New Limit Takes Effect
As of February 1, 2026, bank customers in Hungary are able to withdraw up to HUF 300,000 (approximately EUR 782) per month free of charge, following a government decision to double the previous limit of HUF 150,000 (approximately EUR 391). This adjustment applies to individuals who receive their salary or pension into a Hungarian bank account and prefer to use cash for their daily expenses.
The free withdrawal remains capped at a maximum of two transactions per month. Any subsequent withdrawals within the same month will incur standard bank charges.
Context and Rationale Behind the Increase
The original free cash withdrawal limit of HUF 150,000 was established in February 2014, at which time it closely corresponded to the average monthly wage in Hungary. However, in the intervening years, average wages have seen a significant increase. The current average net salary is around HUF 525,000, with the median closer to HUF 420,000.
The government's move is largely seen as an effort to reflect these higher incomes and ensure that a larger portion of citizens' earnings can be accessed without fees. For pensioners, whose average monthly pension is approximately HUF 250,000, the new limit means their entire pension can now be withdrawn free of charge. Despite the increase, many workers with higher salaries may still find themselves unable to withdraw their full monthly pay without incurring fees.
Interestingly, data from the central bank indicates that the majority of Hungarians did not utilize the previous HUF 150,000 limit, with average withdrawals remaining well below this threshold. This suggests that the doubled limit may primarily benefit a specific segment of the population that relies heavily on cash.
This policy change also aligns with broader governmental efforts to support cash usage. In April 2025, Hungary amended its constitution to make cash payments a constitutional right. Furthermore, decrees have been issued requiring banks to maintain ATM infrastructure, underscoring the national priority placed on ensuring access to cash, particularly in rural areas.
Banking Sector's Reaction
The decision to increase the free cash withdrawal limit has not been met with universal approval. The Hungarian Banking Association expressed 'firm opposition' to the draft legislation. The association argued that the 'harm caused to society and the economy' by the measure would 'outweigh the benefit to the state'. They highlighted the significant cost to society associated with cash usage, estimated at HUF 400 billion annually. The banking sector views the increase as another way to extract funds from banks, particularly given the existing 0.9% transaction duty on cash withdrawals.
6 Comments
Eugene Alta
Totally backward policy. We should be moving towards a digital economy, not clinging to expensive cash.
Loubianka
It's positive that pensioners can now withdraw their full amount fee-free, but I worry this might slow down the modernization of our financial system and increase overall transaction costs for society.
BuggaBoom
Most people don't even need this much cash. It's an inefficient, populist gesture.
Katchuka
HUF 400 billion annually for cash? That's insane! What a waste of resources.
Loubianka
Increasing the limit acknowledges the rising cost of living, which is fair. However, the banking sector's opposition raises valid points about the financial burden on institutions and the broader economic implications.
Bermudez
This just panders to a minority. It's a huge cost for banks, which will pass it on to consumers.