How Much Interest Would You Earn On £10 Million

James Beattie By James Beattie 6 Min Read

It’s pretty obvious that £10 Million is a lot of money buy it’s not completely unattainable. There are multiple ways you could get there. Dilligently investing over long periods of time, selling your business or maybe even winning the lottery are all ways someone could end up with money like this.

So, what do you do after you have a lot of money? It’s often said, “more money, more problems,” right? In this piece, we’ll explore how much interest you could get if you put £10 Million in a savings account. We’ll also discuss other ways you could use that money to increase your wealth.

How Much Interest Could You Earn On £10 Million Per Year?

At today’s interest rates, you could earn approximately £600,000 per year in interest alone. Many savings accounts are now offering 6% 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 £10 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 £100,000 per year which is significantly less than what you can get today.

The chart below shows how much interest you would receive weekly, monthly and yearly at multiple levels of interest.

£10M Invested AtWeeklyMonthlyYearly
Interest Paid On £10 Million

Use our interest calculator to calculate interest on any amount.

If you’ve reached £10 Million in Net Worth you are not likely to have it all in a savings account. Diversify your assets will be a key strategy in preserving your wealth. This means having your money spread across savings, stocks, property and more.

If your living expenses are less than the £600,000 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 is negligible when you are pulling in over £600,000 in interest alone per year.

Should You Invest Or Save £10 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 nonzero 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 £1 Million 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 £10 Million?

Yes, you should be able to live off the interest from £10 Million. £600,000 should provide anyone in the UK with a luxurious lifestyle if they choose so. It can support a full family without anyone having to work. However, people who land £10 Million in a windfall should be cautious. We see it time and time again, footballers & celebrities blowing their fortunes and going broke. Don’t be that person.

If you can have the discipline to simply live of the interest or investment returns there is no reason you shouldn’t be set for life.

Best Savings Accounts For Less Than £10 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

£10 Million is a significant amount of 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 £10 Million, congratulations, enjoy it!

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I'm passionate about personal finance and making money. Currently trying to FIRE solely by building online assets. Grew my stock portfolio to £86,000 by 26.
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