Asked in BankingMath and ArithmeticCurrency Conversions
How much interest would you make if you had 5 million pounds in the bank?
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.