"Another good news for families raising children: the interest rate on the Baby Bond has risen to a higher than ever, to 8.1 percent as of February," Finance Minister Mihály Varga announced on his social media page.

The minister added that the baby bond is becoming increasingly popular: families are already collecting such savings for 273,000 children, the value of which exceeds HUF 153 billion.

Last year, parents bought a third more baby bonds than the year before, he pointed out.

In February, the Hungarian Treasury also paid the annual interest after eight series, the sum of which exceeds HUF 3 billion.

In his post, Mihály Varga explained why the baby bond is beneficial:

  • Tax-, contribution- and duty-free.
  • As of January, we doubled the state support after payments: from HUF 6,000 to HUF 12,000.
  • There are no account management fees.
  • The interest rate is 3 percent higher than current inflation.
  • Thus, with a monthly payment of just a few thousand forints, several million forints can be accumulated by the time the young person turns 18.

Source: hirado.hu

Photo: MTI/Márton Mónus