What is the interest rate for a private banking account with a sum of over 1 million? Is the interest better annually?
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Nomi_Omi23
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
you certainly do ask a broad range of questions!
some banks might be willing to negotiate terms for this sum of money but in terms of whether you should take annual or monthly interest, if its credited to the account monthly there will be no difference and the bank will quote the AER (annual equivalent rate) but if you have the interest credited to another account (ie not the account that it originated from) then the annual option would be slightly higher.
you might also need to consider whether you would need access to spend the interest as this might override the rationale behind taking a higher annual sum.
you should also bear in mind that the deposit protection scheme will only cover you on deposits up to £85000 per licence (some banks with multiple subsidiaries will only have one licence and not one per brand).
you could consider national savings as it is 100% backed by the UK Government but it wont offer the highest rate as the government cannot afford high deposit rates when the country is in such a financial mess!
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some banks might be willing to negotiate terms for this sum of money but in terms of whether you should take annual or monthly interest, if its credited to the account monthly there will be no difference and the bank will quote the AER (annual equivalent rate) but if you have the interest credited to another account (ie not the account that it originated from) then the annual option would be slightly higher.
you might also need to consider whether you would need access to spend the interest as this might override the rationale behind taking a higher annual sum.
you should also bear in mind that the deposit protection scheme will only cover you on deposits up to £85000 per licence (some banks with multiple subsidiaries will only have one licence and not one per brand).
you could consider national savings as it is 100% backed by the UK Government but it wont offer the highest rate as the government cannot afford high deposit rates when the country is in such a financial mess!
