how much cash would you need in the bank to earn £500 per week interest?

Question

if possible give the best type of account and what the interest rates would be etc... thanks. i heard that a million earns £8000 a week is this true?

Answer 1

HSBC will pay 4.89% "gross" i.e. before Tax. HSBC will deduct 22% Tax before they pay Interest, so you get 78% of 4.89% = 3.8142%

Assuming you have no other income, £500 a week =£26,000 a year = standard rate Tax band, so you will not have to pay any extra Tax.

To receive £500 a week you will need savings of £681,663.21p

NB. £1,000,000 earns £733.46p a week or approx £800 a week (amazing how often people exaggerate to make things sound better, but how '£800' can become '£8,000' is beyond me :-) )

Answer 2

thats easy, given that the average savings account gives about 5 percent per year return, the maths is ...
500 pounds * 52 weeks = 26000 pounds per year
100 divided by 5 percent = 20 (this is your multiplier)
26000 * 20 = 520000
just over half a million in the bank will give you 500 quid a week.
or in other words 5 percent of 520000 pounds = 26000 pounds, which you can take 52 equal ammounts of at 500 pounds each

Answer 3

about £500,000 if you got 5% interest,so a milion would get you £1000 a week at this interest rate.........

Answer 4

i just wanted to know too but no one has answered your question!!! then again it is Britain and we all earn peanuts!!!!

Answer 5

more than i have!!!!