The Baby Bond was abused, the government introduced restrictions

Mihály Varga said: the abusers “flew at” the benefits provided by the Baby Bond with large sums of money.

Photo: MTI/István Filep

A provision was published in the Magyar Közlöny overnight, according to which only HUF 1.2 million per year can be added to those Start accounts, on which children can also save money by purchasing Baby Bonds.

In a video on Tuesday morning, Finance Minister Mihály Varga reminded us that the interest rate on the baby bond has risen to 20.6 percent since February (previous year’s inflation plus 3 percent), and that Hungarians have a total of HUF 310 billion in tax-, contribution- and fee-free savings for 350,000 children. .

With the current decision, a loophole was closed because, as he wrote, the exceptionally high yield of the baby bond attracted the attention of abusers in the recent period, and in a short time they invested exceptionally large sums in this government bond.

Announcement: higher interest rates for families with Baby Bonds, closed loophole for abusers of the rules.

The interest rate on the Baby Bond has been at a record high of 20.6% since February. Families are already collecting savings for 350,000 children in Baby Bonds, the amount of which reaches HUF 310 billion.

The exceptionally high yield of the Baby Bond has attracted the attention of abusers in the past period, who have invested extremely 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 saving money for their children should be supported, not those who abuse the rules. Therefore, 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% of account holders.

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