Published: December 15 2023
In times of high exchange rate volatility, many people in Hungary choose to deposit their savings in foreign currencies. However, most of these investments earn little to no interest, despite the fact that there are offers in the market that provide interest rates of up to 3-4%. In this article, we will explore the options offered by banks for earning higher interest rates on foreign currency deposits in Budapest.
Foreign Currency Deposit Options
- Erste Bank: Offers the option to deposit in dollars with an annual interest rate of 0.40% for a 6-month lock-in period and 0.70% for a 12-month lock-in period. The minimum deposit amount is $300.
- Gránit Bank: Allows deposits in four different currencies - euro, US dollar, Swiss franc, and British pound. There are no specific requirements for the lock-in period, and customers can choose from various timeframes. The annual interest rates vary for each currency.
- MagNet Bank: Offers euro deposits with lock-in periods of 3 or 6 months, earning an annual interest rate of 1.70% and 2% respectively. The minimum deposit amount is €200. They also provide options to deposit dollars and Swiss francs, but with lower interest rates.
- MBH Bank: Enables deposits in euros, dollars, and pounds, with a minimum requirement of 300 units in each currency. Customers can choose lock-in periods of 1, 2, 3, 6, or 12 months, and the annual interest rate is fixed at 0.01% across all options.
- Oberbank: Offers a euro-denominated TOP deposit with annual interest rates of 2.75% for 1 year, 2% for 2 years, and 1.50% for 3 years. The minimum deposit amount is €400.
- OTP Bank: Provides a wide range of currency options, including euro, dollars, Swiss francs, Swedish krona, Norwegian krone, Czech koruna, Polish zloty, and Bulgarian lev. Customers can choose from 1, 3, 6, or 12-month lock-in periods for each currency, with an annual interest rate of 0.01%.
Take Advantage of Higher Interest Rates
By exploring the foreign currency deposit options offered by various banks in Budapest, you can earn higher interest rates on your savings. Make sure to compare the terms and conditions, including lock-in periods and minimum deposit amounts, before making a decision. Consult with your bank to find the best option that suits your financial goals and risk tolerance.
Questions & Answers
Why do people in Budapest choose to deposit their savings in foreign currency? During times of significant fluctuations in the value of the Hungarian forint, many people choose to convert their savings into foreign currency to protect their savings from potential devaluation.
How do banks in Budapest offer higher interest rates on foreign currency deposits? Banks in Budapest offer higher interest rates on foreign currency deposits as a way to attract customers and compete in the market. These higher interest rates can range from 3-4% for certain foreign currency deposits.
Which banks in Budapest offer foreign currency deposit options? Several banks in Budapest offer foreign currency deposit options, including Erste Bank, Gránit Bank, MagNet Bank, MBH Bank, Oberbank, and OTP Bank.
Which currencies can be used for foreign currency deposits in Budapest? The currencies that can be used for foreign currency deposits in Budapest include the US dollar, euro, Swiss franc, British pound, Swedish krona, Norwegian krone, Czech koruna, Polish zloty, Bulgarian lev, and Turkish lira.
What are the minimum deposit amounts for foreign currency deposits in Budapest? The minimum deposit amounts for foreign currency deposits in Budapest vary between banks and currencies, but they can range from 200 euros to 2 million euros or equivalent amounts in other currencies.
What are the interest rates offered on foreign currency deposits in Budapest? The interest rates offered on foreign currency deposits in Budapest vary depending on the bank and the currency. They can range from 0.01% to 2.75% annually, depending on the specific deposit term and currency.
What are the deposit terms available for foreign currency deposits in Budapest? The deposit terms available for foreign currency deposits in Budapest vary between banks, but common options include 3 months, 6 months, 12 months, and longer terms such as 2 or 3 years.
Are there any special promotions or bonuses for foreign currency deposits in Budapest? Some banks in Budapest may offer special promotions or bonuses for foreign currency deposits. These can include additional interest rates or premium rewards for choosing specific deposit options.
Can Hungarian citizens and foreign nationals participate in foreign currency deposits in Budapest? Yes, both Hungarian citizens and foreign nationals can participate in foreign currency deposits in Budapest. The eligibility criteria may vary between banks, but generally, long-term residents of Hungary can participate.
Are there any restrictions on withdrawing funds from foreign currency deposits in Budapest? The restrictions on withdrawing funds from foreign currency deposits in Budapest may vary between banks and the specific terms of the deposit. It is important to review the terms and conditions of the deposit before making a decision.
