As of October 1st, we are only able to choose from the services of three home savings banks in Hungary, if we start saving for real estate purchase or renovation.
Good Finance Home Savings Bank will suspend its sales on October 1, 2018, which was announced this morning on their website. Existing clients have nothing to do, new contracts are accepted based on bids submitted by September 28.
The reason for the suspension has not been disclosed
The main profile of the Dutch-based Good Finance Group is life and pension insurance products and related financial services. Good Finance Home Savings Bank started its operation in Hungary on November 27, 2013, and has become the fourth largest player in the Hungarian home savings market in the last nearly 5 years, after E-money Home Savings Bank, Fundamenta Lakáskassas and Estre Home Savings Bank. By the end of 2017, it had deposits of HUF 16.2 billion. Unlike other domestic savings banks, Good Finance did not engage in lending.
The following information regarding the suspension was shared with their clients: The change is not an additional task for their existing clients, as their contracts will continue to be managed by Good Finance, And it has been stated that other members of the Good Finance Hungary Group and their clients decision on a home savings bank.
The first financial interest in Good Finance
The Home Savings Bank is not the first financial interest in Good Finance to divest in Hungary. As Portfolio.hu recalls, in early summer it was revealed that Raiffeisen Bank took over the Good Finance Credit Zrt’s performing loan portfolio, while Intrum’s claims manager took over its overdue loans. Similar steps have already been taken by Good Finance in the CEE region: selling life insurance interests to the NN Group in the Czech Republic and life and pension insurance interests in Slovakia.
From October 1st, you will be able to open an account with the three largest home savings banks: Fundamenta Lakáskasse, E-money Home Savings Bank and Goodbank Home Savings Bank.
If you are planning to buy a property in the future, or if you want to renovate your existing home or house, you may want to start collecting and contracting with a financial institution, as the state can supplement your savings with 30% subsidy.
It’s worth taking a look
When concluding a home savings contract, the biggest expense is usually the account opening fee, which in case of a 10-year savings period contract can reach up to 75 thousand HUF, and then we have only one contract.
Although it is only a one-time cost, it is a good idea to find out which home savings fund offers its clients this discount, as a good decision can save you tens of thousands of forints.