How Much Interest Does $1 Million Earn Per Year?

Shawn Plummer

CEO, The Annuity Expert

When saving money, most people consider putting away a small amount of cash each month. But what if you had a million dollars saved up? How much interest would that earn you per year? In this guide, we will answer that question and give you a few tips on how to grow your savings!

How Much Interest Does $1 Million Earn Per Year?

For most people, $1 million is an unattainable amount of money. But for those lucky enough to have that kind of cash on hand, the question becomes – how do you make it work for you?

  • One option is to invest it in Certificates of Deposit (CDs), which typically offer low-risk returns of around 2% per year.
  • Fixed annuities are another option, which can provide higher returns (around 3-4.5% per year) but may come with more risk.
  • High-yield savings accounts and money market accounts provide around 1% per year.
  • For those willing to take on a bit more risk, fixed index annuities offer the potential for higher returns (around 4-7% per year).

Ultimately, the best way to invest $1 million will depend on your individual goals and risk tolerance.

But with a little research, you can find an investment to help you reach your financial goals.

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.

TermInsurance CompanyAPY
N/AMoney Market Account – Optimum Bank5.26%
N/AMoney Market Account – FVC Bank5.26%
N/ASavings Account – CloudBank 24/7 5.26%
12 MonthsBread Savings CD5.50%
48 MonthsClear Spring Fixed Annuity5.15%
5 YearsAthene Fixed Annuity5.30%
10 YearsEquitrust Fixed Annuity6.00%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this guide.

Find And Compare The Highest Interest Rates

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Calculate How Much Interest Does $1 Million Earn Per Year

You may wonder how much interest it will earn per year if you have a million dollars. The answer depends on several factors, including the interest rate and the length of time that the money is invested. You can use an online interest calculator to calculate the interest earned on a million dollars.

Simply enter the interest rate and the length of time that the money is invested, and the calculator will do the rest.

For example, if you invest your million dollars at an interest rate of 3% for ten years, you will earn $300,000 in interest.

Of course, this is a hypothetical example; actual interest rates and investment periods will vary. But using an interest calculator can give you a good idea of how much interest your million dollars could earn.

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Next Steps

If you have a million dollars saved up, congratulations! You are in a great position to reach your financial goals. Contact us for a quote if you’re interested in finding the best interest rates with ideal terms.

How Much Interest Does $1 Million Earn Per Year

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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