# Anyone living off interest from savings



## mcriot29 (26 Jan 2012)

Anyone living off interest from savings just interested to know , if so how much


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## Bronte (26 Jan 2012)

What is the question, how much savings one has or how much interest one is able to live off?


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## mcriot29 (26 Jan 2012)

Sorry i meant is anyone living off deposit interest


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## jackswift (26 Jan 2012)

I doubt many people could live off interest in saving unless they are either lotto winners, RTE fat cats or politicians. Of course the latter two don't need to live off interest as they just keep scrounging off us taxpayers. Do you fit into one of the above categories OP?


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## the-madman (26 Jan 2012)

I doubt this is the right place for this kind of discussion but I'd like to add a simple calculation.

1 million on 2,5% AER monthly payout would give you 2083.33 EUR - the Dirty Tax - either kapital gaines tax or income tax.   Thats not really much 
I would rather look for 2 million which give you 4166.67 EUR - the Dirty Tax - either kapital gaines tax or income tax.   That should leave you around 3k to live with at the end. 

Now neither am I an overpayed and underskilled politican (optional with forged phone bill's) nor am I working for RTE or a Bank or am I a AngloIrish Bond holder or the wife of a builder who was able to bring his money to a safe haven before declaring (pretending) burst. But I do dream about winning the Lotto one day. However, under 2 Million living off the Interests is just a dream.

But Off topic if you google for "big fat greek bonds" there are details about 5 month Greek bonds with a return of up to 144%. This kind of tempt's me but does not meet my ethical standarts. 

That's why others get rich and richer and I need to continue working hard for my money.


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## mcriot29 (26 Jan 2012)

380k at 5 percent would give 14 k after dirt 1 million would give around 28 k after dirt so im sure lots of rich live of interest of savings


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## dam099 (26 Jan 2012)

AER is not the full picture as inflation would be dimishing your capital and thus the real value of your interest income. While you might be getting the returns above in future years the real value of your income would be much less unless you are getting an interest rate above inflation and only spending the difference between it and the inflation rate.


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## mcriot29 (26 Jan 2012)

Thats true unless you dident touch interest .


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## machu (27 Jan 2012)

what banks are offering 5% deposit rates ?


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## The Ghoul (27 Jan 2012)

> AER is not the full picture as inflation would be dimishing your capital and thus the real value of your interest income. While you might be getting the returns above in future years the real value of your income would be much less unless you are getting an interest rate above inflation and only spending the difference between it and the inflation rate.


This is the key point. My net, *nominal* yearly deposit interest of around 3% would cover my yearly living expenses for now and probably for another few years. I'm very frugal and have decent savings.

But for me to sustain this long term, the *real* interest rate (interest minus inflation) would have to cover my costs. AFAIK deposit interest rarely/never beats inflation by much. At present I'm beating inflation by around 0.5% or 1.5% depending on whether I use the CPI or HCPI to measure inflation. Using those real interest rates I'd need well over a million in capital to live off the interest.


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## Lightning (27 Jan 2012)

machu said:


> what banks are offering 5% deposit rates ?



EBS are paying 5% AER for a 5 year term deposits according to multiple reports. It is an off the book deposit rate that EBS don't publish.


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## kdoc (27 Jan 2012)

mcriot29 said:


> Anyone living off interest from savings just interested to know , if so how much



I'm partially living off interest from savings. Coupling it with my pension it roughly makes up a fifth of my income. The trouble is I have to delve into the capital whenever I require a big ticket item.


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## mcriot29 (27 Jan 2012)

CiaranT said:


> EBS are paying 5% AER for a 5 year term deposits according to multiple reports. It is an off the book deposit rate that EBS don't publish.



Im getting 5.05 from ebs works out around 267e a week after dirt i get interest every month


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## elcato (27 Jan 2012)

> Im getting 5.05 from ebs works out around 267e a week after dirt i get interest every month


On how much deposit or is that our homework for tonight ?


