Bank Jerusalem Launches New Construction Inputs Index Linked Deposit
Bank Jerusalem has introduced the Construction Inputs deposit, allowing private clients to link apartment savings to the residential construction index to mitigate future payment risks.
Bank Jerusalem has launched the "Construction Inputs" deposit, the only deposit in Israel that allows private customers to link their savings funds to the residential construction inputs index. The deposit is designed to help customers adapt their savings intended for apartment purchases by pegging them to the index used to update future payments for new apartments.
In purchase contracts for new apartments, part of the payment for the apartment may be linked to the residential construction inputs index. This means that an apartment buyer may hold funds intended for future payments over a period, while the payment amount to the contractor may increase in accordance with the rise in the index. The "Construction Inputs" deposit allows these designated funds to be pegged to the same index, thereby reducing exposure to index fluctuations.
The deposit is for a one-year term and offers full exposure to the construction inputs index, alongside the option to withdraw funds at any time with a 35-day advance notice to help customers align with the apartment's payment schedule. The savings amount is updated according to changes in the index. Upon withdrawal, the customer receives the full linkage differentials accumulated during the deposit period, based on the latest index published at the time of withdrawal relative to the base index known at the time of deposit.
Index Performance and Market Context
The residential construction inputs index, to which the deposit is linked, rose by 5.1% during 2025 compared to a 2.6% increase in the Consumer Price Index, and by an additional 2.3% from the beginning of 2026 (through July), compared to a 1.4% increase in the Consumer Price Index for the same period.
«The 'Construction Inputs' deposit is an innovative financial product born out of an understanding of one of the most significant expenses for households in Israel. Pegging to the construction inputs index allows apartment buyers to minimize their exposure to index fluctuations and thereby reduce the risk facing funds intended for future property payments», stated Ofir Ohana, Deputy CEO and Head of the Retail Division at Bank Jerusalem.
