£50 Million is an outrageously large amount of money. That doesn’t mean some people don’t have that amount stacked away. If you’ve arrived on this page, you’re probably trying to do some mental gymnastics to figure out how much you would make in interest alone if you had that amount of money in a savings account.
Well, don’t worry! We have you covered. Let’s take a look at exactly how much you earn in interest with £50 Million in the bank.
How Much Interest Could You Earn On £50 Million Per Year?
At today’s interest rates, you could earn approximately £2,500,000 per year in interest alone. Many savings accounts are now offering 5% rates on a fixed rate term. This means your money will not be accessible during that time.
Interest rates change over time and are currently at the highest point in the past decade. If you had £50 Million in a savings account over the past decade you likely wouldn’t have got any more than 1% interest. This would only kick off £500,000 per year which is significantly less than what you can get today, although half a million per year would be just fine.
Below you can see exactly how much you would collect in interest on £50 million weekly monthly and yearly based on the interest rate.
| £50M Invested At | Weekly | Monthly | Yearly |
|---|---|---|---|
| 1% | £9589 | £41,666 | £500,000 |
| 2% | £19,178 | £83,333 | £1,000,000 |
| 3% | £28,767 | £125,000 | £1,500,000 |
| 4% | £38,356 | £166,666 | £2,000,000 |
| 5% | £47,945 | £208,333 | £2,500,000 |
| 6% | £57,534 | £250,000 | £3,000,000 |
| 7% | £67,123 | £291,666 | £3,500,000 |
Use our interest calculator to calculate interest on any amount.
If you have reached £50 Million in Net Worth you won’t have all of your money in a savings account. Diversifying your assets will be a key strategy in preserving your wealth. This means having your money spread across savings, stocks, property and businesses.
If your living expenses are less than the £2,500,000 per year in interest and you re-invest the excess you can benefit massively from compound interest and significantly increase your yearly interest payment.
Is The Interest Taxed?
Yes, any interest earned on a savings account will be taxed at your current income tax rate. You do get a small personal allowance tax-free however it is only £1,000 for standard rate taxpayers and £500 for higher rate payers. This isn’t worth talking about when you are pulling in over £2,500,000 in interest alone per year.
Should You Invest Or Save £50 Million?
With this amount of money it would be wise to have a diversified portfolio of investments, savings accounts and property. Most savings accounts are only insured up to £85,000 meaning your money is at risk if you keep more than that in there. While it is unlikely anything would happen, it is a non-zero chance and you want to protect yourself from it.
With such a large sum, investing in fairly safe low-cost index funds is a solid strategy. On average the S&P 500 has returned over 10% the past 50 years on average. That means your portfolio would be growing at £5,000,000 per year and compounding over time if left untouched.
Property is another asset many millionaires own. It’s tangible, you can touch it and you can insure it. It also spits off cashflow and appreciates in value over time making a great investment to preserve and grow your wealth.
Can You Live Off The Interest From £50 Million?
If you can’t live off £2.5 Million per year you have a serious spending problem. That’s the type of money that is hard to spend. That comes out at £208,333 per month or £47,945 per week. That’s a serious amount of cash.
Let me know down in the comments what you would purchase if you were pulling in that kind of interest every month.
Best Savings Accounts For Less Than £50 Million
Even if you’re not an extremely wealthy individual, it doesn’t mean you shouldn’t have a high-interest savings account. Currently one of the best options on the market right now is Chip Savings App. They are offering some of the best returns in the industry, are FSCS insured and it’s super easy to use.
Final Thoughts
£50 Million is some serious FU money and will earn a large amount of interest. Ensuring you have your money in safe investments or a savings account earning interest is important. This will help you keep your spending power and hopefully grow your money at a higher rate than inflation. If you’ve made it to £50 Million, congratulations, enjoy it!
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