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Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 decade ago

How much money do I need in the bank to live off the interest if I only need $700 a month to pay bills?

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  • Chris
    Lv 5
    1 decade ago
    Favorite Answer

    that all depends on interest rates but I am sure the amount would be in the billions.

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  • Gary
    Lv 5
    1 decade ago

    If you went to an on-line bank and just got a regular savings account that pays 5% APR you would need at least $168,000 in it. You would need two accounts because FDIC insured accounts pay up to $100,000. Here is how I got the $168,000. You could live on $700 per month so 700 x 12 months would be $8,400. Take 8400 and divide it by .05 (% of interest) and you would get $168,000.

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  • 1 decade ago

    If u need $700 a month, i know some good interest rates are 5%. That is an annual rate. 700x 12 = 15400 (what u need for a year) So u would need ... 308,000. Ya, i've thought about this too, wish i had more money to do this, though i'd still work somewhere. Anyway, don't always focus on money bud. There are more important things in life, god bless

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  • 1 decade ago

    Depends on where you put your money. I would say at least 500,000.00 in order to live on it reasonably in high rate savings, money market or CD.

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