In response to ongoing negotiations between the Ministry of Economic Development and the Banking Association, OTP Bank has committed to reducing its banking costs for residential customers by nearly two billion forints.

This decision comes amid rising concerns over inflation and increasing costs of living.

The measures, which are aimed at alleviating financial pressure on citizens, also include the extension of certain promotional offers worth several billion forints.

The decision to cut bank fees follows a period in which several banks indicated plans to raise fees associated with residential account management in line with the previous year's inflation rate, as the financial transaction duty is set to rise by 50%.

According to information from the Central Statistical Office, the annual inflation rate was reported at 3.7% last year, allowing banks the potential to adjust their fees correspondingly.

Minister of Economic Development, Márton Nagy, had previously set a timeframe of one to two weeks for banks to reduce account maintenance fees.

He reiterated the government’s position that any increase in residential banking fees was unacceptable, which appears to have prompted a reconsideration among banking institutions.

In its official announcement, OTP Bank stated it analyzed how best to contribute to curbing inflation that exceeds prior expectations.

The discussions between the Ministry and representatives of the banking sector led to OTP Bank agreeing to offset the legally permissible increase in banking fees on residential accounts, bank cards, and online banking services, which will take effect on March 1, 2025.

As part of this commitment, OTP Bank plans to extend promotional discounts worth several billion forints and to reduce banking fees by nearly two billion forints for residential customers between May 1, 2025, and April 30, 2026. The bank clarified that this amount corresponds to the impact of the legislatively permitted inflation fee increase, thereby allowing OTP Bank to revert to the early 2025 fee schedules at the request of the Minister of Economic Development.

Specifically, this means that the annual fee for physically issued residential forint debit cards will be reduced by 700 forints for all customers during the designated period, unless alternative legal provisions come into effect.

Additionally, residential customers without a debit card will receive a one-time credit of equivalent value in June 2025, under the same conditions.

This promotion, however, does not affect OTP Junior cardholders, as account management and card issuance remain free of charge for them.

Further commitments from OTP Bank include an assurance not to implement any fee increases for residential bank accounts and debit cards due to operational or inflationary reasons until June 30, 2026.