The self-help and health fund is practically a box in which, if we diligently put money aside, we will receive a reward for our frugality. Yet few people take advantage of its potential, even though
We can get HUF 150,000 back after our payments.
With the help of experts, we found out exactly what these cash savings are good for. We can spend the money collected in the bank account (in the “pocket”) on specific things. For almost all of our health-related expenses and expenses that typically should be saved for: having a child, a home loan, unexpected unemployment, but the list is still very long.
It is a sin not to take advantage of the tax credit
The biggest advantage of cash savings is the tax credit: we can use a 20 percent tax refund after our payments, up to a maximum of HUF 150,000 per year. This amount also increases our cash account, which we can spend on various services. We asked Grantis experts to list them. The health fund card is accepted:
- in pharmacies,
- in optics,
- in medical aid shops,
- in drugstores,
- medical shoes,
- glasses,
- contact lens,
- medical mattress,
- blood pressure monitor,
- medicinal water,
- and you can even buy special foods from it, such as gluten-free products and vitamins with an OGYI number.
Families with small children can especially benefit from the cash register when buying baby and baby care products, such as baby bottles, formula, diapers, baby monitors, baby scales, baby baths, baby shampoo, baby oil, sprinkling powder, body lotion – Grantis experts pointed out to our magazine.
Private orders can also be used to pay for examinations and treatments through the health fund.
If we calculate an average fee of HUF 30,000, we can get back the price of five private orders in a year from the tax credit. In the same way, physical therapy, therapeutic massage, physiotherapy or even psychological counseling and orthodontics can be financed from the treasury account.
Dental services are not usually reimbursed even by health insurances. This is the only way that major interventions, such as implants and crowns, can be financed at a discount
– draw attention to the experts. They noted that the 20 percent is, in two cases, rather 30 percent at the funds: few people know, but if you spend on preventive screening tests, you get an extra 10 percent tax credit (but the maximum amount is still HUF 150,000). Moreover, there is also a way to tie up the unused money, in which case the fund invests the money in safe assets (typically government securities). In case of a 2-year commitment, we can get another 10 percent tax credit. Those who are really food-obsessed also commit to the tax refund, and with that they achieve not only a return, but also an additional tax refund.
Cashier services can usually be used by close relatives, such as parents, siblings, children, spouses, and partners.
Support of up to 2 million for childbirth, more than a quarter of a million for schooling
At self-help funds, you can typically apply for a birth service of HUF 1 million per child, which can also be claimed in case of adoption, for example, at IZYS this amount is HUF 2 million. The service works in such a way that we can use our savings previously deposited in our bank account for this purpose, the experts of the independent broker indicated.
All funds provide childcare support, typically in addition to the child care fee (CSED), child care fee (GYED) and adoption fee (ÖFD), up to the extent of the previous net income. In the case of child care support (GYESE) and child-rearing support (GYET), the benefit can even be doubled during the period of payment.
Enrollment support can make the start of the school year easier for primary and secondary school students, but it can also be used by kindergarten students and university students up to the age of 25.
The support can cover the costs of buying textbooks, teaching materials, shoes and sportswear, and can also be useful for paying higher education tuition, dormitory or sublet. The maximum amount per child is the amount of the monthly minimum wage valid on the first day of the current year, which this year is HUF 266,800. The use of the support will soon become relevant, the next period when it can be used is from August 15 this year to June 30 next year.
Source: Grantis collection
Image: Economx.hu
According to the experts, many people could benefit from the fact that the repayment of the home loan can be partly financed, since the 20 percent tax credit applies even after that. And there are funds that also support the financing of utility bills, such as electricity, gas, and drinking water, in both cases up to 15 percent of the current minimum wage, i.e. HUF 40,020, based on need. What’s more, there is a fund that provides assistance up to HUF 250,000 in the event of an apartment fire, just like insurance.
The self-help fund can also be useful in case of unemployment. The job search allowance or pension can be supplemented up to the amount on which the benefit is based, i.e. the amount of the previous wage,
and the money is transferred by the 5th of every month until the savings are reached, so the loss of income can be mitigated.
At several funds, it is possible to supplement the sick pay, disability pension, miner’s pension, and care fee, to the same extent as the benefit or compared to the previous salary.
The amount of elderly care support can be applied for up to HUF 28,500.
In the case of a close relative, there is also support for funeral expenses, as long as the expenses can be verified with an invoice.
Funds also offer health insurance and screening packages
Cash registers are going through a fairly active period in terms of business development, almost everywhere there is something extra beyond the basic services. For example
health insurance for a few hundred forints can be taken out at most funds, between 85 and 395 forints per month.
These health insurances cover high-value diagnostic tests, same-day surgery and also provide coverage for critical illnesses, some of them help with the organization of care, and also provide a medical call center.
Complex screening packages are also available, which include the most important screening tests, such as lab, ultrasound, EKG, some packages also include gynecology, urology and skin cancer screening – it was highlighted in a previous in analysis the experts.
There is also a fund that makes the now especially popular microbiome-related, but very expensive tests more financially accessible.
Because of the extras, according to the experts, it is worth signing up with several funds and sharing the savings.
Costs, opening and management
The process of opening a health fund account is quick, it can be started online in up to 15 minutes by entering your personal data and signing the entry declaration, which can already be done digitally at many funds. Account management is also easy and secure.
Funds also have costs, which is good to know: more than 94 percent of the amount paid will typically be saved, the rest goes to operating and liquidity reserves
Grantis experts indicated. Since the treasury costs evolve in bands, if we pay a larger amount in a given year, we can come out cheaper.
The membership fee of the funds is around HUF 3-6 thousand per month. It is not obligatory to pay from month to month, but the operating costs are constantly deducted from the fund, if there is no payment, then from the savings.
Maintaining a cash account is not complicated at all, you get practically the same interface as a bank account. The most common administration will be the submission of invoices for the services used to the cashier’s office, for which we ask for payment.
At the end of last year, there were 1,124,000 members in the health and self-help fund sector, which also exceeds the number of voluntary pension fund members – read in the MNB report. The number of new entrants, 82,128 people, is a third more than a year earlier.
The amount of tax credits used in 2023 was HUF 14.3 billion in total, which represents a 51.5 percent increase compared to the year before last.
Source: www.economx.hu
