Good news for families raising children: as of February 1, the annual interest rate of the Baby Bond will be raised to 17.5 percent, the Minister of Finance announced on his Facebook page.
Mihály Varga highlighted that families are already saving for 300,000 children in the tax-, contribution- and fee-free Baby Bond. Their sum reaches HUF 200 billion.
He added that with a monthly payment of a few thousand forints, several million forints can be accumulated by the time the young person turns 18.
In the post published on his social media page, the Minister of Finance also explained why the Baby Bond is beneficial: any amount can be set aside every month; the interest rate is the previous year's inflation plus 3 percent, and the state provides an additional 10 percent, but also a maximum of HUF 12,000 special support each year. There are no account management fees, no taxes, fees or charges.
Among the advantages, he mentioned that the Baby Bond can be opened easily, even online, and it also comes with a start-of-life subsidy of HUF 42,500.
According to the detailed information recommended by the Minister of Finance, https://www.babakotveny.hu/ provides support, which is deposited in a deposit account with a minimum interest rate equal to the rate of inflation in the Hungarian Treasury. In order for this starting amount to be transferred to an account in the child's name and to earn interest there in Baby Bonds, a Start securities account must be opened at the Hungarian State Treasury.
The annual interest rate of the Babakötvény is currently 8.1 percent - read babakotveny.hu .
MTI
Cover photo: MTI/Balázs Mohai
