Baby Bonds to Pay Record Yield in Hungary
- 3 Feb 2025 12:50 PM

The bonds pay a 3pc premium over the annual average inflation rate in the previous calendar year. In the next interest period, the bonds will pay a yield of 6.7pc, calculating with average annual inflation of 3.7pc in 2024.
Over HUF 400bn is on baby bond accounts, in the names of some 400,000 children.
New parents who open a baby bond account for their child get a HUF 42,500 start-of-life subsidy and may buy more of the securities until the child turns 18. Additionally, the government offers a 10pc top-up, up to HUF 12,000 per year, on additional purchases of the bonds. Other relatives of children may also open up the accounts.
Meanwhile, higher tax allowance to leave HUF 754bn with families in 2025
A higher tax allowance for families raising children will leave HUF 754bn with taxpayers in 2025, Robert Zsigo, a state secretary at the Culture and Innovation Ministry, said on social media.
Zsigo noted that the government was doubling the tax allowance for families raising children in two steps, benefitting 1 million families and 1.7 million children.
A personal income tax exemption for under-25s will leave Hungarians with HUF 215bn, while PIT exemptions for mothers under 30 and mothers with four or more children will leave taxpayers with HUF 20bn and HUF 52bn, respectively, he said.
Source:
MTI - The Hungarian News Agency, founded in 1881.
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