Tembo¹, one of the most popular online mortgage advisors in the UK, who stepped into the world of cash savings last year, with their top rated Lifetime ISA, has now launched a brand new Cash ISA.
With a Cash ISA, you can save up to £20,000 per tax year (April 6th to April 5th the following year), and all the interest you make is completely tax-free.
With a Lifetime ISA, you’d have to use the money to fund a new home (such as for the deposit, alongside a mortgage), or later-in-life, similar to a pension. However, with a Cash ISA, there are no restrictions. Apart from only being able to save up to £20,000 per tax year (it's £4,000 with a Lifetime ISA).
A Lifetime ISA is still a great option for those planning to buy a home as you’ll get a 25% bonus from the government too – and Tembo can help find the right mortgage for you when the time comes, and for free if you use their Lifetime ISA or Cash ISA, which can be a saving of up to £749.
Note: if you are currently looking for a mortgage, you can get 50% off Tembo fees with Nuts About Money. Get started on the Tembo website¹.
Cash ISAs are super popular in the UK, and Tembo will need a very high rate to compete for customers. And it looks like they have! Tembo launched with a rate of 4.80% AER (variable) – this is how much you’d earn in 12 months time.
The interest could change over time (up or down), depending on things such as the Bank of England base rate. It’s not a fixed rate Cash ISA, which means you can add and withdraw money as you like, without it being locked in for a certain amount of time (usually a couple of years).
The interest is calculated daily, and paid into your account monthly, and you can get started with just £10. You are also able to transfer existing ISAs into your Tembo ISA.
Happy saving!
