How Much Interest Will I Earn On $1 million?

Your great-grandmother Bernice has passed and left you with a nice nest egg, $1 million. Instead of blowing in two days in Vegas, you decide to invest it. So, how much interest will you earn on $1 million?

how to use craigslist, searchtempest like a pro

It is time to do the right thing.

While you may not have had an especially close relationship with your aunt, you were likable enough to earn a spot in her will. Investing your new-found wealth is the right option. So, where do you go from here? The first thing you want to do is figure out how you want to invest your money.

Do you want to use bonds? Would you prefer to diversify your money into various ventures and investments? Answering these questions first will help you figure out how much interest you will earn on $1 million. Bonds, for example, are a possible way to begin your investment. There are two types of bonds you should consider when investing. The first is a high yield bond. If you were to dump your money in a high yield bond you could potentially earn about 4.97% interest on your investment.

Your next option could be a 30-year treasury bond. If you opt out of adjusting your bond for inflation, your rate could be close to 3.33% earning you about $30,000, according to Mint.

Screen Shot 2017-08-02 at 18.08.28

You could invest your million in a 5-year CD

A CD, or a certificate of deposit, is a somewhat safer version of a savings account. Depending on the type of account you have and your bank, you may not have any monthly fees. Most of the time people use a CD to grow their money over a short period of time. Usually, this is anywhere from three months to 5 years. After the end of the investments life, you can withdraw the money or you can put into another CD.

Based on the type of account you have you can possibly earn about 2% interest on $1 million. Which means you will receive about $20,000 per year. To protect your CD from inflation you have to adjust it, which can lower your interest.

How much interest will you earn on $1 million if you spread your money into all of these?

moneybags-30556_640

Luckily, you grandmother was a very smart lady and she made sure to tell you to always spread your money around. With that much money, you should definitely think about depositing your money in a variety of different options. Instead of hoping one of them will work for you, you have a better chance of making a lot more money. Think of it as a gunshot.

It is far easy to hit a target with a buckshot than it is with one bullet. Having multiple streams is your best bet to get as much as you can out of your money. Make sure you are consistently checking on your money as it grows, as well. Some of the methods mentioned could be taken by the company you are working with if you are not vigilant.

Save More Money in 2018

Coins 1523383 1920

Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
Rise and Fall of The Roman Empire

Rise and Fall of The Roman Empire Timeline | Is The US Following It?

Various pundits have tried to compare the fall of the Roman Empire to the apparent weakening of the U.S.’s position as the world’s... more →