Exciting figures unveiled on Hungary's Baby Bond
In response to a request from Grantis, the Hungarian State Treasury shared the following interesting information about Baby Bond holders:
- This year, the number of Start securities accounts in the Treasury has already exceeded 400,000, and the stock of the Baby Bonds exceeds HUF 400 billion.
- The experts added that since last summer, when there were 360,000 accounts, the number of accounts has increased by more than 10 per cent. And the value of the accounts per capita is now around HUF 1 million.
- The total amount of savings in children's Start accounts increased by HUF 119 billion last year.
- In 2024, 2,779 young people withdrew their savings from the Baby Bond Start account, and a total of 5,364 accounts were closed by 2021. The average payout is more than HUF 1.5 million.
- According to the State Treasury, last year families paid the maximum amount of HUF 1.2 million for 4,766 children. Although this is a good number considering the size of the sum, only 1.2% of all Start accounts was affected by such high payments.
The release notes that after last year's record high interest rate of 20.6%, as of February this year most series of Baby Bonds are now paying only 6.7%.
The Hungarian State Treasury expects the pace of account openings and the growth of savings in the Start securities account to continue, despite falling interest rates, and to remain a popular choice.
The experts at Grantis pointed out that above-inflation returns can also be achieved tax-free through other savings options available to children, such as children's insurance savings schemes, which do not even require the beneficiaries to turn 18 to withdraw the money (as in the case of Baby Bonds).
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