How to open an ISA 

Who can open an ISA?

You can open an ISA if you’re aged 18 or over (or 18 - 39 to open a Lifetime ISA) and a UK resident, or be a member of the armed forces or a Crown servant (for example, diplomatic or overseas Civil Service).

You can only save up to £20,000 across all your ISA accounts each tax year. So if you’ve already hit this limit for this tax year, you won’t be able to fund another ISA until the start of the next tax year. Some ISA providers may have other criteria which will determine if you can open an ISA account with them, such as having a minimum deposit amount to open the account, or that you must have a current account with them to be eligible. 

You may also be able to open a Junior ISA for a child, but you won’t be able to make any withdrawals on their behalf, and they’ll only have access to the money once they turn 18.

How to get an ISA

You can get an ISA in minutes simply by opening an account with your chosen provider. Some providers let you open and manage your ISA via an app, making it easy to manage your savings and track your progress. 

There are dozens of ISA providers to choose from with a range of interest rates and terms, so it’s a good idea to compare a few options before opening an account. 

Here are the key things to consider when choosing an ISA:

• What is the interest rate? A competitive rate will make it easier to grow your savings and reduce the impact of inflation.
• Is the rate introductory? Some providers will offer a higher interest rate to new customers to entice you to become their customer, but reduce the rate after a set period. 
• Can you withdraw your savings at any time? Some providers will charge a fee to access your cash or reduce your interest rate after a certain number of withdrawals. 
• Do they offer a choice of ISA types? You can open a Cash ISA, Cash Lifetime ISA or Stocks & Shares Lifetime ISA with Tembo.

Perfect for you: 12 reasons to save with Tembo

Which ISA should I open?

If you’re saving for short-term goals, an easy access Cash ISA will usually offer the most flexibility. While a Fixed Rate Cash ISA will allow you to benefit from a fixed rate of interest in return for locking your money away for a set period. These types of accounts are better for long-term saving, or money which you are unlikely to need access to anytime soon. 

If you’re saving for your first home or retirement, a Lifetime ISA (LISA) may be a no-brainer. Save up to £4,000 each tax year in a LISA and the government will boost your savings by 25%. Max out the account and you’ll get up to a £1,000 bonus!

You can choose between a Cash Lifetime ISA or a Stocks & Shares Lifetime ISA - either way, you’ll get a 25% bonus. But you’ll lose the bonus and 6.25% of your own savings if you make a withdrawal before age 60 for anything other than an eligible first property purchase. So if you need flexibility, consider a Cash ISA instead.

Learn more: What is a Lifetime ISA?

How to open a Cash ISA

Many providers let you open a Cash ISA in minutes. Here’s how easy we make it:

1. Download the Tembo app and create an account
2. Select ‘Cash ISA’ from the options available
3. Deposit £10 or more

How to open a Lifetime ISA

You can open a Lifetime ISA quickly and easily with Tembo. All you need to do is:

1. Download the Tembo app and create an account
2. Select ‘Lifetime ISA’ from the options and choose between a Cash Lifetime ISA and Stocks & Shares Lifetime ISA
3. Deposit £10 or more

You need to have your Lifetime ISA open (and funded with at least £1) for a full year before you can withdraw the money to use towards your first home. So if you’re a first-time buyer but you’re not sure how long it’ll be until you’re ready to buy, it can be a good idea to open a Lifetime ISA sooner rather than later and pop a quid in just to start the clock! That way, if you’re ready to buy sooner than you expected, you don’t need to wait another 12 months. 

Learn more: How to open a Lifetime ISA