How Much Interest Does 1 Million Dollars Earn Per Year?

by Jason Butler on February 1, 2017 · 6 comments

How Much Interest Does 1 Million Dollars Earn Per Year?Hello, Dinks. In today’s post, I will be going over a pretty interesting topic. A million dollars is a lot of money. For most people, that amount of money will change their lives. I know for a fact that it would change mine.  Have you ever considered how much interest 1 million dollars could earn each year? I’ve thought about it. The number differs depending on the type of investment that you do. Based on your lifestyle you may or may not have to work anymore depending on how much interest you make. It would depend on things such as your spending and your budget. Below, I want to go over two different ways that you can invest that million dollars.

US Treasury Bonds

The first way that you can invest one million dollars is through US Treasury bonds. The current rate for a 30 year US Treasury bond is 3.08%. You would earn approximately $30,800 from the one million dollars each year. That’s an ok investment. Let’s see how much you can get by investing in a savings account.

Savings Account

If you decided to put your money in a regular savings account from a bank such as Bank of America, you could expect to earn only one thousand dollars each year. It would be a waste of time to put your money there.

In this case, the one million dollars will make substantially more money being invested in a 30 year US Treasury bond. For many people, $33,000 is not enough to live off of. I don’t spend that much money, but I’m not even sure that I could pull that off. I would have to tighten up in a few areas. Also, I probably would only be able to travel once or twice each year. Putting a million dollars in a regular savings account shouldn’t even be an option. You can make an extra thousand each year by selling things on Craigslist. If I were you, I’d speak with a financial advisor to figure out some of the other options that are out there. Stocks and mutual funds are a couple of other investment options that you can consider. You want to make sure that you are comfortable with where your money is going.

Some people may choose not to work anymore if they can find a way to grow the million. That decision will come down to a couple of things.


You have to consider your budget. Your housing, food, bills, healthcare, and taxes should all be included. For many people, one million dollars is just not enough to live on. You will still need some more income coming in.

The economy

We live in a very unpredictable world. Right now the economy is doing pretty good, but who knows what will happen under this new presidential administration. 2008 could happen all over again. If it does, you want to be prepared. You don’t want to go broke during the tough times.

As you’ve read, the amount that one million dollars can earn from interest can fluctuate. It would do better if you invested it in the bonds or stocks than if you just put the money in a regular savings account.

Real Estate

Buying real estate is always a safe bet, as you know you have a long-term asset sitting there. House prices have been in rising across the US, this is the case abroad in countries like the UK. According to EHL, the leading Conveyancing Solicitors in the UK, the general trend of rising house prices is continuing, with the average UK property reaching £226,185 in July, an increase of 5.1% annually – It would be smart to invest in property.

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{ 6 comments… read them below or add one }

1 Jamie @ Medium Sized Family February 4, 2017 at 9:16 am

It would certainly be nice to have that money invested and work part time to supplement your spending as needed. I wonder what return you could “expect” from stocks?

2 Emily @ JohnJaneDoe February 4, 2017 at 1:43 pm

Muni bonds would be another option. They are tax-free on your federal return and possibly on your state return (if you have one). Generally, they a pay a bit more than Treasuries since they carry a little more risk.

3 Tyler February 4, 2017 at 1:43 pm

Jason, a million dollars would be plenty for my wife and I. Our expenses are pretty low (less then $25k a year) and we could easily get that with a million in stocks, or as you brought out even in US treasury bonds. Now the trick is getting the million…

4 Mel @ brokeGIRLrich February 4, 2017 at 2:31 pm

I didn’t realize it would generate that much income just through bonds. That’s actually a very livable amount to me.

5 Gary @ Super Saving Tips February 4, 2017 at 2:37 pm

While $30k a year in interest might not be enough to support you entirely, it would definitely make a nice supplement to whatever else you choose to do for income (or in my case, my Social Security benefits and existing retirement funds).

6 RAnn February 4, 2017 at 8:14 pm

Luckily there are a lot of other things you can do with a million dollars. A general consensus of many financial planners is that you can withdraw 4% of your account every year indefinitely. That would be $40,000 which, while not a fortune, is probably liveable when added to social security.

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