High Interest Investments: How to Get Better Returns in 2025

If you’re tired of watching your money grow at snail‑pace, you’re not alone. More people are hunting for places where their cash can earn a solid percentage instead of just sitting idle. The good news? There are several practical routes that actually deliver higher interest without reckless risk. Below we break down the most reliable options you can start using right now.

High‑Yield Savings and Fixed‑Rate Accounts

One of the simplest ways to earn a decent rate is to park cash in a high‑yield savings account. In 2025 a handful of UK banks are advertising rates around 7% – see our "Banks Offering 7% Savings Account Interest" guide for the exact offers and the fine print you need to watch. These accounts are FDIC‑ or FSCS‑protected, meaning your money is safe up to the legal limit. The key is to compare the annual percentage yield (APY), any minimum balance requirements, and whether the rate is introductory or permanent.

Another low‑effort option is a fixed‑term deposit (sometimes called a bond or CD). You lock your money for a set period, usually six months to three years, and receive a guaranteed rate that’s often higher than a regular savings account. If you think interest rates will stay steady or fall, a fixed‑term deposit can lock in a good return now.

Smart Use of High‑APR Loans and Credit

Higher interest isn’t only about where you put money; it can also be about where you borrow. If you qualify for a loan with a low APR, you can use the extra cash to invest in a higher‑yield vehicle. For example, a 6% car loan (see our "Is 6% APR High for a Car Loan?" article) can be cheaper than a credit card that charges 20% + interest. Use the loan to buy a reliable car, free up cash flow, and then funnel that extra monthly cash into a high‑yield savings account.

Credit cards with a low introductory APR are another tool. Some cards offer 0% interest on purchases for the first 12‑15 months. You could buy a needed item, pay it off before the promo ends, and keep the rest of your cash earning 7% in a savings account. Just be sure to read the terms to avoid surprise fees.

Beyond savings and loans, consider peer‑to‑peer lending platforms that match borrowers with investors. These sites often quote returns of 8‑12% but carry higher risk because you’re funding individual loans. Diversify by spreading small amounts across many borrowers to reduce the impact of any single default.

Dividend‑paying stocks and REITs can also offer high‑interest‑like payouts. Look for companies with a stable dividend history and a payout ratio that isn’t too aggressive. While stocks involve market risk, the regular dividend can act like an interest payment, boosting your overall return.

Finally, keep an eye on tax‑advantaged accounts such as ISAs. A Cash ISA that offers a competitive rate lets you earn interest tax‑free, effectively increasing your net return. If you have room in your annual ISA allowance, use it to shelter the highest‑yield cash you have.

Bottom line: high‑interest investments aren’t limited to a single product. By mixing high‑yield savings, smart low‑APR borrowing, and selective higher‑risk options, you can craft a portfolio that genuinely works harder for you. Start with the low‑effort, low‑risk choices, then add a sprinkle of higher‑yield opportunities as you get comfortable. Your money will thank you.