TBSZ (Long-Term Investment Account) is a fixed-term savings program through which you can make tax benefits, choose from a variety of investment opportunities and maximize your return expectations for our risk-tolerance capability.
TBSZ (Long-Term Investment Account) is one of the most popular investment objectives of Hungarians.
How does the TBSZ account work?
By opening the TBSZ account, we undertake to deposit our money for T + 5, but at least T + 3 for the given financial institution. Paying for the account is possible in the calendar year of the account opening (T), which is called TBSZ year of collection.
During this period, you can make payments several times, increasing the value of your account. If we want to get our money after T + 3, we can do it with a reduced tax (10% interest tax).
Those who have access to their money on the TBSZ account after 5 years have free access to their savings.
Periods of managing a long-term investment
Collection period – collection year
The period from the conclusion of the contract to the end of the calendar year in which, at any time, any amount may be placed on the TAB.
No further payments to this particular TBSZ account are possible. The amount of the savings account may be increased by the amount of interest earned on the investment. During the subscription period, a “billed account” (transfer, cash withdrawal) will immediately terminate the TBSZ contract.
When can I withdraw money from the TBSZ account?
The classic savings period is 5 years when we can access our savings free of tax. However, unexpected life situations may occur when we need to break the bill sooner.
Before 3 years of savings, cash withdrawal from the TBSZ account
Of course, we can access our money here at any time. In this case, however, we have to pay the (currently) 15% interest rate on our total interest income.
You can not withdraw a subtotal so you need to move the total value of the account.
- the TBSZ account is terminated
After 3 years, we have access to a part of our savings on a single occasion with the payment of a reduced interest on the TBSZ account.
The main rule is that after a partial withdrawal, you must have a minimum of $ 25,000 in your account. Then we have to wait for 5 years with the amount remaining on the invoice to get it free of tax.
Finally, you have to wait another two years and the total amount may be free of interest tax. Here you can decide if you are going to withdraw money from your account or continue with it and start a new 5-year cycle. If you make a statement about it in time, you do not have to wait for the next year, from January 1st you can start your 5-year cycle.
Tax on TBSZ account
By the end of the third year after the opening of the TBSZ account (T + 3) we will pay 15% tax on our account after the exception. This means that the original amount can still be tax-free, we only have to pay the tax on our interest income.
By 15 February of the year following the tax year in which the income came into existence, the long-term investment, the date of the long-term deposit and the date of termination or interruption of the term of the deposit shall be certified by the financial institution to the TBS owner.
Can I extend my TBSZ account?
At the end of the T + 5 year, we have the opportunity to extend the bill. We need to pay attention to the need for our extension before the five-year subscription period actually expires.
We have the possibility to withdraw a partial amount from the TBSZ account and to extend the subtotal (min 25,000 HUF). This is subject to an amendment coming into force on January 01, 2017.