A Cash ISA stands for a Cash Individual Savings Account. This is a special savings account that lets you save up to £20,000 each tax year free from Income Tax. If you save your money in a normal savings account, like a regular saver with your normal bank, you may end up paying tax if the amount you earn in interest exceeds your personal savings allowance (PSA).
Cash ISAs often offer higher interest rates than you would get with a regular savings account. For example, with the Tembo Cash ISA, you’ll earn our competitive rates on your savings, while the average interest rate across the easy-access, instant Cash ISA accounts from the UK’s biggest four banks is 1.47%.
That means with a Tembo Cash ISA, you’d earn 2.7x more interest vs saving with one of the Big 4 - that’s hundreds more in interest over 5 years if you were to save £100 a month.
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.