Anyone living off interest from savings

What is the question, how much savings one has or how much interest one is able to live off?
 
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?
 
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.
 
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
 
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.
 
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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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.
 
mcriot29 said:
Anyone living off interest from savings just interested to know , if so how much
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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.
 
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.
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Im getting 5.05 from ebs works out around 267e a week after dirt i get interest every month
 
Looks like you might have to get a job so... :eek: (I can't be the only one thinking it, as I sit in my office at 6.15 on a Friday evening!)
 
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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