Having smaller amounts of interest paid more regularly is better than getting a once-a-year lump sum. The interest due on your headline annual savings interest rate – 4% for example – can be calculated and paid by your bank on a daily, monthly, or annual basis. How often is the interest worked out and paid? We’ll see the difference it makes in a moment. You get interest on the original interest, and then interest on the interest ON the original interest. The longer you leave your money untouched, the more the interest rolls up and grows. Compound interest means you earn interest on your interest.This is due to compound interest, which really gets going over long time periods.

The longer you leave your million pounds untouched, the more money you’ll earn at the end. How long will you wait before withdrawing any money?

Keep your million quid safe and untouched for 30 years though, and even a small 2% difference will have huge consequences. Over one year, this maths is not surprising. A 6% interest rate paid annually will earn you £61,678.A 4% interest rate paid annually will earn you £40,742.The higher the interest rate, the more your £1,000,000 will earn you in a year. Whether you’re paid interest daily, monthly, or annually.How long you save it for without withdrawing any money.Besides the hassle of opening so many accounts, you’ll have to accept it’s impossible to get the best interest rate with all of them.Īnd that’s important, because the interest rate is the most important variable that determines how much you will earn on your million pounds. Each account should ideally have no more than the guaranteed £85,000 compensation scheme limit in the UK.Īdmittedly that’s going to mean you’ll need almost a dozen bank accounts to be entirely safe. How much interest will I earn on one million pounds in cash?įirst things first: stop looking for the single best savings account for your million pounds.Īnyone who remembers the bank runs of 2007 during the financial crisis knows it’s better to have multiple savings accounts. The question is how much interest do you earn on your million pounds? (Or you wish you did and you’re daydreaming…) Married someone who owned a large terraced house then you got divorced.Sold a small terraced house in central London.Bought into and then (crucially) traded out of Bitcoin.Congratulations, you’re a millionaire, and you found this site by asking Google: How much interest do you earn on a million pounds?

How much daily interest on 1 million