Right now, when you save into a Tembo Cash Lifetime ISA the interest rate is 4.6% a year, which could go up or down in the future (in finance jargon, that’s 4.6% AER variable). The gross rate is 4.498%.
This is currently the market-leading interest rate for the Cash Lifetime ISA, excluding introductory periods. This means over 5-years, you'll save hundreds more versus the next best product on the market from any of our competitors.
With the Tembo Cash ISA, the interest rate is 4.8% AER variable (the gross rate is 4.689%). That's the best underlying rate on the market, and earns you 3x more interest over 5 years vs saving with one of the UK's biggest four banks.
When did the rate last change?
We increased the rate on our savings products three times in a row from February 2024 onward, eventually increasing it to 4.8% AER (variable) on 14th January 2025 against a backdrop of Bank of England base rate cuts.
On 18th February 2025, we cut our interest rate by 25pbs, from 4.8% to 4.55% following the Bank of England's third consecutive base rate cut in 6-months to 4.5%. This new rate of interest applies to all your funds held in a Cash Lifetime ISA or Cash ISA from 18th February 2025 onward.
We always strive to offer the best possible savings rates for our customers, which is why on the 4th March 2025 we increased our savings rates from 4.55% to 4.6% AER variable (gross rate 4.498%), and increased our Cash ISA rate again on 11th March 2025 from 4.6% to 4.8% AER variable (gross rate 4.689%).
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 4.8% would have £550.14 on average more than saving with Barclays, HSBC, NatWest or Lloyds. Accurate March 2025.