Anonymous asked in Business & FinanceInvesting · 1 decade ago

if i put 500,000 dollars in bank right now and lived off interest (hypothetically speaking of course) how much

interest could i expect to get, 3% or 5% ? or more or less?... guarantee money, no risk.

16 Answers

  • 1 decade ago
    Favorite Answer

    since fdic insurance only covers $100,000, you would have to distribute the money over 5 banks, so the interest would be about 5%.

    you could do a little better diversifying over bonds and CD's and perferred stock so lets say 6%. That would give you $30,000/year


    inflation at 4% would cut that down to $15,000 in just 18 years and $7,500 in another 18 years

    depending on your age, you might want to create a diversified asset allocation with it and let that grow while you support yourself.

  • 1 decade ago

    Don't let cash lie idle in current or savings accounts! Split it into various offshore investment options, some index linked to stock market growth and guaranteeing your cash investment return at the end of the term (typically 2-5 years) which can get u up to a 35-80% return on ur investment period depending how the indices ur linked to perform. Put some into funds - the asian market is excellent at the moment especially India n China. BRICs are a good option (Brazil, Russia, India, China) 76% return in 1 year for me on one. Funds based on property r good. Or as ur talking in dollars, I believe the US property market is slumping - buy into it cheap and remember location, location, location will grow again quickly. Be prepared with any investment to take some losses as well as gains. My net gain for this year across a parcel of investments amounted to 21.7%. Some losers n some winners. Don't forget to keep enough in the current or savings account to deal with day-to-day expenses though.

  • 6 years ago

    Banks are for suckers. Average interest yearly from savings is less than 1%. Since the rate of return is less than the rate of inflation, you'd actually be losing money. Invest in low risk stocks instead, or bonds, or both.

  • Anonymous
    5 years ago

    Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies

  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    Put some in a credit union if you can find one that accepts you also put some in the stock market, bonds gold funds and gold bulliopn silver bullion

    In the stock market diversify your options put some in growth some in income some in aggressive growth etc etc.

    Also when you put your money in a credit union put some in a savings account and checking but put most of it in cds and money market accouts or anything that pays higher interest

  • 1 decade ago

    Honestly speaking, i would not advise you to put your money in Bank. I rather you invest in business where you can get back your principle and interest montly.

    Example: Principle amount 150000

    Interest rate 3% PA

    150000 x 3% = 4500 PA

    If you invest for 5 years ---- 4500 x 5 years = 22500

    Total amount --- 150000 + 22500 = 172500

    Monthly return -- Principle + interest for 5 years

    2500 + 375 = 2875

    Invest with me, you will get monthly return till the end of your investment. But with the bank, you can only get back your principle and interest by the end of your investment.

    If you are interested the above, please do not hesitate to contact me, i am in Singapore. Email me.

    Thank you.


  • Anonymous
    1 decade ago

    Banks are paying less than 2% interest on savings. Better to put it in bonds/mutual funds.

  • sarwar
    Lv 4
    3 years ago

    Interest On 500 000

  • Anonymous
    1 decade ago

    My savings bank is currently paying 2.37% taxable or $11,850. If you were a single adult, you would owe $310 in taxes so net 11540.

    You can get tax exempt munis that pay 4%. Or $20,000. No tax, so it stays $20K.

    You might mutual fund that averaged say 8%. $40,000 taxable. $4300 in taxes, leaving you $35,700. (More risk of course.)

  • 1 decade ago

    i dont no, try compound interest rate. a CD. 500,000 grand in a cd locked away at 5.5% for a year goes to 527,000 after a year

Still have questions? Get your answers by asking now.