STABILITY SAVINGS ACCOUNT
The essence of the Stability Savings Account (SMSZ) is that the payment of taxes and contributions can be prevented with regard to the savings on this account, subject to compliance with the statutory conditions.
- the SMSZ consist of a securities account and a cash account;
- the account keeping contract can be concluded in writing only;
- upon opening the account, the account holder (only natural persons) must deposit at least HUF 5 million to the SMSZ cash account,
- only a single deposit can be made to the cash account;
- on the securities account only dematerialised government bonds issued by the Hungarian State and the other Member States of the European Economic Area denominated in HUF can be purchased;
- the order for government bonds can be issued only subject to coverage of the cash account balance;
- the balance of the Stability Savings Cash Account can only be increased by crediting the yield of the investment and the consideration for the sale of the securities but by no further deposits;
- the securities account-linked cash account is a non remunerated account;
- no payment orders can be submitted to the cash account apart from the transfer order for withdrawal;
- any amount paid by a natural person to the SMSZ is deemed to be income acquired at the time of the deposit, of domestic origin, unless otherwise provided by international agreements.
How can you open a Stability Savings Account?
Contact our colleagues at our nationwide branch network.
The amount deposited upon the opening of the SMSZ, the yield of the investment instruments and the profit on the transactions are subject to personal income tax liability. The level of this is equal to the tax rate applicable to the interest income of resident natural persons. The tax payment obligation arises when the account keeper makes a payment from the SMSZ to the account holder.
If the time between the occurrence of the tax payment obligation and the deposit to the SMSZ account
- is less than three years, the tax base is 200% of the withdrawn amount;
- at least three years but less than four years, the tax base is 100% of the withdrawn amount;
- at least four years but less than five years, the tax base is 50% of the withdrawn amount;
- at least five years, no tax payment liability occurs, since the usual market value of the securities on the account at the time of the withdrawal is deemed to be a withdrawn amount.
Apart from personal income tax, no other tax and contribution payment obligation is attached to the SMSZ.
Tax rules have been changed for deposited amounts on Stability Saving Accounts (SMSZ) between 1st of July 2015 and 1st of July 2016:
- if withdrawal occurs within 1 year from the time of the deposit, tax is 20%, tax base is 100% of the withdrawn amount
- if withdrawal occurs after 1 year from the time of the deposit, tax is 10%, tax base is 100% of the withdrawn amount.
The tax after this income is calculated and deducted by the account keeper, and declares it to the tax authority as a gross obligation not linked to private individuals. The account keeper report to the state tax authority on the opening of the SMSZ, on any deposit to the account, anonymously, without identifying the account holder.
The account keeper issues a certificate on deposits to and withdrawal from the SMSZ to the account holder.
- In the event of the account holder's death, one or more beneficiaries of the SMSZ can be appointed in writing. The beneficiary can be appointed on a dedicated separate death provision.
- In the event of appointing a beneficiary the SMSZ is not part of the legacy.
If the withdrawal from the Stability Savings Account takes place to a beneficiary or an heir, the beneficiary or the heir are to be considered as account holder for the purposes of the tax liability under Section 39/B of Law CXCIV of 2011, and the deposit of the account holder and the heir as the deposit made by the beneficiary or the heir. The withdrawal from the Stability Savings Account to the beneficiary or the heir is not subject to any other payment obligation apart from the tax liability under Section 39/B of Law CXCIV of 2011.
UniCredit Bank keeps SMSZ only for resident clients.
For your attention!
- Deposit a minimum of HUF 5 million savings with UniCredit Bank and enjoy the benefits of the UniCredit Premium Banking services!
- Purchase of government securities through UniCredit Bank
- What should I know about client classification related to investments? (MiFID)
- Investment guidelines of the European Securities and Markets Authority (ESMA)
This information is not exhaustive; further details are set out in the document titled Retail List of Conditions UniCredit CONDITIONS FOR THE STABILITY SAVINGS ACCOUNT.
The National Deposit Insurance Fund protects deposits placed within the amount of 100 000 euro. This protection is valid only for deposits and excludes securities.