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How much interest on 20 million pounds can you earn?

We look at how to earn the maximum interest on 20 million pounds in the UK and beat inflation, including by investing wisely and reducing your tax liabilities.


  • You can earn up to £1.044 million in interest annually on £20 million in the UK.

  • You will have to pay tax on savings interest, but there are ways to reduce this.

  • There are many ways to invest £20 million in the UK, including stocks, commodities, and property.

  • You can earn enough interest off £20 million to live comfortably for the rest of your life.

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How much interest can I earn on 20 million pounds?

How much interest on 20 million pounds you could earn depends on the bank and account type you select.

The top interest rates currently on offer from UK banks range from 5.22% to as high as 8%. 

Banks determine their interest rate offers based on the Bank of England (BoE) base rate.

For many years, the BoE base rate was quite low, but it has risen to 5.25% since December 2021. This means that banks can now offer more generous interest rates to savers. 

The below table outlines the different amounts of interest paid on £20 million before tax from the lowest to highest current available interest rates.

Interest Rate











£1.044 million




£1.05 million




£1.118 million




£1.160 million




£1.170 million




£1.60 million

You may want to opt for 8% interest on 20 million pounds, but each bank and account type comes with terms and conditions that may impact your decision.

For example, the Nationwide Building Society offers a generous 8% interest on their Flex Regular Saver Account.

However, you can only deposit a maximum of £2,400 into your account. This won’t take you very far if you’re trying to earn interest on 20 million pounds in the UK.

Metro Bank’s one-year fixed-term savings account, offers a less impressive 5.8% interest rate, but you can invest up to £2 million.

Then there are the challenger banks, like app-only bank Monzo, which offers various savings pots at a variable interest rate of up to 4.6%, with a maximum deposit of £100,000.

However, wherever you bank, it’s crucial that you remember that only up to £85,000 of your money in an individual account and £170,000 in a joint account is protected under the Financial Services Compensation Scheme (FSCS).

So, it may be better if you have a few accounts at different banks, especially when dealing with such a large sum. 

Do you pay tax on savings interest?

Naturally, you’ll have to pay tax on the savings interest for a sum as large as 20 million pounds. Fortunately, there are ways to reduce this tax.

Your income tax band determines how much tax you pay and whether or not you are eligible for a personal savings allowance (PSA). Your PSA determines how much interest is taxable.

Beyond this, you can place your funds in one or more individual savings accounts (ISAs), which allow you to save up to £20,000 each year tax-free.

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What is the best way to invest 20 million pounds to earn better returns? 

Simply moving your money away to a savings account to earn interest is not your only option. There are also other ways to invest.

Here’s an overview of some of the more popular investment options available to you:

  • The stock market: You can grow your money by buying shares and stocks via the stock exchange. If the business performs well over time, your shares will increase in value. Since share trading is complex and risky, you might want to start with a fund.

  • Property: You can also grow your wealth by purchasing property. You could then generate a semi-passive income by renting it out. Purchase wisely, and your property could appreciate in value over time, so you could resell it at a profit.

  • Commodities: You can invest in anything from precious metals to coffee by investing in commodities. This can yield great returns and offer a hedge against inflation.

Is it best to invest or save £20 million?

Whether it’s better to invest or save money is an age-old question, and both come with pros and cons.

The option you choose will depend on your preferences and personal circumstances. 

Consider the following:

  • A high-interest savings account will likely yield less returns than a smart investment but is less risky, and your funds will be easy to access. And remember that you’ll still pay tax on any savings interest.

  • Investing in shares, commodities, or properties presents you with a greater chance of increasing the value of 20 million pounds. But, there is potentially more risk involved, and your funds will be tied up in those investments for a long period of time. 

Whether you choose to save or invest, you should always aim to beat inflation.

Can you live off the interest from 20 million pounds?

Absolutely, yes. A 2023 study by Reed recruitment firm revealed that the average UK person requires £49,300 per year to live comfortably.

In London, this amount is considerably higher, at £65,000 per year. 

Fortunately, as shown in the table above, even a modest 1% interest on 20 million pounds will yield £200,000 per year. This is clearly more than enough to cover the current cost of living in the UK.

However, that amount is before tax, and there is no telling where inflation will go in the coming years.

It is also easy to become reckless with such wealth, so it is vital to be cautious with your spending and investing.

If you manage your wealth carefully, you could set up a comfortable way of life for your loved ones and for generations to come.

Get matched with a financial adviser 

The secret to managing your money wisely and earning maximum interest is to get guidance from a knowledgeable financial expert.

Let Unbiased match you with a financial adviser to help you manage your money, inheritance planning, and navigate taxes today.

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About the author
Our team of writers, who have decades of experience writing about personal finance, including investing, retirement and pensions, are here to help you find out what you must know about life’s biggest financial decisions.