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## Slim (27 Jan 2012)

elcato said:


> On how much deposit or is that our homework for tonight ?


 
I reckon about €392,000 +/-....nice.


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## The Ghoul (27 Jan 2012)

Slim said:


> I reckon about €392,000 +/-....nice.


I concur


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## mcriot29 (27 Jan 2012)

Spot on with the amount


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## mandelbrot (27 Jan 2012)

Looks like you might have to get a job so...  (I can't be the only one thinking it, as I sit in my office at 6.15 on a Friday evening!)


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## mcriot29 (27 Jan 2012)

Sure are you going to give me a job 
Thanks


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## wbbs (27 Jan 2012)

Much as I would like that money and shove it into EBS at that rate I would be afraid to have more than 100k, in fact I am even afraid to have less as don't believe any guarantee is worth much these days.   I partially live off interest and capital from a redundancy, have it spread around though and it is not sufficient to live on indefinitely, will need job, now there's a laugh!


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## mandelbrot (27 Jan 2012)

Are you looking for one?!

Based on your posting history you seem to be happy enough to live off what you already have salted away, it appears likely you have accommodation provided for you, and are awaiting plenty more by way of gift / inheritance, and no doubt the 3grand a year exempt is being used up, so I'm not so sure you do want a job TBH!

Not knocking you, each to their own...


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## wbbs (27 Jan 2012)

I presume you are not referring to my post?


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## mcriot29 (27 Jan 2012)

Dont think anyone could live off 267 id need at a lot more with bills etc these days


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## mandelbrot (27 Jan 2012)

mcriot29 said:


> Dont think anyone could live off 267 id need at a lot more with bills etc these days



People on the dole have to manage on less. Cloth, cut, measure etc...


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## mandelbrot (27 Jan 2012)

wbbs said:


> I presume you are not referring to my post?



No, sorry I was talking to OP!


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## the-madman (28 Jan 2012)

Guys, to be clear on this, Enda is accidentally flopping to talk his usual usual mischief. He just mentioned the very last days the greed of the people that caused this mess we have right now. 

The EZB rate is at 1%. Why do you expect EBS to give you long term 5%? 
Because they like you ??? 

Those current offered high interests are based on the banks running dry and the need to capitalize themselves with non borrowed money and that they need to be competitive due to the dirty taxes (DIRT). The 30% give Irish bank a huge disadvantage compared to other countries where deposits are not taxed so much or have a threshold where the taxes kick in. 

The high interest party will be soon over once the first Irish bank will go burst cause they cannot afford 5% savings interest without lending the money for at least 8% to clients. (in case you forget bank are living of the profit they make with the money not usually by a state bailout.

And who is lending money at the moment and for which rate ?????? euh no one 

We are driving full ahead to the next wall (bubble). 5% might be sustainable for this year and long term saving vehicles sealed this year, but rather sooner than later this will have to drop because the EZB decided that burning money is now more important than keeping the inflation under control. Mario Draghi was a former MD of Goldman Sachs (The dudes who organised the Greek debts and the forgery of their balance statements to join and remain in the EURO zone, and a buddy of Berlusconi. He is a damn good specialist in how to ruin the Euro eventually.


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## Jim2007 (28 Jan 2012)

Here in Switzerland an annual full state pension would cover about two months living expenses, so one must live on the "interest" from from private pension savings.  A private pension is required by law, so people either contribute to their employer run scheme or to a fund run by a pension company, if self employed.  The average professional will save around 900k in this way over their working life and this will lead to a pension of around 60k, which when combined with the full state pension of 22.5k will amount in an over all pension of 65 - 70% of of their final salary.


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## Protocol (1 Feb 2012)

Jim,

you would spend 22,500 euro in 2 months?


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## Protocol (1 Feb 2012)

In terms of the OP's question, yes I know somebody living off interest income.

Mid 30's, laid off, unemployment payment finishes after 12 months, so no income while re-training.

I suppose in these situations, you would try to not eat into your capital, and just spend the interest.


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