Robert G. Allen — Can you become a millionaire with a savings account?
“How many millionaires do you know who have become wealthy by investing in savings accounts?”
— Robert G. Allen
No, you do not become a millionaire with a savings account. At 0.5%/year, €10,000 invested becomes €13,497 after 60 years. Reaching a million in 60 years from €10,000 requires a 7.7%/year return, higher than almost every life insurance policy on the market. At 16.48%/year, the same capital reaches a million in 29 years — 15 years with €250/month of contributions.
Let’s be factual.
How much does a savings account really pay?
Livret A and LDDS (French regulated savings accounts): 0.5%/year
To become a millionaire starting from €10,000, you would need several lifetimes. In 60 years you would have just €13,497.
And with €13,000 in 60 years, you won’t be buying much — perhaps the equivalent of €2,000-3,000 today, thanks to inflation.
A PEL opened in 2000 at a rate of 3.27% (because today it’s 1%…)
In 60 years: €70,945. Still a long way from a million.
What it actually takes to become a millionaire
To reach a million in 60 years from €10,000 of starting capital, you need an annual return of 7.7% — more than almost every life insurance policy on the market.
Being a millionaire in 60 years is small comfort. So let’s look at what is genuinely achievable.
Realistic scenarios with the stock market
The Rise™ has delivered an annual performance of 16.48% over the past 30 years. Here is what that means concretely:
| Starting capital | Monthly contribution | Target: 1 million |
|---|---|---|
| €10,000 | — | 29 years |
| €20,000 | — | 24 years |
| €10,000 | +€100/month | 19 years |
| €10,000 | +€250/month | 15 years |
By comparison: playing the lottery 3 times a week at €2.20 a draw costs €5,148 over 15 years — for a 1 in 19,068,840 chance of hitting the jackpot.
The only variable that really matters
Whatever investment vehicle you choose, one thing is certain: every year of waiting is a year lost.
Compound interest needs time to produce its effect. Starting today with €100 is worth far more than waiting five years for perfect conditions.
Frequently asked questions
Can you become a millionaire with a regulated savings account?
What return do you need to become a millionaire?
How long does it take to reach a million in the stock market?
What is the difference in returns between a savings account and a PEL?
Is it better to play the lottery or to invest?
Should you wait until you have significant capital before starting?
Past performance does not guarantee future results. All investments carry a risk of capital loss.