Where to Get 12% Interest on Your Money: High-Yield Investing Options in 2025
Thinking 12% interest is just a dream in 2025? Discover real ways people are getting double-digit returns on their money—facts, risks, and strategies explained.
Where to Invest Money: Practical Choices for UK Savers
If you’re looking to make your spare cash work harder, you don’t need a finance degree. Below are the most common places to put your money, why they matter, and how to get started without getting lost in jargon.
Low‑Risk Shelters: ISAs, Savings Accounts and Fixed Deposits
Cash‑plus accounts like Cash ISAs let you earn tax‑free interest while keeping your funds liquid. Most high‑street banks offer rates between 1% and 2%, but online‑only providers sometimes push 3% or more. Open an ISA online, transfer your existing savings, and you’ll see the benefit at the next tax year.
For a slightly higher return, think about a Fixed‑Rate Bond (also called a CD in the US). You lock your money for 1‑5 years and lock in a guaranteed rate, often around 4% for a two‑year term. The trade‑off is you can’t touch the cash without a penalty, so only use money you’re sure you won’t need short‑term.
Growth‑Focused Options: Stocks, ETFs and Robo‑Advisors
When you’re comfortable with a bit of volatility, the stock market can deliver 6‑10% average returns over the long run. If picking individual shares feels risky, look at Exchange‑Traded Funds (ETFs). An S&P 500 ETF gives you exposure to the biggest US companies for a single low‑cost trade.
Robo‑advisors like Nutmeg or Moneyfarm build a diversified portfolio for you based on your risk tolerance. You answer a few questions, they allocate your money across stocks, bonds, and real‑estate funds, and they rebalance automatically. Fees are usually under 0.5% of assets, much cheaper than a traditional fund manager.
Don’t forget about pensions. Your workplace’s salary‑sacrifice scheme often matches contributions up to a certain percentage. That’s free money, and the tax relief makes it one of the smartest places to invest for retirement.
Alternative Routes: Property, Peer‑to‑Peer, and Precious Metals
Buying a whole property requires a large deposit, but you can get exposure through Real Estate Investment Trusts (REITs) listed on the LSE. REITs pay regular dividends and let you profit from property price movements without the landlord headaches.
Peer‑to‑peer lending platforms let you fund small loans to individuals or businesses, earning interest rates from 5% to 12%. The risk is higher – borrowers can default – so spread your money across many loans to reduce impact.
Gold and silver can hedge against inflation, but they don’t generate income. If you like the idea, keep the allocation small (5% or less) and buy through a low‑fee ETF instead of physical bars.
Remember, the best strategy mixes safety and growth that matches your timeline. Start with an emergency fund in a Cash ISA, add a regular contribution to a pension, and then allocate any extra cash into ETFs or a REIT. Review your mix annually, and you’ll keep your money working for you without constant stress.
