Remember the 1990s, when savings accounts paid double-digit interest and there was always soda in the fridge? Me neither. Here in 2025, a 12% interest rate sounds as likely as my cat Tiberius writing this article himself. Yet, run a search, and you’ll see ads promising 12%+ returns. But where do you actually get 12% interest on your money now—and is it real, or just another unicorn riding a rainbow?

Is a 12% Interest Rate Even Possible Today?

Let’s rip off the plaster: 12% is not something you’ll find in your local bank’s savings section or with a high street cash ISA. The last time UK savers got close to a risk-free 12% was before many current university students were born. These days, standard savings accounts and fixed-rate bonds in the UK hover from 4% to a spicy 5.5% if you really hunt around. In the US, online banks stretch a bit further, but double digits are rare and usually time-limited. The Bank of England’s own statistics for 2025 show the average instant access account pays just over 3.7% (see table below).

But there’s a catch: outside cash, 12% is possible—but rarely simple, safe, or steady. If you see anything offering those numbers without risk, run. And then run some more. Genuine options with a *chance* of hitting 12% almost always mean one thing: more risk. But risk comes in flavours. The stock market. Peer-to-peer lending. Real estate. Even crypto, if you don’t mind wild rollercoasters. Each one can give you juicy returns, but none are as safe as leaving cash under your mattress—although even that’s a bad idea, trust me (moths, you know?).

So, is a 12% interest rate possible? Yes, but don’t expect it to come with FSCS protection or a tidy annual statement from your old bank. 2025 isn’t the place for get-rich-safe schemes. But for risk-tolerant folks, some corners of the market still pay double digits—in some years, at least.

Where Are People Actually Getting 12%?

If you’re hearing coffee shop whispers or social media stories about double-digit returns, they’re not all made up. Here’s a peek into where the numbers can add up—sometimes spectacularly, sometimes heartbreakingly.

• Peer-to-peer lending platforms: Companies like Funding Circle, Mintos, and Assetz Capital say you could get 8% to even 15% returns lending directly to individuals and small businesses. The trade-off? You’re not covered if borrowers default. According to Funding Circle’s published stats for 2024, average returns for UK investors after fees and defaults hovered between 7% and 10%—but the occasional loan going bust can really drag that down.
• Buy-to-let property and Real Estate Investment Trusts (REITs): Some UK REITs and certain global property funds have reported 10%+ returns in strong years, especially in markets recovering from the pandemic slump. But property isn’t as hands-off as it looks. Tenants don’t always pay on time, boilers break, and housing values can swing.
• Stock market and equity funds: The FTSE 250, S&P 500, and some US growth funds have all averaged more than 12% in strong years, although that number could also be negative in a bad year. For example, the S&P 500 returned around 24% in 2023, but lost ground during the pandemic. UK growth funds are offering 8-15% annualised over the last three years, but that’s an average—some years feast, some years famine.
• Corporate bonds and emerging market debt: A few high-risk, high-yield bonds—often labelled "junk"—promise interest rates of 8-14%. But defaults do happen and the ride can be bumpy. As the Bank of England warned in August 2024, “High-yield bonds carry much greater risk of capital loss compared to traditional savings.” It’s no free lunch.
• Cryptocurrency staking and DeFi (Decentralized Finance): If you’re willing to ride the crypto rollercoaster, staking coins or joining DeFi lending platforms can offer 10, 12, even 20% per annum—at least when the market is friendly. In 2021, platforms like Celsius and BlockFi made headlines for these numbers, but bankruptcies in 2022 and 2023 wiped out billions, so caveat emptor.

Other wildcards: some crowdfunded start-ups or private equity deals offer giddy numbers in their presentations. But these are usually only accessible to sophisticated, high-net-worth investors, and many wind up as expensive lessons in due diligence.

Here’s what Bankrate’s CEO Mark Hamrick said about chasing high yields:

"If it sounds too good to be true, the key is to dig beneath the surface and ask, ‘What can go wrong?’ High yields always come with trade-offs."

Doing the Maths: Risks, Rewards and Real Returns

It’s easy to get hypnotised by big numbers. But always, always pop the hood. There’s a difference between interest and total return. Interest is what you get on deposits or bonds. Total return includes gains, losses, fees, taxes, and what happens if half your investment goes up in smoke.

Example: Say you invest £10,000 in a peer-to-peer platform promising 12% average returns. After fees (say 1.5%) and borrower defaults (another 2-3%), your real return could shrink to 7-8%. Factor in inflation—currently around 4.5% in the UK, according to the ONS—and your inflation-adjusted gain is much lower.

And let’s talk risk: NONE of these are FSCS protected. Lose money lending to the wrong borrower or betting on the wrong stock, and you could kiss the principal goodbye. Even in real estate—often sold as ‘safe as houses’—rental income can dip in a downturn, or you could spend three months chasing a leaky tap.

My tip? Diversify. Never put all your money in one pot. Try a mix: stocks, a dash of high-yield bonds, maybe a little peer-to-peer if you can swallow the risk, and always keep some cash for emergencies. My mate Julia tried going all-in on dividend stocks in 2022—looked good until two major holdings cut their payouts, and she had to sell her Peloton (don’t tell her I mentioned).

Spotting the Red Flags: Scams and False Promises

The internet is crawling with sites making wild offers for ‘guaranteed’ 12% interest. If it’s from someone you’ve never met, tries to hurry you, or comes with lots of jargon and very little detail—be suspicious. The FCA warns about this almost weekly. Fraud and Ponzi schemes, especially on WhatsApp groups and flashy social platforms, look slick but can clean you out. Realists know there’s no such thing as 'risk-free double digits.'

• If anyone pressures you, walk away.
• If you don’t understand the investment, leave it.
• Always check for registration with the FCA (or your country’s equivalent regulator).
• No legitimate offer will make you act instantly or refuse detailed paperwork.
• If it promises ‘no risk,’ that’s the world’s biggest red flag.

One often-missed trick: even old-school scams are getting clever. Tiberius, my cat, recently crawled over my phone and almost ‘invested’ in air fryers for hamsters (I wish I was joking). Stay sharp—if your gut nags, listen.

Finally, always look up reviews, use sensible comparison sites, and, if you've got doubt, talk to a regulated financial adviser. The Office for National Statistics says that reported investment fraud in the UK hit a record last year. Don’t let your hard-earned cash turn into a statistic.