Balance on Baby Bond Accounts Reaches HUF 310 bln
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Savings on some 350,000 baby bond accounts have reached HUF 310 billion, Finance Minister Mihály Varga said in a message posted on social media on Tuesday.
Varga noted that the rate on the bonds, which pay a 3pc premium over the previous year's average annual inflation, now stood at a record high 20.6%.
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 10% 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.
Varga said the government was setting a HUF 1.2 million threshold for annual subscriptions of the baby bonds. The new cap will affect about 1% of baby bond holders, he added.
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