Tembo’s Easy Access Cash ISA is designed to do more than just pay interest on your savings. Alongside a competitive 4.45% AER (variable) and flexible withdrawals, the account comes with fee-free mortgage advice for savers, positioning it as a home-buying focused ISA rather than a simple savings pot. In this review, we look at how the Tembo Cash ISA works, what it costs, and whether its rates and added perks make it a good option for UK savers.
Tembo Easy Access Cash ISA Review: Competitive Rate With a 12-Month Bonus Catch
Account: Tembo Cash ISA
Description: Tembo’s Easy Access Cash ISA offers a competitive headline rate and a simple mobile-first savings experience. With 4.45% AER and unlimited withdrawals, it looks attractive for savers wanting flexibility and tax-free interest. But as with many high-rate ISAs, part of the return relies on a temporary bonus that investors should understand before opening.
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.
Pros
- Good interest rates
- Easy access
- Connected to a mortgage broker
Cons
- Not a flexible ISA
- Rate drops after 12 months
- Variable interst rate
- Pricing (4.5)
- Flexibility (5)
- App & Platform (5)
- Customer Service (4.5)
- Research & Analysis (4)
Overall
4.6
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
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