Premium Hungarian Government Security

 

Are you looking for savings that will increase the money you saved with an inflation-indexed yield in the medium or long term? Choose the Premium Hungarian Government Security, which is available for terms of 3 and 5 years and its payment is guaranteed at the end of the term by the Hungarian State.

 

THE PREMIUM HUNGARIAN GOVERNMENT SECURITY IS RECOMMENDED FOR OUR CUSTOMERS WHO:

  • plan an investment for the medium term: the Premium Hungarian Government Security is issued for terms of 3 and 5 years;
  • look for government securities with variable interest rates, with a basic denomination of HUF 1,000;
  • seek investments guaranteed by the state;
  • can assume moderate or medium risks.
  • wish to invest exempt from interest tax

 

WOULD YOU INVEST IN THE PREMIUM HUNGARIAN GOVERNMENT SECURITY?

Contact our colleagues in our national branch network.

INTEREST PAYMENT ON THE PREMIUM HUNGARIAN GOVERNMENT BOND

  • the interest rate of the government security is composed of two elements1:
  • the interest base, which is indexed to inflation;
  • the interest premium, which is specified for the given series in the public offer;
  • interest payment takes place annually.

 

REPURCHASE OF THE PREMIUM HUNGARIAN GOVERNMENT SECURITY

Under specified conditions2, UniCredit Bank quotes daily purchase rates for the series of the Premium Hungarian Government Security; in this way they can be sold easily prior to their maturity.3

 

PLEASE CONSIDER

Please note that the government security is well suited as a long-term investment in the case of a Retirement Saving Account (NYESZ)

Invest a minimum HUF 5 million in the Premium Hungarian Government Security and enjoy the advantages of the UniCredit Premium Banking services.

 

RELATED DOCUMENTS AND LISTS OF CONDITIONS

Related documents are available only in Hungarian language on the Hungarian verison of this site.

 

The receivables embodied by the Premium Hungarian Government Bond will not be time-barred towards the Issuer i.e. the Hungarian State. At the end of the term, the interest will be credited to the customer’s account, together with the principal, after the deduction of the savings tax, if any. The interest income from the Premium Hungarian Government Security issued before 3 June 2019 is taxable; the tax rate for the interest income is currently 15%.

This information is not exhaustive and shall not be considered as an offer, recommendation or investment advice; its only purpose is to draw attention. For the detailed conditions see the General Business ConditionsLists of conditions of UniCredit Bank and the official documents of the Issuer (the Information document and Public offer applicable for the relevant series of Premium Hungarian Government Security). UniCredit Bank Hungary Zrt. (Activity Licence No.: I-1523/2003, a member of the Budapest Stock Exchange) as distributor of the government security, reserves the right to change the conditions. This information constitutes a commercial communication under Act CXX of 2001 on Capital Markets, and a marketing communication under Act CXXXVIII of 2007 on Investment Undertakings, Commodity Dealers and the Rules of Activities in which they may be engaged. Please take note that the tax consequences of the investment may only be accurately decided after consideration of the customer’s individual circumstances, and they are subject to change over time.

1 Each series provides an interest premium that differs by series, in excess of the annual average consumer price index for the calendar year preceding the year when the interest rate was specified, expressed as a percentage, and published officially by the Central Statistical Office, as interest base The interest premium is defined for the given series in the Public offer.

2 For further information on the conditions of government securities quotation, please see section 5.2.2 of the General Business Terms and Conditions regarding Investment Services and the Premium Hungarian Government Security Information document.

3 The price of the government securities is influenced by the changes of the market yield. If the investor sells the securities prior to the maturity, in the event of increasing yields, the price of the government securities may fall below the original purchase price. It means that, for interest-bearing bonds, upon the sale, the buyer pays the time-proportionate interest rate to the seller for the period that has passed since the last interest payment, but the net price, i.e. the price of the principal, may fall below the value as of the date of purchase so the investor may suffer a price loss. If the investor keeps the securities until maturity, it will receive the annual yield recorded upon the purchase, since the market price change that occurred during the term will not appear in the investment, only in the event of sales prior to maturity.

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