Whether an ISA is better than a savings account depends on your financial goals and needs. The main difference between the two is that ISAs offer tax benefits on interest and growth, while savings accounts do not.
Savings accounts tend to be more flexible and better for smaller sums of money, and you can add and withdraw money whenever you want. But you may get a lower rate of interest than if you were to save your money in an ISA instead.
An ISA is normally better for medium to long-term saving, like saving for a house, a wedding or a big trip abroad, or just a rainy day. You can save up to £20,000 each tax year into an ISA, and typically benefit from a higher rate of interest than with a normal savings account, meaning your money works harder for you.
For example, with the Tembo Cash ISA, you’ll benefit from our competitive rate of 4.8% AER (variable), which is the best underlying rate on the market and 3x higher than the average rate of the Big 4 banks’ easy-access Cash ISA accounts.
Plus, the Tembo Cash ISA comes with simple terms and no nasty surprises:
🚀 Watch your interest grow daily
️⛓️ Withdraw funds whenever you need. No fees, no penalties.
🤑 Your interest rate won’t drop after 12 months, when you make multiple withdrawals or when your balance falls too low (unlike other providers)
And all the amazing perks you can expect from Tembo:
🏆 Fee-free mortgage advice from the UK’s Best Mortgage Broker
🚀 Average £88,000 budget boost
🤝 Your very own dedicated mortgage team + free tools to get you mortgage ready
🏡 Free property reports so you can search and offer with confidence
👩⚖️ Access to our panel of experts including tried & tested conveyancers and surveyors.
📊 Plus, rate trackers, webinars and more!
Open a Tembo Cash ISA today, or transfer your ISA savings to us from another provider.
Tax treatment depends on individual circumstances and may be subject to change in the future. Based on saving £100 at the beginning of each month for 5-years. Calculations show at month 61 (after 5-years) Tembo customers saving at 4.80% would have £550.14 on average more than saving with Barclays, HSBC, NatWest or Lloyds. Accurate March 2025.