Paybox allows users to receive interest on money in their checking account

Sick of your money "lying around" in your checking account? Paybox announced that they will pay 3% per year on money that is left in their app.

 Online banking (illustrative). (photo credit: PIXABAY)
Online banking (illustrative).
(photo credit: PIXABAY)

The PayBox application announced, on Monday, that it will pay its customers from all banks an annual interest of 3% on the balance in the app.

The new service is a significantly better alternative for over NIS 500 billion that are currently "lying around" in bank checking accounts, on which the public receives no interest at all.

Paybox stated that as part of the service, users will receive interest on their personal balance, which will continue to be available to them for withdrawal, transfer or payment, at any time and at no cost. The interest will be granted to customers of all banks who have a Paybox credit card.

Newcomers will be able to order the free digital card (with no card fees for life) directly from the app, and start loading money into the balance and receive interest on it.

Paybox's multi-stage plans

According to them, in the first stage, because of regulatory limitations, it will be possible to hold a balance up to a threshold of NIS 20,000, which will be increased later.

 Illustrative image of a piggy bank on a pile of money. (credit: WISCONSIN PUBLIC RADIO)
Illustrative image of a piggy bank on a pile of money. (credit: WISCONSIN PUBLIC RADIO)

The interest will accrue daily and will be paid once a month directly into the paybox balance. The service will be uploaded to the app starting Monday, and in the coming days will be made available to all customers.

Paybox says that the current move is another step, and the most significant so far, in the transformation of Paybox from an application for transferring and collecting money for groups, to an app for managing money outside of banks, which poses significant competition to the banking system and offers superior products and services to those offered by the banks.

They stated that this is a process that began about a year ago with the offer of a credit card with no card fees for life,then continued two months ago with a monthly deposit offer at double the interest rate of the average interest rate offered by the banks (a deposit that attracted thousands of depositors, who deposited over NIS 145 million in 3 weeks) and now continues with the payment of interest on the balance.

CEO of Paybox, Eric Frishman: "The move we launched today breaks the banking convention according to which 'the public deserves nothing for liquid money' and creates a real alternative to the half a trillion shekels that today lie in current accounts, generating huge profits for the banks, while giving the public nothing. From today, customers of all banks will be able to load this money into Paybox, keep it liquid and receive decent interest on it. This is another and significant step in making Paybox a real competitor to the banks, which is in line with the spirit of the times, in which the public is looking for any way to increase their disposable income."

PayBox is an application for transferring money between individuals and collecting group money, with over 3.5 million downloads and over 1 million different users per month.

Paybox customers can perform a wide range of actions, including: keep balances in the application separately from the bank account and pay from these balances anywhere using a digital-free credit card; transfer and receive funds; establish groups to collect funds for common purposes; accumulate and redeem supreme benefits (Shufersal's customer club) in more than 100 chains; attach and redeem shopping cards of the gold note from Shufersal and more.

Paybox was established in 2014 as a start-up company and is currently an independent banking subsidiary corporation, owned by Discount Bank (50.1%) and Shufersal (49.9%). Paybox is managed by Eric Frishman and the chairman of the company is Uri Levin, CEO of Discount Bank.