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Home > Interest on One Million dollars!!

Interest on One Million dollars!!

November 24th, 2009 at 06:18 pm

I opened a new certificate of deposit yesterday. The best rate I could get was 2.1% interest.
When I was much younger, we use to say we could easily live on the interest if we had a million dollars in the bank.
Back then, I was a bookkeeper for a small savings and loan. (No computers then, we did everything by hand including figuring the interest.)

We were paying 6% interest on savings accounts and 8% on C.D.'s. That means you could have earned $80,000 in interest if you had a million in c.d.'s
That is over $219 a day in interest.

Today, your one million will earn you a little over $20,000 in interest or $57 dollars a day. $57 dollars a day is pretty hard to live on in this day and age.

Oh well, anyway, I think it will be pretty neat to have a c.d. come due on my birthday next year. I just hope rates head up some day.

I colored my hair today ( I have been doing it my self for over 30 years) so I am adding $100 to my challenge for saving all that money for so long.
Prev. total $15,301.00
today 100.00
new total $15,401.00

Posted in $20 Challenge | 7 Comments »

7 Responses to “Interest on One Million dollars!!”

  1. all4money Says:
    November 24th, 2009 at 09:32 pm 1259098343
    1259098343

    2.1%?? Wow... I looked at getting one of our $1 mil CD's renewed (for work) a month ago and got quotes of around 0.80% to 1.9% for 12-24mos.

  2. Ima saver Says:
    November 24th, 2009 at 10:30 pm 1259101849
    1259101849

    Yes, the local bank is paying 2.12% this week; last week it was 2.2%. I am glad I have one c.d. locked into 4% for the next year.

  3. miz pat Says:
    November 24th, 2009 at 11:35 pm 1259105705
    1259105705

    All I can think is, as a frugal person, I could probably live on $20K a year, if I had to.

    WOW, I want a CD for a million bucks.

    And if the interest rates go up, I get even more!

  4. whitestripe Says:
    November 25th, 2009 at 12:21 am 1259108486
    1259108486

    you could look at the glass half full - atleast you would only have to work part-time Smile

  5. Broken Arrow Says:
    November 25th, 2009 at 08:15 pm 1259180119
    1259180119

    The relentless march of inflation, and how it affects real life....

  6. sicilyyoder Says:
    November 25th, 2009 at 10:03 pm 1259186609
    1259186609

    I remember the little red pass books- I had 5% interest and thought I was so rich when I would go to the bank and get the interest put in it.

  7. Ima saver Says:
    November 25th, 2009 at 10:26 pm 1259188014
    1259188014

    I remember them too sicily!!

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