Youth start-up support and Baby bond
2024. 06. 29.Family support system
Find out about the details!
Youth start-up support
The Hungarian State provides support for young adults to establish their financial foundation through the youth start-up support, available to:
- Hungarian citizens born after December 31, 2005, residing in Hungary, and
- Hungarian citizens born after June 30, 2017, residing outside Hungary or holding a Hungarian ID card.
For Hungarian citizens with residence in Hungary, there is no need to apply for the support. The start-up deposit account is automatically opened.
The support consists of a one-time grant of HUF 42,500, deposited by the Hungarian State Treasury into the child's start-up deposit account.
The amount deposited on the account accrues interest equivalent to inflation until the child reaches adulthood. Upon turning 18, the accumulated savings can be managed by the child. The funds in the start-up deposit account can be enhanced by opening a Treasury Start securities account.
Baby Bond
Baby bond is a securities account opened by the Hungarian State Treasury for a child, under the personal instructions of a parent, legal representative, or relative. It receives transfers from the start-up deposit account, and additional contributions can be made by parents, grandparents, relatives (natural persons), or even municipal governments. These contributions are eligible for state support, which equals 10% of the annual deposits, up to a maximum of HUF 12,000 per year.
The amount of the start-up support, as well as all deposits and accrued interest credited to the account, automatically convert into Baby Bond securities. These are secure long-term investments due to Hungarian state guarantee. Baby Bond earns interest 3 percentage points above the average inflation of the previous year, providing a premium over the annual interest rate of the start-up deposit account.
Starting from February 13, 2024, the total amount deposited per Start account in a calendar year cannot exceed HUF 1,200,000.