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What are State of Israel bonds?

What are State of Israel bonds?

Israel Bonds is the commonly-known name of Development Corporation for Israel (DCI), the U.S. underwriter of debt securities issued by the State of Israel. DCI is headquartered in New York City, and is a broker-dealer and member of the Financial Industry Regulatory Authority (FINRA).

How do I cash an Israeli state bond?

Regular bond certificates can be redeemed through most main city branches of commercial banks. State of Israel certificates with a par value of $100 may be redeemed through three banking corporations without a fee – Discount Bank, First International Bank, and Union Bank; and in other banking corporations with a fee.

How do State of Israel bonds work?

State of Israel. Israel uses the loaned money to help strengthen almost every part of its modern, innovative and diverse economy. pay interest to you, the bondholder, and repay the loan at the end of its term. Like other bonds, investing in Israel Bonds puts your capital at risk.

Are Israel bonds guaranteed?

The biggest difference is that Israel bonds are guaranteed by the Israeli government, not the U.S. government. And although Israel has never defaulted on any interest or principal, it is less credit-worthy than the United States.

Are Israel bonds tax free?

Yes. Interest on an Israel bond is taxable, which is the reason a W-9 form is filled out when the bonds are redeemed. Israel bonds are taxed in a similar way to a regular U.S. corporate bond, in which both the interest and capital gains are subject to taxation.

What happens when Israel bonds mature?

Once a bond reaches maturity, the holder can submit a request to redeem the bond and receive any accumulated interest. For U.S. bond holders, this is done by submitting a notarized request to Computershare, Israel’s fiscal agent based in Rhode Island, declaring intent to redeem.

Do Israel bonds accrue interest after maturity?

Israel Bonds do not accrue interest after maturity.

Can I sell my Israel bonds?

How do I sell an Israel Bond? Ownership of Israel Bonds can be transferred only under specific circumstances. To make a transfer, a bond holder must issue a formal transfer request form to Israel’s fiscal agent Computershare.