Best Way to Send Money to Israel from Canada | Finder Canada

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How to send money to Israel

Your guide to quick, easy and affordable remittances to Israel.

The Israeli shekel is frequently traded on international markets, which means you have quite a few options for sending money to those living in Israel. By taking the time to compare transfer fees, exchange rates and turnaround, you can find a good deal that won’t break the bank.

Send money to Israel with XE

XE has fast transfers with no fees and a range of foreign currency tools.

  • Send money overseas in just one day
  • More than 40 different currencies available
  • No transfer fees
  • Keep track of your transaction 24/7 online
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Compare transfer options for sending money

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
CAD 1 Same day CAD 0.00 2.613 ILS
13,067
XE has fast transfers with no fees and a range of foreign currency tools. Go to site Show details
CAD 0 Within an hour CAD 3.99 2.616 ILS
13,070
Use promo code 3FREE to send your first 3 transfers with no fee. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
Go to site Show details
CAD 1 1 - 2 days CAD 75.00 2.627 ILS
12,936
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies. Go to site Show details
USD 150 1 day CAD 15.00 2.6 ILS
12,962
Exclusive offer: Discounted exchange rates for your first and ongoing transactions. $0 transfer fee.
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
Go to site Show details

Compare up to 4 providers

Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.

How do international money transfers work?

International money transfers allow you to send money to a recipient in Israel by providing money to a bank or independent money transfer company, which then converts your CAD dollars to Israeli shekels. This can be done in person, over the phone, through a mobile app or online, and you can use cash, a credit card or transfer funds from your bank account. Depending on the provider, your recipient can either pick up the cash in person or have it deposited into their bank account.

Banks versus money transfer specialists

Most major Canadian banks can conduct transfers between the Canada and Israel, but that doesn’t mean it’s cheap. You’ll generally be charged higher fees and be offered a lower exchange rate when you opt for a bank transfer.

Often, you can get a better deal if you use the services of a specialist money transfer company. Instead of offering a wide range of financial products and services as banks do, money transfer companies focus entirely on moving money internationally. They offer lower fees and better exchange rates than banks, and many allow the transactions to be quickly and conveniently made online.

Let’s crunch the numbers: Sending $500 to Israel

To get an idea of costs, let’s compare numerous transfer options and associated fees. This table uses figures that are representative of real fees and exchange rates offered by some providers. Information is current as of April 12, 2020.

Bank transferCash transferMoney transfer service
Fee$50 + additional correspondent bank fees$15$4.99
Exchange rate1 CAD = 2.3997 ILS1 CAD= 2.4574 ILS1 CAD = 2.4596 ILS
Transfer speed2-4 daysMinutesMinutes to several hours
Amount receivedILS 1,079.87ILS 1,191.84ILS 1,217.53
Overall
  • Slowest and most expensive
  • Fastest
  • Best value

The bank option is slow and results the least amount of money to your recipient. If speed is crucial, the cash transfer combines value with nearly instant turnaround. If you decide to go with a money transfer service, your recipient ends up with 137 more shekels and it gets there faster than a bank transfer.

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Foreign exchange rates explained

An exchange rate is used to determine how much a currency is worth when converted into a different currency. Most currencies are flexible, so they won’t be worth the same amount day to day or month to month. If you want a good deal, you’ll have to keep an eye out for a strong rate. But because the Israeli shekel is weak against the Canadian dollar, you can send at least two to three shekels for every dollar you spend.

Today’s exchange rate CAD to ILS

What are my transfer method options?

  • Bank transfers. You can send funds from your bank account to the account of your recipient in Israel.
  • Online money transfer providers. Companies like CurrencyFair allow fast and affordable online transfers from the CAD to Israel.
  • Money transfer companies with cash pick-up options. Companies like Western Union and MoneyGram allow you to send funds overseas that can be picked up as cash from thousands of agent locations across Israel.
  • Certified cheques. Another option is to get a certified cheque from your bank and mail it overseas.

How to send money to Israel

As you can see, there is no shortage of choices when it comes to finding the best way to send money to Israel. While the exact transfer method will differ depending on the provider you choose, these are the basic steps you’ll need to follow:

  1. Check out your options in our money transfer table.
  2. When you’ve found a suitable option, click Go to site.
  3. Register with that provider.
  4. Supply your information and your recipient’s information.
  5. Pay for your transfer.
  6. Save your tracking number to follow up on your transfer.

What to watch out for with Israeli money transfers

Check if these situations apply to you before sending money to Israel:

  • If you maintain a bank account in Israel, you may have to file Form T1135 Foreign Income Verification Statement with the CRA in Canada. This requirement depends on how much is in your foreign account, the purpose of the funds and other factors.
  • A transfer of 50,000 or more Israeli new shekels — or the foreign currency equivalent — is reported to the Israeli Tax Authorities. A transfers of $10,000 or more in CAD is reported to the Financial Analysis and Reports Centre of Canada (FINTRAC). This includes multiple transfers totaling $10,000 CAD or more within a 24-hour period.

While some transfers may be considered foreign gifts and won’t be subject to taxes, you still need to file the necessary forms with your taxes or face penalties.

Emergency transfers

Emergency transfers to Israel are possible, and because the Israeli shekel is so widely traded, you may even be able to send money to your recipient within a few hours without having to pay high fees. However, you’ll still want to be careful. Not every company offers quick speed, low fees and strong exchange rates. Compare your options before committing to be sure you’re choosing the right provider for your needs.

Tips for picking up cash

Exercise a high degree of caution when picking up cash, no matter where in Israel you are. Be sure to:

  • Keep your money hidden.
  • Avoid any questionable parts of town.
  • Deposit the cash you pick up into your bank account as soon as possible.
  • Bring a friend along to provide an extra set of eyes, especially if you’re picking up a large sum of shekels.

Using a credit card in Israel

Bottom line

Israel has one of the most widely traded currencies out there. You’ll have access to plenty of options with low fees and competitive exchange rates, which means you’ll have to take extra care to be sure you’re going with a provider that really caters to your needs. Read our guide to money transfers to get an idea of the general process before you send your next remittance.

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