With internship season in full swing, many students will be aiming to save as much as possible to fund their degree, while others will seein the experience as a long term professional investment.
Emolument.com has analysed 1,793 intern salaries in investment banking, technology and consulting in London and Paris. Despite lower cost of living in Paris, an investment banking internship in London is still the best bet for interns’ bank account.
|Sector||Salary||Difference with Advisory & Technology|
|Investment Banking salary||£41,865||0%|
|Advisory Consulting salary||£26,000||+ 61%|
|Technology salary||£23,000||+ 82%|
Graph 1 & Table 1. Based on 150 entries in investment banking, technology and consulting firms in the London – 2014/16 data.
Goldman Sachs, KPMG or Google? An investment banking internship is not only prestigious but also one of the most financially rewarding ways of passing your summer. In the UK, an investment banking intern earns 61% more than they would in advisory consulting, and 82% more than at a technology firm. The difference is less obvious in France, with a smaller pay gap (13%) between investment banking and consulting advisory.
|Sector||Paris||London||Difference between London & Paris|
|Investment Banking salary||£19,382||£41,865||116%|
|Advisory Consulting salary||£17,092||£26,000||52%|
|Cost of living||£3,626||£4,424||22%|
Graph 2 & Table 2. Based on 218 entries in investment banking and consulting firms in the UK and in France – 2014/16 data.
Cost of living: Canary Wharf or La Defense? To those interested in banking, head straight to London where earnings are more than twice those paid in Paris. Whether it be in investment banking or consulting, high salaries easily counterbalance the higher cost of living in London, which is 22% higher than Paris. An internship in investment banking or in consulting will cover rent, bills, outgoings plus more!
Graphs 3 & 4. Based on 1,566 entries of interns in the UK – 2014/16 data.
European interns in London: they would rather remain! 11% of London interns in banking and consulting departments come from outside the UK and 9% come from the EU. Despite the current concerns over Brexit, European interns are still able to work in London: achieving median salaries of £2,000 per month and an estimated £1,000 needed to cover costs in London, many interns will be able to save a decent amount of the extra £1,000.
Alice Leguay, Co-Founder & COO at Emolument.com said:
‘Beyond the obvious financial benefits of an internship in investment banking or consulting, it is also fantastic opportunities to sow the seeds of a burgeoning professional network and potentially lead to a job offer. However, it should also be a chance to be critical and see if the job is as attractive from the inside as it seemed from the outside, and perhaps discard it as a career path.’