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

WillPS

@SomeGuy2000 means the amount you'd need to have saved to offset the fee with the additional interest earned, I think.

SomeGuy2000

yes.  So if the rate they offer is 4.5 and you pay £5 a month, You would need to have £30,000 saved to match a 4.3% savings account with no fee.

alternate

Does anyone know which bank they use to provide their lifetime ISA?

SomeGuy2000

I think it's split between Barclays/Virgin Money (which might soon belong to Nationwide)

WillPS

Oasis1 said:

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

Just spotted buried away on MSE:

You'll still pay the £2/mth fee in exchange for the yet-to-be-released 'Tembo Plus' – this will give a higher interest rate of 4.5%, plus other features such as mortgage advice (the Plus offering is planned to launch 'in a few weeks' time').

Going by the calculations offered by @SomeGuy2000 upthread, you'd need a balance of at least £30k to make the £5 fee worthwhile. Perhaps given Moneybox's bump today they might offer a little more or a lower fee.

WillPS

Tembo are now offering 'cashback' on LISA transfers, up to £300 (for transferred balances of £50k+):

https://www.tembomoney.com/savings/lifetime-isa-transfer-bonus

I think this is a first. Great to see some competition between LISA providers.

dcs34

Literally had my transfer complete midday June 19th! Damn my unusual proactive efficiency. Will message Tembo and see if there's any flex.

WillPS

I have a bonus interest rate at Moneybox which needs me to keep my account with them until 1st August. They also have a sweepstake promotion where you get 1 entry per £100 deposited in your LISA by July 5th.

I'm thinking I'll deposit my full whack by that July date, which should take my account balance over the next Tembo cashback threshold (getting me another £25). I'll then initiate a transfer on the last day of July.

It's OK to deposit your full subscription then transfer away in the same tax year, isn't it?

WillPS

https://www.tembomoney.com/savings/cash-lifetime-isa
Tembo are now offering 4.75% to new and existing customers. According to the FAQ the Plus product has been cancelled - if I was a Nude customer who'd paid £14 for nothing I'd be seeking a refund!

WLewer98

Tembo state on their website '4.75% AER (variable) with no drop-off after year one'.

Does this mean I would be guaranteed 4.75% on my LISA balance for at least a full year?