Published: December 11 2023
Banks in Budapest are currently offering deposit interest rates that are higher than the inflation rate. This means that customers can earn a real return on their savings, especially if the projected inflation rate for 2024 decreases to 6%. Despite the overall decrease in interest rates due to central bank rate cuts, the significant drop in inflation now makes the offers from a few competing banks much more attractive to customers.
Banks offering inflation-beating interest rates
- Several banks in Budapest are offering higher interest rates on fixed-term deposits compared to the current or expected inflation rate.
- The Cetelem bank has the most attractive offer for a two-year fixed-term deposit, with an annual interest rate of 8.75%.
- The Gránit Bank offers the highest interest rate on a 13-month fixed-term deposit, with an interest rate of 9.5% for its KamatMax Plusz deposit.
- The eBank offers an interest rate of 8.50% on a three-month fixed-term deposit, and the Tripla3 deposit offers an interest rate of 8.20% for the same duration.
- The MagNet Bank's Hello forint deposit offers a 5.25% annual interest rate for a six-month fixed-term deposit, with a bonus depending on the amount deposited.
- The Prizma forint deposit offers various interest rates depending on the duration of the fixed-term deposit, with rates ranging from 7.02% to 9.10%.
- The Oberbank offers the most favorable deposit rate for those who deposit at least 8 million forints, with rates ranging from 7.75% to 9%.
Conditions and considerations
- Some banks require additional conditions to be met to qualify for the higher interest rates on fixed-term deposits.
- The Prémium forint deposit offered by OTP requires having a Bázis account and using the Prémium Next service, with a minimum net income of 700,000 forints or a minimum balance of 10 million forints.
Customers in Budapest have the opportunity to earn higher interest rates on fixed-term deposits compared to the inflation rate. It is important to consider the various offers and conditions set by the banks before making a decision on where to deposit savings.
Questions & Answers
What are the current interest rates on bank deposits in Budapest? Some banks in Budapest are offering interest rates on deposits that beat inflation. The rates vary depending on the bank and the duration of the deposit, but they can range from 8% up to 9.5%.
How does the interest rate offered by banks compare to the inflation rate in Hungary? Currently, the inflation rate in Hungary is around 7.9%. Some banks are offering interest rates on deposits that are higher than the inflation rate, which means that depositors can potentially earn a real return on their money.
Which banks in Budapest are offering the highest interest rates on deposits? Cetelem, Gránit Bank, eBank, and MagNet Bank are some of the banks in Budapest that are offering competitive interest rates on deposits. Cetelem offers an annual interest rate of 8.75% for a two-year deposit, while Gránit Bank offers a rate of 9.5% for a 13-month deposit. eBank offers a fixed rate of 8.5% for a three-month deposit, and MagNet Bank offers a rate of 5.25% for a six-month deposit.
What is the minimum amount required to open a deposit account in Budapest? The minimum deposit amount required to open an account varies depending on the bank. Some banks require a minimum deposit of at least 100,000 forints, while others require a minimum deposit of at least 500,000 forints.
Are there any conditions or requirements to earn the advertised interest rate on deposits? Some banks may have certain conditions or requirements to earn the advertised interest rate on deposits. For example, Gránit Bank offers a special interest rate of 9% for a six-month deposit, but it requires the opening of a new account and active account usage. It's important to carefully review the terms and conditions of each bank before opening a deposit account.
What is the duration of the deposit options offered by banks in Budapest? The duration of the deposit options offered by banks in Budapest can vary. Some banks offer deposit terms ranging from three months to two years. The longer the deposit term, the higher the interest rate offered may be.
Can foreign nationals living in Hungary open a deposit account? Yes, foreign nationals living in Hungary can open a deposit account with banks in Budapest. However, it is important to check with each bank regarding their specific requirements for opening an account as a foreign national.
Can depositors withdraw their money before the end of the deposit term? In most cases, depositors are not able to withdraw their money before the end of the deposit term without incurring penalties. It is important to carefully consider the deposit term and potential withdrawal needs before making a deposit.
Is the interest rate on deposits fixed or variable? The interest rates on deposits offered by banks in Budapest can be both fixed and variable. Some banks offer fixed interest rates for the entire deposit term, while others offer variable interest rates tied to the central bank's policy rate.
How can customers in Budapest compare the different deposit options and interest rates? Customers in Budapest can compare the different deposit options and interest rates offered by banks by visiting the websites of the banks or contacting them directly. It is advisable to consider the interest rate, deposit term, minimum deposit amount, and any additional conditions or requirements before making a decision.