Capital gains tax applies on profits at redemption at the prevailing rate. Withdrawing during a market downturn can lock in losses, so the timing of redemption matters.
Minimums are set by each issuer and are usually low. There is no statutory annual maximum, which is one of the practical reasons to choose this product over an investment provident fund for larger amounts.
Yes. Designated child savings is one of the most common use cases. We typically open a separate policy per goal so that performance and decisions stay clean.
Track switches within the same policy are usually allowed and are not a tax event because no cash is redeemed. The exact rules are set in the policy's terms and may vary between issuers.
No. It is general educational information. A binding recommendation requires a personal review of your situation, your existing products, your goals, and applicable regulation.