'Nude' LISA changed to 'Tembo' with 4.3% rate!

Oasis1

Just saw my app had updated with this info. Really pleased! https://www.getnude.com/

Oasis1

More info here: https://blog.getnude.com/nude-acquired-by-tembo-money-affordaility-mortgage-broker/

Intrigued to hear what others think of this...

WillPS

Great news! I was looking to move to Nude after my Moneybox introductory rate finishes in the summer anyway, will be a no brainer if this is kept up by then.

I wonder if this will mean they get reinstalled on MSE's 'best buys' list?

WillPS

Just noticed - the monthly fee has been reduced to zero.

MoneySav876

win win - normally cost is going up not down and better rate!!

Oasis1

WillPS said:

I wonder if this will mean they get reinstalled on MSE's 'best buys' list?

You'd think so! With the no fee option available (they will have a Tembo Plus account charging £5/month for extra perks), it seems like a no brainer. I feel like I've missed a catch but combining with a mortgage broker makes a lot of sense - it's not like the LISA market is particularly crowded so gives them a clear edge.

SomeGuy2000

WillPS said:

Just noticed - the monthly fee has been reduced to zero.

It's because there will also be this new 'Tembo Plus' deal where there will be an even higher interest rate. However it will have a fee. The fee will be £5 a month for all new customers. Existing customers will be automatically enrolled but will keep the old £2 rate, unless they stop using Plus/rejoin later.

So whatever the rate will be, it will only be worth it if you have substantial amount in your LISA already.


I did a bit of quick maths so someone can correct me if I am wrong. Lets assume this new rate for Plus users would be 4.5%.  If you were paying the £5/month fee, you would need £30,000 in your LISA to match the 4.3% rate. If you're with the old £2/month rate, you'd only need £12,000 in your LISA to match 4.3%

WillPS

SomeGuy2000 said:

WillPS said:

Just noticed - the monthly fee has been reduced to zero.

It's because there will also be this new 'Tembo Plus' deal where there will be an even higher interest rate. However it will have a fee. The fee will be £5 a month for all new customers. Existing customers will be automatically enrolled but will keep the old £2 rate, unless they stop using Plus/rejoin later.

So whatever the rate will be, it will only be worth it if you have substantial amount in your LISA already.


I did a bit of quick maths so someone can correct me if I am wrong. Lets assume this new rate for Plus users would be 4.5%.  If you were paying the £5/month fee, you would need £30,000 in your LISA to match the 4.3% rate. If you're with the old £2/month rate, you'd only need £12,000 in your LISA to match 4.3%

There's no sign of this fee (£2 or £5) on the website. In fact, their homepage now reads "No introductory rates, no fees.".

I suspect if it comes it'll be optional.

EDIT: This seems to confirm it:
https://help.getnude.com/hc/en-gb/articles/22373878702609-What-is-Tembo-Plus

So 4.3% and no fee, or a mystery higher % with a £5 fee (£2 if you're an existing/previous Nude customer).

Oasis1

Still no news on the mystery higher interest rate with Tembo Plus...

SomeGuy2000

I did some more quick maths, so someone can correct me if I am wrong. 

These are the amounts you would need in your LISA to match the 4.3% rate with a £5 per month fee.

4.5	£30,000.00
4.6	£20,000.00
4.7	£15,000.00
4.8	£12,000.00
4.9	£10,000.00
5	£8,600.00

Oasis1

SomeGuy2000 said:

I did some more quick maths, so someone can correct me if I am wrong. 

These are the amounts you would need in your LISA to match the 4.3% rate with a £5 per month fee.

4.5	£30,000.00
4.6	£20,000.00
4.7	£15,000.00
4.8	£12,000.00
4.9	£10,000.00
5	£8,600.00

What do you mean by match?