In light of the pandemic, the Hungarian government’s aid to families is still on the rise. The Finance Ministry has revealed this year 27,000 baby bonds have been opened, bringing the total number to 228,000. The total investments have climbed over HUF 1 billion.
Baby bond stocks have been available since 2006. The bonds are government securities that can be collected at the age of 18 years.
New parents are able to open a baby bond account for their child tax-free and without account fees. Initially they receive a start-of-life subsidy of HUF 42,500 and may buy more of the securities as their child grows older.
The bonds pay a 3 percent premium over inflation, the government offers a 10 percent top-up for additional purchases, up to HUF 6,000 a year.
According Mihály Varga, a few thousand HUF payment per month can lead to millions of HUF to be collected in the future for the child.
This is one of the many programs that the government continues in order to aid families. 2020 has been the best year to date for Hungary’s family policy. The Hungarian housing program has expanded further with Minister of Family Affairs, Katalin Novák paving the way. Those who purchase a house with the government’s housing subsidy will be exempt from paying real estate transfer tax.