Tembo now offers up to £300 cashback in addition to 4.3% interest
- Customers transferring a Cash Lifetime ISA to Tembo by July 31st will receive up to £300 cashback
- This is in addition to Tembo’s market leading underlying interest rate of 4.3% (AER variable)
- This cashback payment takes the AER to the equivalent of 5.07% depending on the exact amount being transferred
London 24th June 2024 – Tembo, the family mortgage broker, has now added a cashback bonus payment of up to £300 to its Cash Lifetime ISA (LISA).
Until July 31st 2024, customers transferring a LISA of £5,000 or more to Tembo from another provider will receive cashback, in addition to Tembo’s market leading underlying interest rate of 4.3% (AER variable). The cashback bonus will be paid to the Cash LISA account six months after funds are received by Tembo (approximately January 2025). Customers must hold their Cash LISA for a minimum of 12 months for the offer to be valid.
The cashback payment takes the AER variable to the equivalent of up to 5.07% depending on the value of the transfer.
Tembo’s underlying interest rate of 4.3% AER variable remains the market leading rate for cash LISA products. To further reward its LISA customers, Tembo is giving its customers cash rather than a potentially confusing “introductory rate” that will drop at a future date. With the Monetary Policy Committee (MPC) expected to reduce the base rate in the coming months, customers are now well placed to benefit from the final days of higher rates before they start to fall.
The FCA has found that on average, UK savings only earn 1.25% interest. For many first time buyers striving to raise a deposit for their first home, earning the highest amount of interest on their savings will be an important part of their route to home ownership.
The impact of LISAs
One of the key benefits of Lifetime ISAs is that savers can get a 25% boost from the government to their savings up to a maximum of £1,000 per year. The Lifetime ISA (LISA) has seen huge growth since it was launched in 2017, with over half a million accounts now opened and £1.5 billion of funds saved by first time buyers.
With average UK house prices now £299,000, the LISA has played a huge role in helping first time buyers to reach deposit levels of 5%, which is generally the minimum required to open-up opportunities for a range of specialist mortgages and other home buying schemes.
In 2022, 50,800 first time buyers withdrew a total of £670m to put towards their first home purchase. This equates to an average withdrawal amount of £13,191 per home buyer.
Richard Dana, CEO of Tembo said “Many first time buyers will have been disappointed with the Bank of England’s decision last week to hold the base rate yet again. However, high interest rates are also a good opportunity for deposit savers, who should take this moment to review their savings rates and ensure they’re on the best possible deal. Average UK savings only earn 1.25% interest, which – given the high inflationary environment – is a very poor consumer outcome. We’re delighted to offer a further incentive for first time buyers, by offering up to £300 cashback on top of our market-leading underlying rate of 4.3% AER (variable).”
