How Much Interest Can You Earn on $1 Million? Understanding Your Options

Discover how much interest you can earn from $1 million and explore your best investment options.

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Interest on $1 million depends largely on the rate offered by the bank or investment. For example, a 3% annual return can yield about $30,000 yearly. Choose high-yield savings accounts or certificates of deposit for safer options, or explore stocks and bonds for potentially higher returns with more risk.**

FAQs & Answers

  1. What is the average interest rate on savings accounts? The average interest rate on savings accounts can vary, but it often ranges from 0.01% to 1%, with high-yield accounts offering up to 3%.
  2. How do I calculate interest earned on my investment? To calculate interest, use the formula: Interest = Principal × Rate × Time. For example, for $1 million at a 3% rate over one year, it would be $30,000.
  3. Are stocks a safer investment than bonds? Generally, bonds are considered safer than stocks, as they provide fixed income, while stocks can offer higher returns with greater risk.
  4. What are certificates of deposit (CDs)? Certificates of Deposit (CDs) are time deposits offered by banks that typically have higher interest rates than regular savings accounts.