How Much Interest on 100 Million Pounds Could I Make?

The quick answer is, you could make as high £4.5 million a year in interest alone if you put the money in a fixed savings account. This works out to £375k a month, or £86k a week, or £12k a day.

These figures are based on a 4.5% interest rate that is offered on some fixed savings accounts. The interest rates have recently declined, having hit a peak of around 6% just a few months ago. Rates fluctuate continuously, so its best to shop around for the highest rates you can get.

Obviously, the downside of putting your money in a fixed savings account is that your money – both the principal and interest income – are locked in, so you can’t have access to it.

Luckily, due to the inverted yield curve situation currently in play, you can lock in a high interest rate on shorter term fixed deposits and bonds, so it’s worth checking around to see what other options are available. Unlike normal times, right now it doesn’t pay to lock in your money for a longer period of time.

If you wanted to access that money on an on-demand basis, your best bet would be to be deposit it in an account which lets you have access to that money any time you want. The obvious downside to such accounts is that the interest rate on offer is lower. For example, Chip’s Instant Savings account, pays out as much 4.84% in interest on your money. This works out to £4.84 million of just interest income per year!

Try out the handy little calculator below to help you determine how much interest you can generate.

Interest Income Calculator – UK

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Can I live for the rest of my life on the interest of £100 million?

I honestly believe that you should have no issues living off the interest on your £100 million in the bank for a very long time. As I mentioned above, if you go with Chip, at a minimum you will generate £4.8M a year in pre-tax interest. This works out to £400k a month, nearly £93k a week, or over £13k each day! While of course these are pre-tax figures, it would still be difficult to run out of this much money!

You have achieved the much desired status that we all want: financially free! Congratulations! Now here is where things get really interesting – if you stick to only using the interest generated by that pot of money, in theory, that original pot of money never goes away. Not only you, but entire generations that come after you could easily live off that money without degrading the pot!

Of course inflation would eat away at the purchasing power of the 100 million pounds over time, so the best option would be to take some of that money and invest in areas that generate higher rates of return. There are a variety of opportunities – like real estate, the stock market, or even buying businesses outright – which could help you maintain the value of that money over many years to come!

With a £100 million in the bank, you’re in a league of your own. If you play your cards right and get the right financial advice, you could even be on your way to becoming a billionaire soon!

Want to Learn More?

If you are really curious about how interest rates work, who sets interest rates in the UK, we’ve got an in-depth article that will bring you up to speed on this. It’s a fascinating topic! If the topic of investing is of great interest to you, be sure to check out my article covering the best books for beginner investors. It’s a great place to get started on your investing journey.

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