£100 Million is a lot of money. That’s no secret. However, you may be wondering how much interest you could earn on money like that. It’s honestly mind-blowing.
Britain has 4,180 people worth $100 Million (~£80 Million), so we can estimate that there are likely over 3,000 people worth £100 Million or more. That is a significant chunk of people with a lot of wealth.
While it may seem completely out of reach for us mear mortals some people have amassed this sort of wealth and will be earning huge sums of interest on it. Let’s jump in and take a look at how much interest the mega-rich can earn.
How Much Interest Could You Earn On £100 Million Per Year?
At today’s interest rates, you could earn approximately £6 Million per year in interest alone in a savings account offering 6%. To get 6% you will like to have to save on a fixed rate basis meaning your money will be locked up for a fixed duration.
The problem is, most high street banks will only give you these rates up to £1 Million in deposits. However, if you are wealthy enough to have £100 Million, you will likely be able to access private banks which would offer competitive rates for your vast sum of money.
Of course, interest rates change over time and have been very low for the past 10 years so you wouldn’t always get as much as 6%. The chart below shows how much you could earn on a weekly, monthly, and yearly basis at different interest rates on £100 Million.
| £100M Saved At | Weekly | Monthly | Yearly |
|---|---|---|---|
| 1% | £19,178.07 | £83,333.33 | £1,000,000.00 |
| 2% | £38,356.13 | £166,666.67 | £2,000,000.00 |
| 3% | £57,534.20 | £250,000.00 | £3,000,000.00 |
| 4% | £76,712.27 | £333,333.33 | £4,000,000.00 |
| 5% | £95,890.33 | £416,666.67 | £5,000,000.00 |
| 6% | £115,068.40 | £500,000.00 | £6,000,000.00 |
| 7% | £134,246.47 | £583,333.33 | £7,000,000.00 |
Use our interest calculator to calculate interest on any amount.
People who have £100 Million in wealth are not likely to have it all in a savings account. Their money will be diversified across stocks, bonds, savings, property, precious metals, and likely even countries and currencies.
At that level of wealth, it’s more important to keep it and preserve your wealth rather than seek to aggressively grow it.
If you manage to continue to re-invest some of your £6 Million per year you will also benefit massively from compound interest, giving you more and more interest each year.
Is The Interest Taxed?
Yes, the interest on your savings will be taxed at your current income tax rate. There are some small personal allowances but at £100 Million they’re not worth talking about.
Where To Keep £100 Million Safe
If you have £100 Million, you probably won’t want to keep all of that money in a bank account. That’s a lot of money to have liquid at one time. It’s also only insured up to £85,000.
At this level, you want to be diversified. Property, Stocks and Bonds will probably make up a large portion of the portfolio and will earn a greater return than a savings account would.
You may also want to have a portion of your money in more risky investments such as start-ups, which have the opportunity to produce massively outsized gains.
Can You Live Off The Interest From £100 Million
Yes, you can absolutely live off the interest of £100 Million for a lifetime and generations to come. While you absolutely can, some multi-millionaires still manage to mess it up and go broke. Look at some of the biggest footballers or basketball stars who made 10s of millions and ended up with nothing in the end.
Just because you have £100 million does not mean you are incapable of losing it all. However, it’s pretty hard to mess up. Earning £6 Million per year from interest alone should allow you to live an extremely extravagant lifestyle without ever touching the original £100 Million.
Best Savings Account For Less Than £100 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
£100 Million is an extremely large sum of money and will earn an amazing sum of interest in the right savings accounts or investments. Even with an extravagant lifestyle, you should comfortably be able to live off the interest alone.
Read More From Money Sprout:
