Approximately 4-5% of households’ HUF 8,000-10,000 billion savings in bank deposits and investment certificates have been channelled to long-term investment accounts (TBSZ), according to a statement of Budapest Bank. TBSZ accounts were introduced at the beginning of 2010.
Budapest Bank manages 2,300 TBSZ accounts with average assets of almost HUF 10 million per account. Total investments on TBSZ accounts at BB reach HUF 22 billion. The bank foresees an increasing interest in such accounts due to the recently reduced lower personal income tax rates and to Hungarians’ improving financial awareness in terms of self-provision.
The number of state-subsidized individual retirement savings accounts (NYESZ) managed by BB reached 2,000 with total assets of HUF 6.7 billion. Legislation establishing NYESZ accounts, which are subsidized by the state, came into effect at the start of 2006. The state provides a tax relief of 20% of annual contributions into the accounts up to Ft 100,000. Unlike other forms of state-subsidized pension savings schemes, savings in NYESZ accounts may be put in a number of different kinds of investments, including shares.(BBJ)
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