How much interest would I earn with £150k in the bank?

Question

I am thinking of putting £150,000 that I recently received into my bank account to gain interest, as I want to rent a nice property rather than buy. For example if someone had a balance of £150,000 in their regular current account at the bank, what kind of weekly/monthly interest could you expect to earn? Thanks.

Answer 1

it depends on the account you pay it in and what the interest rate is it varies from bank to bank..

Answer 2

Most current accounts offer 0.1% interest. Others offer upto 6% if you switch providers and pay in at least £1000 per month. You would be better with a savings account that pays a monthly income into your current account. There are a few 1 year bonds that do it, as well as a number of savings accounts offering around 5%(gross) on balances like this. If you put it in an account paying 4% (net) you would make £6000 in a year. In a current accout you would get £150!!!!

Answer 3

I presume you live in Great Britain. The best way to do this is to do an online search of the banks in your area. In the U.S., banks post details of their various accounts on their websites so prospective customers can choose from their various products. They usually list their interest rates for different accounts on them. I have to research this all the time because I invest heavily in CD's (Certificates of Deposit), which are time accounts whose returns are guaranteed by the federal government here, and which almost always pay higher returns than regular bank accounts. I am constantly searching the banks in my area for the best rates. I have found that a particular institution here seems to offer the best rates among landed banks for CD's. There are also online banks which offer good rates. Check on some of them also (do an online search to find them). In any case, I strongly recommend you go with CD's, not a regular bank account. That, of course, depends on how soon you want to use the money and how patient you are.

After you have found some banks which offer good rates, decide how long you want to invest the money. Sometimes long-term instruments offer higher interest rates, but often financial institutions offer significantly higher promotional rates on short-term instruments in order to attract business. I am constantly picking up short terms (6 - 12 months) in order not to tie our money up so that we can take advantage of even better deals down the road. From my own experience, I have managed to get our own interest returns up to more than $52 per day, or slightly over $364 dollars per week. That works out to about $19,000 per year, which is not bad when you consider we still have almost 10 years to go to retirement. And what's even better is that this amount will continue to increase from year to year due to compounding.

You can figure out what your daily returns should be on your account by simply using this formula:

I = A(i/365), where I is the interest accrued per day, A is the amount invested, and i is the interest rate paid on the account. This may vary slightly depending on what sort of compounding scheme the particular bank uses.

If you invested your £150k at 5% compounded daily, then the amount of daily return you could expect would be:

I = £150,000(0.05/365)
I = £20.55 per day.

For the entire year, your return would be:

I = A(1 + i/365)^365 - A
I = A(1 + 0.05/365)^365 - A
I = A[(1 + 0.05/365)^365 - 1]
I = £150,000[(1 + 0.05/365)^365 - 1]
I = £150,000[(1.051267) - 1]
I = £7690.05 per year

I will leave it up to you to do whatever conversions are necessary.

Answer 4

interest earn 150k bank

Answer 5

its so little that it pretty much matches inflation

in the bank, think of it as just sitting there

Answer 6

If left un-touched probaly about £7,500 a year.