This applies to all 21.5-inch iMacs with 4K displays: The internal drive bus is 6GBps but Apple insists on install older--and slow-- 3GBps drives in the majority of 21.5 inch iMacs, even some 27-inchers.
You can discover your drive's bus speed with System Information (preloaded). Find and select "SATA/SATA Express" in the left-hand contents pane. You will see something like this if you have the Slow Hard Drive Curse. This from our daughter's iMac 2017 4K 21.5-inch:

Were the drive a fast GBps model, both numbers would be 6.
So if you see that drive spec, your max transfer rate is 3GBps today. An external USB3 enclosure containing a 6GBps SSD will transfer up to 5GBps, as den.thed says. Actual drive performance tests from the EtreCheck utility posted here show measured increases (in MB/s) from the 50-70 range (5400 rpm factory drive) or 90-110 (7200rpm factory drive) up to 400 with the external 6GB SSD. Huge difference and very noticeable in use.
The USB external is a cost effective option. However be certain the external drive is USB3 and the SSD inside is rated 6GB or you will be back to Square One, or worse.