Comments on: How Much Interest Would $1,000,000 Yield? http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/ Talking about money, without being boring. Sun, 12 Oct 2008 06:00:01 +0000 http://wordpress.org/?v=2.6.2 By: Jah http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-63279 Jah Tue, 02 Sep 2008 13:59:09 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-63279 You will make the biggest mistake to bank with Bank of America. This bank will rip you off big time. Check this link out. http://www.google.com/search?q=Bank+of+America+Class+Action+Lawsuit&sourceid=navclient-ff&ie=UTF-8&rlz=1B3GGGL_enUS274 You will make the biggest mistake to bank with Bank of America.

This bank will rip you off big time. Check this link out.

http://www.google.com/search?q=Bank+of+America+Class+Action+Lawsuit&sourceid=navclient-ff&ie=UTF-8&rlz=1B3GGGL_enUS274

]]> By: Wayne Smith http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-46392 Wayne Smith Tue, 04 Mar 2008 21:53:12 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-46392 In this current situation, Does no one out there find it sad that the bank is making 16% of the money we the people place inside it and we the people only get 2% interest from the bank? Something is truly wrong with this system. In this current situation, Does no one out there find it sad that the bank is making 16% of the money we the people place inside it and we the people only get 2% interest from the bank? Something is truly wrong with this system.

]]> By: DeeOhGee http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-46366 DeeOhGee Tue, 04 Mar 2008 13:26:42 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-46366 Finance Guy is wrong, you do NOT get a "much higher rate" from the banks because you have $1mil. You get preferential treatment along with possibly a slightly higher rate, but not much more. Also, a couple can get $300,000 FDIC protection with one bank by having 3 separate accounts, one in each name and one joint account, each one fully protected. Finance Guy is wrong, you do NOT get a “much higher rate” from the banks because you have $1mil. You get preferential treatment along with possibly a slightly higher rate, but not much more.

Also, a couple can get $300,000 FDIC protection with one bank by having 3 separate accounts, one in each name and one joint account, each one fully protected.

]]> By: Eddie http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-43343 Eddie Sun, 10 Feb 2008 04:29:01 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-43343 Ya know,peaple that rag on the lottery are right up to a point.If you spend alot on the lottery you are a sucka but a little is worth it. I never played 9 yrs ago my co-worker won 10mil 5 yrs ago I got 5 out of 6 #'s on a 15mil pot,so you never know. Ya know,peaple that rag on the lottery are right up to a point.If you spend alot on the lottery you are a sucka but a little is worth it.
I never played 9 yrs ago my co-worker won 10mil 5 yrs ago I got 5 out of 6 #’s on a 15mil pot,so you never know.

]]> By: ryan http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-26570 ryan Wed, 05 Dec 2007 00:33:23 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-26570 probably about 10 million times more likely the bank will fail before you win the lottery. so keep buying those tickets, sucka probably about 10 million times more likely the bank will fail before you win the lottery. so keep buying those tickets, sucka

]]> By: penty http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-367 penty Tue, 10 Apr 2007 06:07:52 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-367 FDIC insurance wouldn't cover any more for multiple savings accounts at the same bank. You would need to spread the 1 mil around to 10 different banks (100,000 at each). FDIC insurance wouldn’t cover any more for multiple savings accounts at the same bank.

You would need to spread the 1 mil around to 10 different banks (100,000 at each).

]]> By: Money Articles and Personal Finance Picks, “I Want To Get A Promotion” Edition » Silicon Valley Blog About Money http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-340 Money Articles and Personal Finance Picks, “I Want To Get A Promotion” Edition » Silicon Valley Blog About Money Sat, 07 Apr 2007 16:40:21 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-340 [...] the reality of taxes and inflation. In the meantime, Poorer Than You ponders how much interest $1,000,000 in savings will return. Let’s say it’s not too [...] [...] the reality of taxes and inflation. In the meantime, Poorer Than You ponders how much interest $1,000,000 in savings will return. Let’s say it’s not too [...]

]]> By: Finance Guy http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-297 Finance Guy Thu, 05 Apr 2007 03:48:50 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-297 At a $1MM, two things happen: 1) You get a much higher interest rate from banks and 2) You qualify as a high networth individual, and there are financial planners who want to talk to you. Essentially, in both cases, you are looking at 8-10% interest rates (the difference being APR vs. APY, plus some risk). In terms of taxes, interest tax is your tax bracket, whereas capital gains taxes (through investments) are set @ 15%, unless you are in the bottom tow income brackets. So the difference between savings vs. investment after tax could be 3% vs. 7%, and that's just one year. Compound that over 10 years (on APY basis), and your investment would have doubled your money, while savings is still at $1.4MM. Also, the $2MM from investments assume you cash out your investments every year. If you waited until the end of 10 years to sell your investments, it could be evenmore. At a $1MM, two things happen:

1) You get a much higher interest rate from banks

and

2) You qualify as a high networth individual, and there are financial planners who want to talk to you.

Essentially, in both cases, you are looking at 8-10% interest rates (the difference being APR vs. APY, plus some risk).

In terms of taxes, interest tax is your tax bracket, whereas capital gains taxes (through investments) are set @ 15%, unless you are in the bottom tow income brackets.

So the difference between savings vs. investment after tax could be 3% vs. 7%, and that’s just one year.

Compound that over 10 years (on APY basis), and your investment would have doubled your money, while savings is still at $1.4MM. Also, the $2MM from investments assume you cash out your investments every year. If you waited until the end of 10 years to sell your investments, it could be evenmore.

]]> By: Stephanie http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-296 Stephanie Thu, 05 Apr 2007 00:58:02 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-296 <b>Jenn,</b> Thanks for the FDIC info! I agree that BoA is unlikely to fall, but then again, I can't predict the future! Anything could happen. <b>Acidspit</b> Yep, like New2TheRatRace said, I was was referring to APY. For the BoA account, for example, the monthly interest rate is 3.88%. <b>New2TheRatRace,</b> Interesting question, bringing taxes into it. Your tax bracket would depend on how much other money you had. But yes, I assume it would be rather high, regardless, so you might want to be a little more aggressive with your million! Jenn,
Thanks for the FDIC info! I agree that BoA is unlikely to fall, but then again, I can’t predict the future! Anything could happen.

Acidspit
Yep, like New2TheRatRace said, I was was referring to APY. For the BoA account, for example, the monthly interest rate is 3.88%.

New2TheRatRace,
Interesting question, bringing taxes into it. Your tax bracket would depend on how much other money you had. But yes, I assume it would be rather high, regardless, so you might want to be a little more aggressive with your million!

]]> By: New2TheRatRace http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-295 New2TheRatRace Wed, 04 Apr 2007 23:09:39 +0000 http://poorerthanyou.com/2007/04/04/how-much-interest-would-1000000-yield/#comment-295 I think for the 5%, she meant APY and not APR. From my understanding, APY incorporates the monthly interest you earn. So, 5% APY means you earn 5% total at the end of the year. My current Wamu savings states its 5% APY and 4.89% interest rate. -New2TheRatRace http://new2theratrace.blogspot.com/ I think for the 5%, she meant APY and not APR. From my understanding, APY incorporates the monthly interest you earn. So, 5% APY means you earn 5% total at the end of the year. My current Wamu savings states its 5% APY and 4.89% interest rate.

-New2TheRatRace
http://new2theratrace.blogspot.com/

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