What would the interest be on 1 million dollars?
To start with the theoretical answer, a $1 million savings account paying 5 percent would earn $50,000 a year.
The nice thing about the way interest compounds is that if you left that interest in the account, it would then earn interest the following year, so that the account would produce $52,500 the following year.
Where can I earn the most interest on my money?
Move your money into a high-yield interest bearing account, and you could earn $100 or more in a year than you would with low rate options.
Join a credit union.
- Switch to a high-interest online savings account.
- Sign up for a high-yield checking account.
- Build a CD ladder.
- Join a credit union.
Can you live off interest?
With careful planning, it is possible to live off the interest from your investments. The more money that you can invest upfront, the more interest you will be able to collect as income.
How much interest do savings accounts pay?
The average savings account has a measly 0.06% APY (annual percentage yield, or interest), and many of the nation’s biggest banks pay rates as low as 0.01%.