Was interest rate in Brewster's Millions that high?
I was rewatching the movie Brewster's Millions (1985) the other day and there's this one scene that caught my attention: when the title character goes to check out his 30 millions at the bank the person in charge tells him he will get the "special interest rate" of 24% a year.
Is this a realistic value for that time? Nowadays the interest rate is less than 1%. Were the eighties banks that generous? Or is this a normal value for very wealthy accounts, even today?
Best Answer
Bank of England interest rate (which is a base rate, not the same as you'd get on the high street) peaked at 17% in 1979 but was still around 15% in the early to mid 80s. It's currently at a mere 0.75%.
So yes, interest rates were massive at that time.
The Bank of England is not a high street bank, btw, it's the authority behind all the money in the UK. Basically, they do actually have a licence to print money ;)
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How much did Brewster actually spend?
Brewster has to spend $30 million in 30 days or less to inherit $300 million; he is given the option to simply take $1 million upfront, but turns it down. This Hindi-language version was released in India in 1988. The plot remains the same \u2013 spend 30 million Indian rupees in 30 days or less to earn 300 million rupees.How does Brewster spend his millions?
Brewster's great-uncle dies and leaves him his entire $300 million estate but only if he can complete a challenge with several conditions. Under the Will, Brewster is offered two alternatives; take $1 million up front; or spend $30 million within 30 days to inherit the entire $300 million estate.Saying goodbye to our low interest rate reality | DW Business Special
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