Inflation is still accelerating, with an annual rate of 9.5 percent in April. Surprisingly, price increases can also affect the cost of services such as a bank account. If you choose well, you can escape the increase in costs – writes Bankmonitor.hu.
Account costs cannot be changed arbitrarily by individual financial institutions: fees can only be changed in cases provided for by law or the business rules of the given financial institution.
What are the items in the policy:
● Changes in tax rules.
● Changing legal environment.
● Changes in the services used by the bank.
● The consumer price index of the previous year, ie the development of inflation.
There may be a number of other factors in bank regulations, but for most financial institutions, inflation appears to be a possible cause of fee changes. The price change is not automatic, only the option is reserved by the banks. For example, OTP Bank automatically adjusts account costs to the previous year’s inflation rate.
“The fixed fees and costs charged under the contract, including the fixed minimum and maximum value of the fees determined as a percentage, shall be based on the previous year’s annual consumer price index (inflation) published by the Central Statistical Office on its website. shall be adjusted automatically (taking into account the mathematical rules for rounding) from the first day of the second month following its publication on the website.
In recent years, this did not seem like a serious burden, although last year the rate of annual price increase was already 5.1 percent. However, in the current environment, this option can already cause significant pain. According to the MNB’s latest published inflation forecast, the inflation rate may be 7.5-9.8 per cent this year and 3.3-5.0 per cent next year.
How can inflation change account costs? Let’s look at an example.
A thousand forints a month doesn’t seem like much to a bank account, it means an annual expenditure of 12 thousand forints. If the financial institution really increases the fees by the rate of inflation – and the price increase is in line with the MNB’s expectations – the account costs may be between HUF 12,900 and HUF 13,100 next year. In two years, the expenses may increase to HUF 13,300 – HUF 13,700. This could result in a 14 percent cost increase in two years.
It doesn’t matter at all how much spending is starting to rise. In addition, there are even completely free bills in Hungary, and zero-forint spending cannot be affected by inflation-priced pricing. So you may want to switch to such a package. Such a decision must take into account the tariff of the bank in question: for which items the financial institution provides a unique, temporary discount. In addition, what may be included in the business rules of the bank holding the account may be relevant: when and how you can reprice certain fees in the account.