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.

Annual yields on the bonds came to around HUF 15bn.

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 7.4pc, calculating with average annual inflation of 4.4pc in 2025.

Close to HUF 550bn is on the baby bond accounts, in the names of some 450,000 children.
 

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com
 

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