Anyone who buys a home in the future, or refurbishes and upgrades an existing one, cannot go without a word about saving on a home savings fund. What’s more, an attractive form of savings can be even more rewarding if you are eye-catching and get the best home savings deals on time.
This article summarizes the benefits and promotions that can make home savings even better, but also shows you what to look out for when taking advantage of these opportunities.
Would you like to start saving now? Use our calculator to see which of the four home savings is most beneficial to you! Compare offers based on maturity, contract amount or account opening fee.
Why is home saving so attractive?
In this form, our monthly savings can be set aside for a term of at least four years, up to a maximum of 10 years, and the money raised is supplemented by a very attractive public subsidy. In fact, the state adds 30 percent to our savings after monthly payments, up to a maximum of 72,000 forints per year. The maximum amount is subject to the maximum allowed amount being set at $ 50 per month each time.
When it comes to residential use, the full savings – also known as the contract amount – can only be used for housing, real estate purposes, but that means a lot. The apartment savings can be used
renovation of an existing property
to modernize an existing property
to expand an existing property
to build a new property
moreover, to repay the home loan.
Under current regulations, only one such savings can be made under the name of a person, but since an amendment to the law, a home savings contract does not prohibit a policyholder from concluding multiple contracts with close relatives, and these family members use the savings for one purpose. Compare the currently available home savings deals!
The first and largest item is the account opening fee
Another important consideration is that you do not have to pay an account opening fee. A 12 percent return is a very nice performance in such a low interest rate period, and with no risk to our money. The state guarantees, and our savings are protected by the National Deposit Insurance Fund.
However, let’s take a look at how our yields change when we consider the account opening fee: the 12% HSE subsidy is reduced to 10.92% at best. It is still very outstanding, but we can see that the yield may fall to 4.22% as the maturity increases. Other investment products (such as the stock market) can achieve much better results, so you may not want to save money on a home savings.
Deposit Interest Action – Savings Increase
In addition to government support, the savings bank also pays our money, plus deposit interest. True, this is insignificant and, in fact, without government support, the EERM could turn to minus 1.52 percent, so we would lose our savings.
The solution is , however, that from time to time, we may also find deposit-rate housing deposit promotions. For example, Fundamenta’s Housing Fund, ending its mid-November promotion, gave a first-year interest rate bonus of 9 percent.
This way, the deposit interest can increase up to tens of thousands of forints instead of 1-2 thousand for the entire term. At Fundamenta, the value of our savings has increased approximately by which we can cover the account opening fee in the 4 year mode, so in practice we can say that it was free to open an account.