If I put $100,000 in a savings account, can I get $2,000 every month?

Question

I saw that savings account or paypal usually say "Currently Earning: 5.03%* " so that means that if I put $100,000 I can get $5,000 every month? Please help. I want to know how much I need to have in my savings account in order to get around $2,000 every month. thanks

Answer 1

NO!

First, it is 5000 per year not per month and that is if you do not touch it and let it compound

Answer 2

If you need $2000 in residual income a month, you will need about $500,000 in an account that makes 5.03% interest per year. In fact, accounts that give over 5% interest per annum is already extremely rare.

If you want a reliable investment that requires much lesser than $500,000 to start and return a reliable $2000 a month, there are 2 avenues :

1. The easy way : Buy a reliable investment property that returns $2000 after installments. The downpayment on a property like this that returns a 6% yield that equivalates to $2000 per month is about only a $120,000. (Based on a property worth $400,000 on a 30% downpayment. Negotiations can usually bring down he downpayment further.) If you can find higher yielding properties at a better price, all the better it is.

2. The tougher way : Do long term option strategies on the local index. A covered call strategy on the QQQQ (nasdaq) , provided it is properly executed, easily returns abut 5% residual income a month.


There are a lot more research you need to do pertaining to each of these methods in order to make them work. Yes, who says money making is easy? :) Making more and more money with less and less risk and less and less effort takes more and more financial education. You need to start reading good investment books like some which i recommend at http://www.bestoptiontradingbooks.com

Sufficient investment knowledge has allowed me to build a residual income in excess of US$20,000 a month within just a couple of years to retire at 28 years old. Read about how I did it at http://www.mastersoequity.com


I have only outlined 2 of the thousands of residual income possibilities that are out there to make. A residual income of $2000 a month is so simple and can even be achieved without any money to start if you are really poor. It all starts with having more knowledge.

Have fun.




http://www.mastersoequity.com



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Answer 3

Hello,

I completely agree with wanting to invest your money. Afterall, what's the point of making money if you can't make more money with your money (got that?)? Anyway, I've tried all different investments from stocks and bonds to IRA's, 401k's, and real estate. I'm really a big fan of diversification.

However, the only investment I've really been happy with so far is real estate. Over the past 5 years, I've bought 3 different properties (all have tenants, and I'm making more than the mortgage payments on 2 properties).

The 3rd property I got was using Carleton Sheets no money down methodology (he's a GURU in real estate, and yes, his methods do work!). You can actually buy a property for absolutely nothing down (NO MONEY FROM YOUR OWN POCKET). I payed over $500 for his course 3 years ago, and I just saw it online for $9.95!!!! This is a steal at $9.95 (I'm actually going to buy it for my friends for Christmas). It was featured on TV, so I got the website from there.

Before you invest in anything, I highly suggest the Carleton sheets course. http://www.alllsite.info/real-estate.php

Answer 4

5.03% might be annual...which means you might get about $400 per month. That means, you need to save about $500,000 to get about $2000 every month.

Answer 5

thats probably not a savings account but a long term note. 6 months or more to get that rate. plus you dont get that interest monthly. most average savings account has a VERY small interest rate.

Answer 6

I THINK YOU NEED TO CHECK WITH THE BANK. tHE SAVINGS ACCOUNT IS PROBABLY PAYING YOU 5.03% PER YEAR NOT PER MONTH. PER MONTH WOULD BE 60% PER YEAR.