How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Michael Your Own Question
Michael, Stock Trader - Consultant
Category: Finance
Satisfied Customers: 15
Experience:  Many years experience dealing with securities.
Type Your Finance Question Here...
Michael is online now
A new question is answered every 9 seconds

if i have one million dollars in savings how much interest

This answer was rated:

If I have one million dollars in savings, how much interest can I earn on it per year?
If you think you might withdraw the money before one year's time, either find a CD with no penalties, or stay liquid and put it into savings. The current interest rates for savings are laughably. Unless you know a secret...

A large, established, well respected bank offers savings accounts which earn 3.75%. No strings attached, at all. They can do this because their business is mostly done through the Internet, which saves them millions in overhead.

Some CDs pay as much as 4.50% for one year. The drawback is, there's usually a monetary penalty for early withdrawal.

A ballpark figure of what $1 million would earn in a savings account or CD in one year?

Around $20,000 (2% interest), or around $38,000 (3.75% interest), depending on the bank and its methods.

There are also other ways to invest, such as mutual funds (large range of interest rates).

A seasoned financial planner would help you find the product with the best return.

You should definitely check out these helpful links:
A generous 3.75% interest rate on a savings account.

Banx provides Real-Time bank rates for each of the 50 states

Bank Rate
EXCELLENT free help website
Michael and other Finance Specialists are ready to help you