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I want a monthly income from my inheritance, what should I do?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    smashy wrote: »
    I have a savings account for my daughter where the interest is 2%, so that makes around 1000k per month at least of profits.
    You know that's not 2% per month, right?
  • ColdIron
    ColdIron Posts: 9,959 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    I don't think you know how interest rates work. To get £1,000 per month at 2% you would need to start with £600,000. Interest rates are expressed as a per year figure so 2% of £100 would be £2 per year or not quite 17 pence per month. If you locked your whole £120,000 away for a year at 2% you would get £2,400 after a year which is the same as £200 per month. You need to rethink your plans

    That said there is no reason to put up with an awful rate of 0.35%
  • Robin9
    Robin9 Posts: 12,858 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    smashy wrote: »
    2% of interest monthly from 70k is £1400.

    Yes indeed - but you were looking for a 4% monthly investment.
    Never pay on an estimated bill. Always read and understand your bill
  • Robin9
    Robin9 Posts: 12,858 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    smashy wrote: »
    2% of interest monthly from 70k is £1400.

    Yes indeed - but you were looking for a 4% monthly investment.
    Never pay on an estimated bill. Always read and understand your bill
  • System
    System Posts: 178,365 Community Admin
    10,000 Posts Photogenic Name Dropper
    smashy wrote: »
    2% of interest monthly from 70k is £1400.
    Interest rates are usually stated as X% pa, where pa=per annum or per year. An interest rate of 2%pa on £70,000 will give you £115.61 per month in interest not £1,400!
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • smashy
    smashy Posts: 17 Forumite
    ColdIron wrote: »
    I don't think you know how interest rates work. To get £1,000 per month at 2% you would need to start with £600,000. Interest rates are expressed as a per year figure so 2% of £100 would be £2 per year or not quite 17 pence per month. If you locked your whole £120,000 away for a year at 2% you would get £2,400 after a year which is the same as £200 per month. You need to rethink your plans

    That said there is no reason to put up with an awful rate of 0.35%

    No, it is actually a 2% interest monthly, not annually.
  • Brilley
    Brilley Posts: 229 Forumite
    Fifth Anniversary 100 Posts
    ....2% interest PER MONTH.....OMG tell me the account quickly, all my money worries are over...!!
  • Flugelhorn
    Flugelhorn Posts: 7,407 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    We are intrigued - 2% MONTHLY?
  • ColdIron
    ColdIron Posts: 9,959 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    smashy wrote: »
    No, it is actually a 2% interest monthly, not annually.
    Name the savings account then or you are trolling
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    leslishambly wrote: »
    There can be a process, using that process you can get from them.

    Wise words, mate.
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