Quora Answer: How Much Interest Could £100 Million Earn?

The following is my answer to a Quora question: “How much interest could £100 million earn?”

If you have £100 million, you are no longer putting that money in retail certificate of deposits, or ordinary fixed deposit accounts.  That is the sort of sum where you arrange a private placement of funds, for a specific period of time, for significantly higher returns over a shorter period of time.

A private placement is where you put those funds with a financial institution or a group of financial institutions, and draw down from them using a financial instrument such as a form of letters of credit or banker’s guarantee, depending.  This is the sort of sum that would be lent to a sovereign, for example, over a shorter period, at a significantly higher rate, often double-digit.  This interest could be paid in weeks or months.

When you have money, and you know what to do with it, you make money.  When you have an astronomical sum of money, you make an astronomical sum at an exponential rate, in a shorter period of time.  Done properly, £100 million could make several hundred percent in the same period a fix deposit would give you 4% to 10% per annum.