The government increased transaction fees, banks passed them on to us, and we end up paying the financial transaction taxes. This means that the 3,000–4,000 HUF monthly bank costs we’ve been paying will continue to rise. Can anything be done about this? If so, how? We discussed this and more with Péter Gergely, founder and a financial expert of biztosdontes.hu.
What are the most important details about the government’s financial transaction tax hike in August 2024?
The financial transaction tax is a government levy that banks are required to pay to the state. However, they are not prohibited from passing this cost onto customers, and given the significant burden, they do so. This practice has been in place since 2013 and is unlikely to change since banks are not expected to absorb these costs at the expense of their own profits.
Last August, the government increased the tax by 1.5 times and introduced a new supplementary tax on currency exchanges. These can combine during foreign currency transactions, leading to a tripling of the previous tax rate.
So, we’re talking about two taxes: one increased by 1.5 times in August, and the other introduced in October.
Reports at the end of last year suggested that banks would pass these costs onto consumers this year. How will this be felt?
That’s correct. While businesses have faced these fees since last autumn, consumers only started feeling the impact this January. However, the timeline varies, with most banks implementing the changes between January and February. A couple of small banks haven’t yet passed on the costs but are expected to do so soon.
For consumers, the changes manifest as a 0.15 percentage point increase in transfer fees, capped at 10,000 HUF, and a 0.3 percentage point rise in cash withdrawal fees. The tax on currency exchanges is 0.45 percent, capped at 20,000 HUF.
An additional change tied to the tax increase is the raising of the minimum transaction threshold from 20,000 HUF to 50,000 HUF. Some banks extend this threshold to cover bank fees, making transfers under 50,000 HUF not only tax-free but also fee-free, provided they are initiated online or via mobile apps.
What other significant changes should we know about bank transactions?
Starting January 1, 2025, the legal provision for free cash withdrawals will also apply to post offices. The existing limit of 150,000 HUF per month for up to two transactions remains unchanged, but this service will now include post offices alongside ATMs.
Previous proposals to make banking free up to the average salary were unsuccessful, but there is still hope for an increase in the free cash withdrawal limit, which hasn’t changed since 2014.
Additionally, two entirely free banking services introduced last year remain underutilized. The first is a payment request, where the recipient prepares the transaction, and the payer simply authorizes or ignores it. The second is QR code payments in stores, which allow customers to pay via bank transfer without any fees—an alternative to card payments.
Many of us don’t fully understand when and why our banks charge us. How much does the average customer pay in monthly bank fees?
In Hungary, the average monthly bank cost is 3,000–4,000 HUF. The good news is that this amount, which is set to rise further due to inflation-related fee adjustments, can be reduced.
Start by exploring cost reduction options within your current bank. If that’s not possible, consider reviewing the entire market for better deals, potentially enabling completely free banking. A reliable bank account calculator, such as the one available on BiztosDöntés.hu, can help.
Another option is the basic account, a special EU-regulated bank account available at all banks. For a fixed monthly fee of 1,334 HUF, this account offers numerous free services, including group debits, card purchases, cash deposits up to 100,000 HUF per month, and up to two free ATM or post office withdrawals up to 150,000 HUF per month. It also covers account maintenance and an annual card fee.
However, customers cannot hold another Hungarian bank account or have overdraft access alongside the basic account. Despite these limitations, it’s a cost-effective option for many customers seeking predictable, low fees.
The original Hungarian text by Tamara Pósa can be found here.
Photo: BiztosDöntés.hu
