End to subsidies triggers rush for home savings accounts

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Service providers are experiencing a late rush for home savings accounts, with clients aiming to open accounts before the expected end of state support for the scheme in the coming days, according to a press release sent to the Budapest Business Journal by brokerage City Hitelbróker Kft.

"Due to the proposal to abolish the state subsidy for home savings accounts submitted on Monday morning, inquiries about home savings accounts have grown greatly in the past few hours," said  Richárd Vajnági, CEO of City Hitelbróker Kft. (CHB). According to the press release, 19% of the companyʼs clients indicated their intention to open a new home savings account last week, due to the rumors of state support decreasing to 20%.

As reported earlier, while state subsidies would no longer be available for the scheme under the proposal, accounts opened before the law comes into effect would be unaffected by the changes.

Within the current framework, the 30% state support per account was maximized at HUF 72,000 per year, meaning that a client with a HUF 20,000 monthly input got as much as HUF 72,000 over a 10-year period.

According to a 1,000-person representative survey by CHB, every fifth client of the company would have started a new account with 30% state subsidies if a decrease to 20% was announced. Around 30% of those who would have opened an account before the decrease took place would have opened multiple accounts.

"In the past few hours, masses of clients sought out our colleagues and partners in order to start a new home savings account today, because they did not want to lose the 30% state subsidy," added Vajnági.

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