Digital savings and mortgage platform Tembo has launched its first easy access Cash ISA with a 4.8% interest rate.
The new product adds to Tembo’s growing savings range, following the successful launch of the provider’s Lifetime ISA (LISA) last year, also paying 4.8% interest.
Tembo savings customers also benefit from access to fee-free mortgage advice from Tembo’s brokerage, which it says can save them up to £749 on the standard fee.
Richard Dana, founder and CEO at Tembo said: “We’re delighted to now be able to offer our customers access to our brand new Cash ISA savings product alongside our market-leading Lifetime ISA.
“Combining Tembo’s specialist range of family and affordability boost mortgages with market-leading saving accounts enables our customers to get on the property ladder sooner in what is a very challenging market for first time buyers.”
Tembo’s easy access Cash ISA can be opened with a minimum deposit of £10 and interest is paid monthly.
There are no restrictions on withdrawals, which may appeal to savers looking for more flexibility with their pots.
Cash ISAs have become increasingly popular over the past years with higher interest rates dragging more people into tax thresholds. These accounts allow people to save up to £20,000 a year tax-free.
But while Tembo may be offering an appealing rate, the product isn’t quite topping the table in the easy access Cash ISA sector.
Smart money app Plum recently raised the interest on its easy access Cash ISA to a market-leading 5.01%.
Savers can launch the account with a £1 deposit and interest is paid monthly. However, savers must invest at least £100 to receive the full 5.01% Annual Equivalent Rate (AER). This rate includes a 1.22% bonus for 12 months, after which the rate will drop.
Plum’s account allows up to three withdrawals in one year without penalty. After the fourth, the interest rate will drop to 2.5%.
Moneybox’s Cash ISA falls just behind with an AER of 5%, which includes a 0.55% bonus for 12 months.
Savers can launch the account with a minimum deposit of £500 and up to three withdrawals are permitted per year. The interest rate, which is paid on the anniversary of opening the account, will drop on the fourth withdrawal.
For savers looking for more flexibility, Trading212 offers an AER of 4.9% and unlimited withdrawals. Savers need a mininunm deposit of £1 to open the account and interest is paid daily.
