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Major change in banking in Hungary: You can now withdraw twice as much cash for free!
From this week, bank customers in Hungary can take out significantly more cash from ATMs without paying fees, after the government doubled the monthly free withdrawal limit.
As of 1 February, the long-standing HUF 150,000 (EUR 391) ceiling has been raised to HUF 300,000 (EUR 782) per month, Bank360 reported on Sunday. The amount can still be withdrawn in a maximum of two transactions, meaning a third visit to the ATM could trigger bank charges.
The rule applies to anyone who receives their salary or pension into a Hungarian bank account but prefers to use cash for everyday spending.
A 12-year-old scheme gets an update
Hungary’s free cash withdrawal scheme was first introduced in February 2014 under the banner of cutting “financial utility costs”. At the time, the HUF 150,000 cap roughly matched the average monthly wage.
However, wages have risen sharply since then. Today, the average net salary is around HUF 525,000 (EUR 1,370), while the median is closer to HUF 420,000 (EUR 1,095). Even with the higher HUF 300,000 allowance, many workers still cannot withdraw their full monthly pay without paying fees.
However, for pensioners, the current average pension of around HUF 250,000 (EUR 652) now fits entirely within the new free limit.
Most people don’t even use the old limit
Interestingly, central bank data suggests that most Hungarians never came close to the previous cap, Mfor writes.
Between 2014 and 2019, customers made roughly one ATM withdrawal per month per card. By autumn 2025, this figure had dropped to just 0.84 withdrawals monthly, or about ten visits per year.
Although the average amount withdrawn has doubled over the years due to inflation and rising incomes (from roughly HUF 56,500 in 2014 to HUF 113,500 today), it still remains well below even the old HUF 150,000 threshold.
In other words, the increase may benefit only a relatively small group of heavy cash users.
It’s not automatic! You must apply
The free withdrawals do not apply automatically.
Customers must submit a declaration to their bank specifying which account they want to use for the benefit. The option can only be linked to one account per person.
Timing also matters:
- declarations submitted before the 20th of a month take effect from the following month
- those submitted later only become valid from the second month after
Anyone switching banks must file a new declaration, as the benefit does not transfer automatically.
Costly for banks, profitable for the state
While customers pay nothing, banks shoulder high costs.
Card-issuing banks must pay a 0.9% transaction levy to the state. On a HUF 300,000 withdrawal, this means HUF 2,700 goes directly to the government. Running and stocking ATMs is also expensive, with each machine reportedly costing around HUF 10 million per year to operate.
Critics argue that the policy encourages cash use at a time when digital payments are rapidly expanding.
Since the levy was introduced more than a decade ago, the value of card purchases has grown more than tenfold, while cash withdrawals have increased by only around 65%. During the Covid pandemic, card payments overtook cash withdrawals for the first time – and the gap has continued to widen.
Cash still king, but losing ground
Despite government efforts to promote cash, many Hungarians are increasingly opting for cards and contactless payments instead of queuing at ATMs.
The higher limit may offer extra flexibility for those who rely on banknotes, but for most customers, it is likely to remain more of a safety net than a necessity.
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