Would banks give you a higher rate than normal if investing a large amount of money?

Question

If searching on various financial websites in UK you find that the best interest rates for banks building societies are normally between 6 and 6.3% (depending on whether it is a bond or if notice is required) for investments of up to £500,000. If you had a theoretical £1,000,000 would the banks give you a higher rate than at £500,000 or would it be less or would they negotiate different terms?

I did say it was a THEORETICAL £1,000,000!!!!!
As far as I am Sian P you can have a theoretic £1,000,000 of me!

Answer 1

The more you have the higher the rate.
Also the longer you are prepared to invest for the higher the rate.

Answer 2

I would be vary scared of investing that type of money in just one thing. There are basically two types of investments, real assets and currency backed investments. It would pay hugely to know the difference. Real assets do extremely well (compared to paper money) when the economy goes through a period of high inflation. Gold, Silver, Agriculture, House prices, Art, Antiques or fine Wine are all hard assets. Currency backed investments, things like bonds, most shares, unit trusts and savings fail to keep up with inflation when we have periods of high inflation. Which direction are we going? Well central banks around the world are currently creating loads of their fiat backed currencies to pay of their national debts just as they did in the 70's. This time the national debts are higher than they were in the 70's and we don't have the same tools to promote the economy like reducing tax or interest rates (because the economies would collapse, and interest rates can't go below zero). They are printing artificial money to keep the system going. All this leads to high and even hyperinflation. look at youtube for peter schiff, jim rogers, or marc faber videos (they predicted the credit crunch of 2007). do your own research, I'm not a financial adviser. Just remember many "experts" constantly get it wrong and didn't predict the credit crunch.

Answer 3

some do and some don't. If you are going to invest a lot of money, you should talk to the bank manager and negotiate a rate. Usually banks give better rates to people who are going to open up large accounts because banks want those accounts, so the more they give, the more likely they are to get those accounts. Capitalism baby!

Answer 4

If one has a large amount, it is possible to obtain a higher rate of return. I am not familiar with the banking system in the UK. Here in the USA, bank deposits are federally insured up to 100,000. If safety is a concern, one can use 10 banks to have the total of 1,000,000 federally insured. In this case, you would perhaps get a higher rate. Putting the whole amount in one bank would yield more and you would have a increase in risk due to the possibility of default.

Answer 5

most of the advertisments that you see on the television are based on lump sum investments. for example abbey nationals 6.0% is only applied for lump sum payments of 1000.00 this applies to most banks.The more you are investing the more they have to invest, which means they need to give you an attractive interest rate with which to hook you.
word on the grape vine is that barclays are the best for ISA, although they do try to sign you up with various other things which you dont need or have even asked for.
if you are taking an ISA which is stock market based, paying lump sums is usually more beneficial, although obviously more risky.

Answer 6

I think you'd be able to play the banks off against each other to acquire the best rate. Esp if you had a cool million.

Answer 7

Yes they would likely offer higher rates, more so even if you were willing to obligate yourself to leaving it on deposit for an extended length of time.

Answer 8

I think if you had that much dosh they would negotiate with you.

Wish I had a million quid, theoretical or otherwise!

Answer 9

I believe you can negotiate between banks.

Answer 10

Yes

The following increase the rate of return you will earn.

Less flexibility, longer commitment, bigger investment.