Help me understand bank accounts.

[Smits]

Basically i'm just randomly thinking about what would happen if i came into a large some of money, say £2 million or something. (Not saying i will btw) but it got me thinking about how i could live off the interest, which i hear people say all the time.

How would this be possible, and whats the difference between all these different bank accounts? I mean i have a basic account with hsbc, no overdraft, what i put in i can get out, so thats about all i understand?

So if you had a lump some, would it be best to put it into a savings account? Or a current account? Also, whats the difference between a fixed term bond, cash ISA and easy access acount?

[Blinger1]

I dunno if this answers your question properly...

I have two bank accounts, one is a "high interest bank account" which was at 8 percent per annum when i signed up, but has since gone down to about 3.55 percent since the government has reduced the interest rate..
The more i keep in this account the more i accumulate. For instance I have roughly 2100 dollars in the bank, and i get $5.55 interest per month.

For my normal account the interest rate is extremely low, (no idea what it is) but i get roughly 2cents interest on whatever is in that account..

[Ardemax]

at these days in recession you could just about live off £2m in interest

however it's all down to your interest rate, as stated by Blinger

but honestly, if you were, say 18, and you lived off interest rates for your life, think about it, you'd get bored!

id also put the money in a saver account, but remember to not touch it until they say you can

[Seatherny]

You could get around £40,000 interest (if you find the right bank) from just £1,000,000 so living off two million would be awesome.

[Jay.]

Im on an ISA - i get 20p interest woo!