###### Asked in BankingMath and ArithmeticCurrency Conversions

Banking

Math and Arithmetic

Currency Conversions

# How much interest would you make if you had 5 million pounds in the bank?

## Answer

###### Wiki User

###### September 17, 2009 7:45AM

This would definitely depend on the bank, the investment plan
and how long you intend to leave it in the bank. For example, if
you invest it in a safety account at the bank, and agree not to
touch the capital - i.e. just have the interest paid out, say,
every 3 months - you could possibly get as high as 5% apr. that's
250,000 per year.

Of course, you could get higher interest in a high risk investment
plan, or lower interest in a government guaranteed retirement
fund.

However, in my dream of winning the lottery, I am fairly
conservative and prefer to invest it with an annual option of
retaining my investment - so it is not tied up for 10 years if I
want to buy a house. This type of investment usually bring about 5%
in Europe.

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### How much interest on 157 million pounds?

At the current bank of england interest rate 0.5%, £157 million
pounds would pay interest of £785,000 per year, or £65,416.68 per
month.
However if you are a UK tax payer, and if you have £157 million
pounds earning you interest you most certainly will be. You will
have to pay tax on that interest.
It breaks down to (for the average person)
£65,416.68 Gross Income (interest paid to you)
£28,279.01 Tax (you have to pay this)
£1,576.20 National Insurance (you have to pay this)
Leaving you with a total of
£35,561.48 Per Month (This is the amount of
money you get to keep and spend)

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### What does a bank do with a kids money that is deposited?

Irrespective of who deposits the money, the bank would lend it
to loan customers and earn interest income. Based on this income,
the bank would provide a certain interest amount to the
depositors.
Ex: If you deposit $1000 in a bank they would lend it to say me.
I would be paying interest to the bank on a monthly basis as EMI.
let us say I pay back the $1000 in 12 EMI's as $100 then I will pay
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The bank would give you an interest of say 8% per year and hence
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### What is the interest earned?

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### How much interest would 82 million dollars draw per year?

That kind of depends on the rate of interest; that's the main
reason why you read so much about
interest rates in the paper.
If you put your $82 million in a bank that pays 1%, it would
earn $820,000 in the first year.
If you put it in a bank that pays 6%, it would earn $4.92
million in the first year.
If you let Bernie Madoff or Warren Buffet pick the investments
for you, they might find you a product
that pays 15% after fees. Put it there, and your $82 mil would
earn $12.3 mil in the first year.

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