Tembo Lifetime ISA rate increases to 4.8%
We’ve increased the interest rate on our Tembo Lifetime ISA from 4.75% to 4.8% to match our brand-new Cash ISA rate. That’s the third time we’ve increased our interest rates in less than 1 year, and offers the market-leading interest rate for Cash Lifetime ISA savers.
Open a Tembo Lifetime ISA today
Save up to £4,000 per tax year and earn our market-leading 4.8% AER interest rate (variable). Plus, get a 25% government bonus of up to £1,000 per tax year for your first home deposit or retirement pot.
When considering opening a LISA, remember that withdrawals for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in.
What impact does this have?
With our new market-leading 4.8% AER (variable) interest rate, our customers can save over £800 more in interest with a Tembo Cash Lifetime ISA vs saving with the closest competitor on the market. As always at Tembo, this isn't an introductory rate- there's no drop-off after 12 months.
When does the rate increase come into effect?
The new interest rate will come into effect on Tuesday 14 January 2025 for all our existing and new customers. Once you're signed up to Tembo, your interest will be calculated daily and then applied monthly, landing straight into your account which you can see in the Tembo app.
What makes the Tembo Lifetime ISA so great?
As well as offering the market-leading Cash Lifetime ISA rate, Tembo is rated ‘Excellent’ on Trustpilot, thanks in part to our 10-minute response times and our excellent UK-based customer support team. We’re dedicated to helping you make home happen, which is why through our savings app, you’ll get a stack of ideas to help you save faster. You’ll also get access to tools designed to get you mortgage-ready, rate trackers, webinars and more! Plus, as a Tembo saver, you’ll get fee-free mortgage advice when you're ready to buy or remortgage through our award-winning mortgage service.
Our team aren’t just normal mortgage advisors - we’re specialists in helping people get on the ladder, often against the odds. On average, our customers increase their buying power by £88,000! Not to mention you’ll also get your own dedicated mortgage team, free property insight reports to supercharge your property search, and access to our panel of experts including tried & tested conveyancers and surveyors. Get started here
Who is Tembo?
Tembo is an award-winning savings and mortgage platform on a mission to help people buy their first home, offering a one-stop shop for customers to save their house deposit and get advice on their first home purchase.
With average UK house prices now £267,500, saving for a deposit is a huge challenge for many first-time buyers, with the average deposit needed now over £50,000. The good news is over 5 years it is possible to save this hefty sum by using the Tembo Cash ISA and Cash Lifetime ISA.
By saving the maximum £4,000 into a Tembo Lifetime ISA each tax year, and the rest into a Tembo Cash ISA, savers would get £5,000 from the government in free LISA bonuses, and £6,514 total interest payments across both accounts. This would take savers to the full £50,000 deposit, making Tembo customers over £940 better off than saving with the next best provider*.
Start your journey to homeownership
Save for your first home deposit with the market-leading Lifetime ISA. Open an account with just £1, or transfer your Lifetime ISA to us. Download our app today.
When considering opening a LISA, remember that withdrawals for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in.
*Based on saving £4,000 into a LISA each tax year for 5 years, and £2,500 in year 1, £4,000 in years 2-5 into a Cash ISA. Calculations show at month 61 (after 5-years) Tembo customers save £50,014, £944 more than saving with Moneybox.
