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Starting account or bank deposit: Which one to choose?

Starting account or bank deposit: Which one to choose?



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If we are careful parents, we need to think in good time about how we can make our child's life easier. There are several options to choose from: open a bank deposit for your child or choose a Start account? Which is more advantageous?

If you want to start cleaning up your baby when you are born, you have to think about the best, cheapest, simplest solution to put money aside for the next few days. The fact that children born after January 1, 2006 will automatically receive start-up support from the state: $ 42,500 may be a relief to the designer. In order for this money to be worth the money that young people have when they reach adulthood, we do not have to do anything other than open a Start Securities account at the closest Treasury boys. We determine the amount of your monthly payment, and the state adds additional support to your growth amount each year.

And the bank deposit?

In this case, you can visit one of the banks and choose from a variety of deposit options. But we need to know that bank deposits are subject to tax. In the case of a normal tax, a large surplus of deposits will pay 16 percent interest on the deposit, plus a further 6 percent health contribution (EHO) on the interest on the deposit. We also need to pay attention to the interest rate deposit we choose: if the interest rate changes, it may change over the term to some external factor, or based on the bank's decision. We can't plan exactly. At the same time, we can open a fixed rate deposit: but this can also be a disadvantage. Just one example: if we spend money like 7 percent a year, knowing that there is 4-5 percent inflation in the economy, and that is what we expect to earn more in the next one year. However, if, after a few months, inflation rises to 8 percent and may continue to fall in the residual maturity of the maturity, then the value of the money, taking into account inflation, will be less when the deposit matures.

Simple, it's cool

However, if we live with the opportunity offered by the state to open a Start Account, the start-up support amount, along with the yields, will automatically be invested in a Baby Bond, which is also secured by the Hungarian State guarantee.
All cash in the account, as well as the annual interest, are automatically invested in a series of baby bills that match your child's birth year. Annual interest rates are always reverted to the same serial number, so you don't have to pay attention to that. It also makes it convenient for you to set up a monthly one-time transfer trust. And what's more important: the account manager, the account manager, the other account manager, the commissions fulfilled, and the Hungarian Treasury does not charge any fees.
A child can get the amount of money raised on a Start Securities account up to the age of 18: unlike bank deposits, there is no need to pay taxes or EHO.