Families already collect savings for 350,000 children in Baby Bonds, the amount of which reaches HUF 310 billion.
From February, the annual interest rate of the Baby Bond was raised to a record high of 20.6 percent, the Minister of Finance announced on Tuesday in a video uploaded to his Facebook page.
Mihály Varga said: families are already collecting savings for 350,000 children in Baby Bonds, the amount of which reaches HUF 310 billion.
He added,
the Baby Bond is advantageous because it offers a high yield, the interest rate is the previous year's inflation plus 3 percent, and the state also provides an additional 10 percent subsidy, a maximum of HUF 12,000 per year. There are no account management fees, no taxes, fees or charges
– listed the head of the ministry, adding that the Baby Bond can be opened online simply with a few clicks.
He also said that
Children are also entitled to start-of-life support in the amount of HUF 42,000.
"Hungarian government securities now offer savings opportunities for all stages of life: from Baby Bonds to residential government securities, they provide a safe and high-yield investment," said Mihály Varga.
In the post next to the video, it was written: the exceptionally high yield of the Baby Bond has recently attracted the attention of abusers, who have invested exceptionally large sums in the Baby Bond in a short period of time.
The government's position is clear:
with the high yield of the Baby Bond and the accompanying state support, families who save for their children should be supported, not those who abuse the rules, so the government closes the loophole and maximizes the amount that can be paid into Start accounts annually at HUF 1.2 million. The change affects 1 percent of account holders
they added.
MTI
Cover photo: 13-time world champion, 9-time European champion kayaker Szilvia Szabó buys a baby bond at the Állampénztári Customer Service-Securities Distribution V. district office on February 3, 2014. MTI Photo: Balázs Mohai
