Yesterday, someone won the £170 million Euromillions jackpot. We don’t yet know if it’s one individual or a syndicate, but either way it’s a lot of money! But what could you do with it and how far would it go?
Keep it in the bank
If you did nothing with your £170 million Euromillions win but kept it in an easy access savings account (we’ll assume you go for a best buy, paying 1.5% interest), you’d earn almost £7,000 interest every day. That works out at almost £290 an hour. Not a bad hourly rate, bearing in mind you wouldn’t actually have to do anything.
The question is, where would you put it? You wouldn’t want to put all £170 million in one bank. If the bank went bust, only the first £85,000 is protected by the Financial Services Compensation Scheme (FSCS).
SAVVY TIP: There’s something called ‘temporary high balance cover’, which means you can have up to £1 million in a bank for up to six months, and you’ll be protected by the FSCS. After six months, the protection limit reduces to £85,000 again. However, this doesn’t apply to lottery wins!
If you wanted to keep your money in savings accounts, you’d have to split it between 2,000 different banks (or 1,000 if you had the money in joint accounts!) in order to stay below the £85,000 limit. Unfortunately, there aren’t 2,000 different banks in the UK.
You could put it all in NS&I while you work out what to do with it. Any money you have with NS&I is 100% backed by the UK government. So, assuming the government can repay its debts, all your money would be safe. By my calculation, you’d be able to put £4,070,000 into NS&I, assuming you saved the maximum in each product. I’ve not included Junior ISAs as the money isn’t yours. You wouldn’t earn a top rate of interest, but that probably wouldn’t be your biggest worry!
If you want to grow your money, investing it is a good option. It’s not without its risks, but – if you have ten years or more so you can ride out the ups and downs of the stock market – you should make a profit.
I’ve looked at some figures from Aviva, which show that if you invested £100 million and received 4.5% growth per year, paying charges of 0.75% a year, you’d generate another £100 million in growth after 20 years, so you’d turn your £100 million into £207 million.
Of course, that return isn’t guaranteed. You could make nothing at all or even lose some.
Assuming you lived for 30 years you could take out £555,000 a month to live on, but after 30 years you’d have used the whole lot up!
If you were to win £170 million, I’m sure you’d want to spend a few million at least! But how far would your money go? Not as far as you might think, if you have a real taste for the high life!
- The most expensive dress I could find sold for $30 million in Kuala Lumpur. You get a lot of diamonds and Swarovski crystals for that sort of money!
- If you want to live in the most expensive street in Britain, a property there will cost you around £35 million.
- A private jet would set you back anything from half a million pounds to tens of millions – depending on what you want to buy. Of course, you can go for the – um – budget-friendly option and hire one!
- If you wanted to own a racehorse – might cost you up to £2,000 a month in stabling and training. You can pay upwards of £1,000 for a racehorse – certainly plenty of them sell for tens of thousands.
SAVVY TIP: The most expensive racehorse sold for $60 million in 2002 – Irish horse called Fugaichi Pegasus. He’d already had his racing career at that stage, but his owners bought him for a mere $4 million when he was a youngster, so they did well!
Do your own thing
Some of the oddest things lottery winners have done with their winnings include:
- Creating their own wrestling TV show
- Buying a weather station
- Making political donations (not sure how wise that would be at the moment!)
- Buying an acre of the moon. I’ve looked this up and this is a thing, although how you’d actually get to enjoy your acre of moon – or prove it’s yours – is another matter entirely.
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