What Is The Interest on $100 Million? (And What Should You Do With It?)

The quick answer—You could earn $5 million per year in pre-tax interest income by simply investing in a Certificate of Deposit (CD) at 5% interest. By investing in the stock market, you could earn upwards of $10 million per year if it grew at 10% interest.

Here are some other examples of interest payouts on $100 million per year:

• With 1% interest, you’d make $1 million a year. (That’s just for the money to sit there and collect.)

• At 3% interest, you’d earn $3 million per year.

• At the annual rate of return of 8%, that’s $8,000,000 a year.

So the yearly interest on $100,000,000 could be anywhere in between $1 million and $8 million, depending on how well you invest your money.

The quick answer—You could earn $416,667 per month in pre-tax interest income with a Certificate of Deposit (CD) at 5% interest. By investing in the stock market and yielding 10%, you could earn $833,333 per month.

• With 1% interest: $83,333 per month.

• At 3% interest: $250,000 a month.

• At 8% interest: $666,667 per month.

If you invested in a CD (Certificate of Deposit) and earned 5% interest on $100 million dollars, you would earn a daily pre-tax amount of $13,699 per day.

If you invested $100 million with the interest rates below, here’s how much you'd earn each day:

• 1% interest: $2,740 per day.

• 3% interest: $8,219 a day.

• 8% interest: $21,918 per day.

So if you had $100,000,000, you could earn more in a day than some people do in an entire year.

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If you had 100 million dollars, it would be wise to invest it and live off the interest. Here are some simple ideas to grow your money:

• Invest in a Certificate of Deposit at 5%.

• Invest in real estate, which can earn 10% or more.

• Become an angel investor and invest in businesses.

Earn 5% and you'll bring in $5 million a year. Invest in real estate at 10% and earn $10 million. (Plus, real estate is a fantastic tax shelter.) Invest in the right business and you could become a billionaire.

What can you do with $100 million?

• Buy a $100,000+ watch that takes6 months to make.

• Purchase a private top-of-the-line jet for 44 million.

• Buy a Michigan mansion (in my hometown) for$10 million or less.

• You could donate$25 million to end homelessness in Texas.

And even with those moderately insane purchases, you'd still have $20,000,000 left. There's so much that could be done with 100 million dollars. It's not quite as insane as having a billion dollars—but it's still quite the hefty amount to have!

Based on the above, you can see buying even the most beautiful audacious thing still doesn’t cost a hundred million dollars. So what would it take to clear away all that cash? How long would it take to spend $100 million?

Let’s say you decided to spend $1,000 a day for the rest of your life. How long could you live on 100 million dollars before you ran out of money?

By spending $1,000 a day, you would go through $365,000 a year. Even if you earned no interest on your $100 million and spent $1,000 every single day of your life, you could still live for 270 years on a hundred million dollars.

In other words, you’d never run out of money. That’s pretty insane.

As you may have guessed, no one really needs $100,000,000 to live a happy life. Even people with just one hundredth of that (that's one million dollars) lead very happy lives in retirement.

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As Einstein supposedly once said, “compounding interest is the eighth wonder of the world”.

What if you consistently invested a fair amount of money? Then how long would it take to make 100 million dollars?

• Let’s say you could invest $2,000 a month starting at age 16.

• And let’s just say that you average a 10% return on your investments every year.

If you invested $2,000 every single month, never spent a dime, and always earned 10% a year, you'd be worth $100 million on your 77th birthday.

Around90% of Jeff Bezos’s fortune is in Amazon stock holdings. And, as we already stated above, the same goes for most of America’s wealthiest individuals.

But why? The answer is quite simple.

If they cashed in on their holdings, that would make their wealth “realized”—and they'd be taxed on their gains. But if they just leave their wealth in the value of their business, they aren’t personally taxed on those gains.

So if they don’t need the money (and, as we established before, no one really needs 100 million dollars), then why take it out and pay taxes on it? You may as well just be a well-known centi-millionaire and enjoy the fame while it lasts.

The yearly interest on $2 million would be $160,000 a year (assuming an 8% earnings rate). That could easily be money to live on year after year.

Now, with $10 million, you obviously won’t earn as much in interest as you would with $100 million.

The average 8% annual interest on 10 million dollars would result in about $800,000 a year. That’s still more than what many people will save in a lifetime though—so it could be worse.

Experts note that you should have at least four bank accounts These will be both for budgeting, saving, and building wealth through investing.

How would this work for the average person?

For one, you’d need two different checking accounts:

• One would be for your regular bills—including your mortgage or rent, utilities, and other bills you can’t escape from (like groceries).

• The second one would be for spending money or personal money. So this is money you can spend guilt-free.

Then you’ll need two savings accounts:

• The first would be for your emergency fund. This account should be harder to touch so you aren’t tempted to dip into it unless you absolutely have to.

• The second savings account should house your other savings goals. These include saving for a house, a car, and other goals.

That depends.

If you have less than $250,000 dollars, sure. Keep it in one account.

But if you have more than that, it’s recommended to split it up. This helps ensure that you have full FDIC insurance coverage in case your bank fails.

Considering that FDIC-insured banks only insure $250,000 each person, they need to have the rest somewhere. Millionaires put their money in many different places and classifications.

This includes:

• Real estate

• Stocks

• Mutual funds

• Other accounts

It’s important to keep your hard-earned money safe. If you’re thinking about storing your millions, it’s important to talk to tax professionals and even a financial advisor.