UK's 'best' Cash ISA with monthly returns and £1 minimum contribution

A money expert has revealed the best Cash ISA you can get right now, with a low minimum contribution and an attractive interest rate for savers. Many Brits opt for Cash ISAs, gaining tax-free interest on their savings of up to £20,000 per year. While Chancellor Rachel Reeves is expected to slash the Cash ISA limit to encourage more people to opt for Stocks and Shares ISAs, the limit remains at £20,000.

With that in mind, it might be a good time to get a Cash ISA if you have been considering it. Cash ISA base interest rates have started to drop over the last few years, so it's worth putting some thought into which one you choose to get the most returns out of your money. Lanna Rosgen, market analyst at Which?, has revealed the best Cash ISAs available to savers as of August 2025. "You should consider transferring your savings if your account isn't working hard enough," she says.

The money expert compiled a list of the best Cash ISAs that offer savers the best interest rates at the moment. She includes instant access ISAs as well as fixed-rate deals.

The top Cash ISA in the UK right now, the data reveals, is the instant access Cash ISA from Chip. This saving option has an interest rate of 4.7% with a minimum investment of just £1. It can be opened quickly using a mobile phone and interest is paid monthly.

In second place is the one-year fixed rate Cash ISA from Shawbrook Bank, which has an interest rate of 4.31% and a minimum investment of £1,000.

Shawbrook Bank is also in third and fourth place with its two-year fixed-rate Cash ISA (4.21% interest rate) and its three-year fixed-rate Cash ISA (4.22% interest rate).

As it stands this month, the best four-year fixed-rate Cash ISA for savers in the UK is provided by UBL UK. It has an interest rate of 4% and a minimum investment of £2,000.

Cash ISAs are the most popular form of ISA in the UK, largely down to the fact that they are the safest. Stocks and Shares ISAs can give greater returns for savers but do carry more risk, as investments are never guaranteed.

One money expert, Samuel Mather-Holgate, an independent financial adviser at Mather and Murray Financial, has warned that people using Cash ISAs to save are losing money.

He revealed: "Inflation has been at record levels and your cash will not have kept up with this, so the buying power of that money has reduced. Shift some of the cash into an investment ISA and over the long term you should see better growth, and higher-than-inflation returns."