Starling’s cash ISA may be convenient but you can get better rates elsewhere

How Tembo’s Easy Access Cash ISA Works

Tembo’s Easy Access Cash ISA allows savers to earn 4.45% AER (variable) on up to the annual ISA allowance of £20,000 per tax year, while keeping interest tax-free under the ISA wrapper. The account is designed to be simple and app-based, allowing customers to track their balance and interest growth through the Tembo mobile app.

Interest accrues daily and is paid monthly, which helps savers benefit from compounding over time. The account also offers unlimited withdrawals without reducing the interest rate, making it suitable for people who want access to their savings without locking money away. Withdrawals can take up to two working days to process.

One unusual feature is that Tembo links its savings accounts with its mortgage brokerage service. Customers who open a Tembo savings account are offered fee-free mortgage advice, which the company promotes as an added benefit for those saving for a house deposit.

Savings held through Tembo are protected by the Financial Services Compensation Scheme (FSCS), although the protection level depends on the underlying partner bank where the funds are held. Tembo states that funds are protected up to £120,000, reflecting the structure of its savings arrangements.

Is There a Catch?

The headline 4.45% rate includes a temporary bonus. The underlying rate is 3.4% AER, with an additional 1.05% bonus for the first 12 months. Once the bonus expires, the rate will fall unless Tembo increases the underlying rate.

Another limitation is that ISA transfers are currently not accepted, meaning you cannot move an existing ISA into the account. This restricts the product mainly to new ISA contributions rather than people consolidating older ISA savings.

Overall, Tembo’s Cash ISA is competitive for new savers who want flexibility and a strong introductory rate, but the bonus structure and lack of transfers mean it’s worth reviewing the rate again after the first year.

How the Moneyfarm Cash ISA Works

Moneyfarm’s Cash ISA allows savers to earn tax-free interest on cash savings, with a current introductory rate of 4.33% AER (variable) in the first year. After 12 months, the rate drops to 3.51% AER (variable).

Interest is calculated daily, and you can deposit up to the £20,000 annual ISA allowance each tax year. Moneyfarm also allows free ISA transfers, so existing Cash ISA balances can be moved into the account without affecting your annual allowance.

Unlike traditional bank savings accounts, Moneyfarm holds customer cash in Qualifying Money Market Funds (QMMFs). These funds invest in short-term, low-risk instruments and are designed to act like cash while generating interest. The rate paid on the account is linked to the yield of these funds, meaning it can change if market rates move.

The account also offers some flexibility, allowing withdrawals when needed without penalties.

What’s the Catch?

The 4.33% headline rate only lasts for the first 12 months, after which the account reverts to 3.51%.

To maintain the boosted rate, savers must keep at least £500 in the account and limit withdrawals to three per year. Exceeding this reduces the rate to the lower level.

Finally, because savings are held in money market funds rather than a bank deposit, returns are variable and can change depending on market conditions.

How does the Lightyear Cash ISA compare with rivals?

The Lightyear Cash ISA remains competitive thanks to its simple pricing, flexible terms and rate that tracks the Bank of England base rate, currently 3.75% AER (variable). You can withdraw and replace money without affecting your £20,000 ISA allowance, and there are no account fees, transfer charges or short-term bonus rates that later drop.

While the rate is solid, it now sits more in the middle of the market in 2026, with some rivals like Tembo offering slightly higher easy-access ISA rates. However, many of those come with bonus periods, withdrawal limits or tiered rates that can fall after the first year. Lightyear’s appeal is its straightforward approach: one variable rate that follows the base rate and no penalties for withdrawals.

Lightyear UK is authorised and regulated by the Financial Conduct Authority (FCA). FSCS protection applies to cash held with partner banks (typically up to £85,000 per person per bank), though this protection does not apply to money held in qualifying money market funds.

Is the CMC Invest Cash ISA any good?

Customers can easily transfer existing ISAs in-app, benefit from FCA regulation and protection of client money, and access the account within CMC’s wider investing platform, which serves over 1.5 million global users. The ISA is fee-free to hold (with an optional £15 urgent withdrawal fee) and sits alongside CMC Invest’s subscription plans that add investing features, lower FX fees and broader market access for those using the wider platform.

Is Wealthify's Cash ISA Any Good?

Rates: Wealthify’s Cash ISA currently pays 3.35% AER (3.30% tax-free p.a., variable) with interest calculated daily and paid monthly. Because the rate is variable, the amount you earn can rise or fall over time, typically moving in line with changes in the wider interest-rate environment. One advantage of using Wealthify is that savers can easily move into investment products on the same platform if savings rates fall and they want the potential for higher long-term returns.

As Wealthify’s Cash ISA interest rate is variable, the amount of money you get monthly will go up and down in line with any rises or falls in the Bank of England’s base rate.

But, the good thing about saving with Wealthify is that if rates go down again, you can switch into investments. One of the things that came up when I interviewed the then Wealthify CEO Andy Russell, back in 2020 was that it’s hard to educate people to invest rather than save, so hopefully, this may be people’s first step into a wider world of investing.

Market access & protection:  Wealthify’s ISA is also flexible, so you can withdraw and replace money within the same tax year without affecting your £20,000 ISA allowance.

However, as the FSCS’s compensation limit of £120,000 is per banking licence, and the Wealthify Cash ISA is powered by ClearBank, this means the £120,000 limit is shared across all accounts you hold with ClearBank. For example, if you have £100,000 saved in a Wealthify Cash ISA and £40,000 saved in another account powered by ClearBank elsewhere (including the Wealthify Instant Access Savings Account), only £120,000 of your deposits would be eligible for FSCS protection.’

App & platform: Wealthify’s website and app are simple and beginner-friendly, making it easy to open and manage a Cash ISA online.

Customer service: Although there are no branches, customers can contact Wealthify’s UK-based support team by phone, email or live chat if they need help.

Research & analysis: Wealthify provides guides, blogs and educational content about saving and investing, helping users learn more if they decide to move from cash savings into investments in the future.