You have money to save, and three main ways to do it: a keren hishtalmut (study fund), an investment provident fund (kupat gemel lehashkaa), or regular savings at a bank and in the market. All let you accumulate, but each differs on the questions that really matter: when can you withdraw, how much tax do you pay, and what does it cost to manage. This article offers a general comparison, without numbers that go stale.
Three tools side by side
The six-year rule, without the fog
The core idea of a study fund is a vesting period. If you leave the money in until the period ends, which is usually six years from the first deposit, you can withdraw the balance without tax on the gains, within the ceilings. An early withdrawal may trigger tax. There are also cases where the period is shorter, such as saving for retirement purposes, so check the rules that apply to you. The tool below shows what the vesting period looks like on a timeline.
Which tool for what
A study fund fits when...
- The goal is six years or more away: buying a home, studies, renovation or general saving.
- Your employer deposits, which is a benefit you shouldn't give up.
- You're self-employed and want saving with a tax benefit.
- You can afford to leave the money alone.
Flexible saving fits when...
- You might need the money within a year or two.
- It's an emergency fund or a near goal.
- You want full control over choosing products.
- You already have a study fund and the ceiling is already used.
Where to put the money: a quick check
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Frequently asked questions
Not always. It is usually a big advantage when you can wait and use the benefit, but being locked is a cost. The choice depends on your goal and your need for liquidity.
An early withdrawal may be taxed on the gains, and there are exceptions in some cases. Check the current rules before any withdrawal.
Yes. They are complementary tools with different roles. Keep an eye on the fees in each.
A pension fund is designed to provide an annuity in retirement and usually includes insurance. An investment provident fund is a more flexible saving tool. More in our guide to provident funds.
Shavve connects your pension, study and provident funds, read-only, and shows them in one place with fees and deposits.