Yes, you can withdraw all your funds and keep the account open, but the rules depend on which account you hold and how you withdraw the money.
Lifetime ISA (LISA)
Withdrawing for a home purchase
If you are making a full withdrawal for an eligible home purchase (arranged through your solicitor), your account will automatically remain open.
We do this because the LISA is a dual-purpose account meant for both buying your first home and saving for retirement. Once your purchase is complete, you can continue using the account to save for the future.
Making other withdrawals (Ineligible)
If you request a full withdrawal through the app for any reason other than a home purchase, this will automatically trigger the closure of your LISA.
The Penalty: Withdrawing for reasons other than buying a first home or retirement (age 60+) incurs a 25% government penalty. This means you could get back less than you paid in.
How to keep it open: To keep your LISA open after a full ineligible withdrawal, request the withdrawal in the app and then immediately contact us at
[email protected]. We will arrange to reactivate the account for you.
Cash ISA - Easy Access
To keep your Easy Access Cash ISA open, you must leave a minimum balance of £1 in the account.
Full Withdrawal: If you withdraw your full balance (bringing it to £0), your account will automatically close.
ISA Allowance: Please note that the Tembo Cash ISA is not flexible. If you withdraw funds and then pay them back in later, the repayment will count towards your £20,000 annual ISA allowance again.
Cash ISA - Fixed Rate
To keep a Fixed Rate Cash ISA open, you must maintain a minimum balance of £500.
Partial withdrawals are not permitted. Any withdrawal must involve the entire balance of the selected deposit(s), and it will automatically close the account upon withdrawal.
Early Withdrawal Penalty: If you withdraw funds before your fixed term ends, you will be charged a penalty equal to 90 days' interest on the amount withdrawn. The penalty will be deducted from your withdrawal amount, and depending on the interest accrued, you may receive less than the initial deposit.
Example Penalty Calculation: For instance, on a withdrawal of £1,000 from a Fixed Rate Cash ISA with an annual interest rate of 4% (AER), the penalty would be approximately £9.86 (£1,000 × 0.04 × 90/365).
ISA Allowance: Like the Easy Access account, this is not flexible. Withdrawn funds cannot be replaced without counting towards your annual allowance.
Processing Time: Withdrawal requests may take up to 5 working days to process. The app provides automated calculations to show the exact penalty before confirming the transaction.
We're here to help
If you are unsure about which withdrawal method applies to you or need help reactivating an account, our support team is on hand to guide you.
The safest and fastest way to reach us is via the secure chat in the Tembo app.
Alternatively, you can email [email protected] or use the live chat in the bottom right corner of the Tembo website or Help Centre.