Comparison and Transfer of Provident Funds

Provident funds are long-term savings plans for retirement. They allow people to accumulate funds that they can use to support themselves after they stop working

There are two main types of provident funds:

Annuity-paying provident funds allow members to receive a monthly annuity after they retire.
Non-annuity-paying provident funds do not allow members to receive a monthly annuity. Instead, members can withdraw their funds as a lump sum.

The State of Israel offers tax benefits to encourage people to save in provident funds. These benefits include tax deductions and tax credits.

When choosing a provident fund, it is important to consider the following factors:

Performance: The performance of a provident fund is measured by its returns. The higher the returns, the more money you will have saved for retirement.
Fees: Provident funds charge fees for managing your money. It is important to choose a fund with low fees so that you keep more of your savings.

Flexibility: Some provident funds offer more flexibility than others. For example, some funds allow you to make withdrawals before retirement.

If you decide to transfer your provident fund to another fund, you can do so easily and simply. The process is usually free of charge.

Comparison and Transfer of Training Funds

Training funds are also long-term savings plans, but they are designed to help people pay for education or training. They are available to both employees and the self-employed.

Like provident funds, training funds offer tax benefits. Contributions to training funds are tax-deductible, and withdrawals from training funds are tax-free after a certain period of time.

The main factors to consider when choosing a training fund are the same as for provident funds: performance, fees, and flexibility.

It is also important to note that there are some restrictions on withdrawals from training funds. For example, you may not be able to withdraw money from a training fund before you have completed the required number of years of contributions.


Both provident funds and training funds can be valuable tools for saving for retirement or education. The best option for you will depend on your individual circumstances and goals.