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Extension of period for home savings subsidies could boost market

An extension of the period home savings may be subsidized from eight to ten years is expected to boost business at home savings banks, daily Népszabadság reported.

Károly Gergely, CEO of Fundamenta Lakáskassza, a home savings bank with about 650,000 clients, told the paper the extension could bring about noticeable change on the slumping market.

Ákos Turny of OTP Bank, which owns the only other home savings bank in Hungary, with about 600,000 clients, said the change would make home savings products more attractive.

Hungarians are eligible for a 30pc subsidy up to HUF 72,000 a year on money deposited in home savings accounts. The extension of the period the savings are subsidized was announced by Prime Minister Viktor Orbán in October, when he unveiled the government's second economic action plan. (MTI – Econews)