Third largest home savings bought fourth, gives 13th month savings instead of state subsidies

E-Money buys Good Finance’s home savings portfolio and invented new structure after withdrawal of state support.
E-Money Housing Savings takes over Good Finance Housing Savings Portfolio portfolio, which covers about 50,000 customers and approximately 64,000 contracts, E-bank said. Clients concerned will be notified 60 days prior to the transfer of any changes to their contracts.

E-Money, the third player in the home savings market after Goodbank and E-bank, the smallest Good Finance, has suspended its sales activities on October 1, 2018. E-Money’s market share with the business is expected to grow from 10 percent to 14 percent under the contract portfolio, with managed deposits increasing from A $ 92 billion to A $ 123 billion, while Good Finance’s portfolio will increase from 157 thousand to 221 thousand.

13th month savings instead of government support

13th month savings instead of government support

E-Money introduced new home savings products: the service provider offers two options and savers can receive an interest bonus instead of state support. Savings are limited to a maximum of 8 years, and customers can choose between a monthly payment of $ 50, $ 30, and $ 40. The new feature of E-Money is that a client can sign up to several contracts without the need for a close relative to set aside more than $ 10,000.

The interest rate bonus for the first mode is 8.33% per annum, which gives the customer approximately one month savings. For the other mode, the bonus increases incrementally from year to year, from an initial 5 percent to 10 percent a year.

The credit is due if the customer saves for at least 6 years

The credit is due if the customer saves for at least 6 years

But E-Money will pay it even if the contract is terminated after the sixth year, but before the original eight-year savings period. The two competitors have also come up with new home savings: first, Goodbank, and then in February this year, E-bank Home Savings Fund introduced its new offers.

True, state-subsidized yields – up to 12 percent – were not even approached by any of the products: Goodbank is up at 2.44 percent at HSE and E-bank at 1.36 percent.

The state is the biggest competitor


On October 16, 2018, the parliament swiftly passed a law to withdraw 30 percent of state subsidies for home savings. In addition, in the spring of 2019, the details of the extended family home improvement discount were gradually scaled back, which will also divert clients from home savings.

In the savings market, even government securities are rivals to home savings, as 3-year Premium Hungarian Government currently pays an annual return of 4.20%, while 5-year-olds pay 4.5%, while the upcoming National Bond pays an average of 4.95%. Over 5 years, which are far more attractive values ​​than new home saving designs.

According to E-bank market information, this year’s players will only reach 30 percent of last year’s volume.