Tembo - are they any good

masonic

friolento said:

Baldeagle095 said:

Surely 4.80% in Tembo for 12 months is better than these promoted accounts of 5.25% for 3 months followed by 4.5% for 9 months?

which provider is that ISA with, please?

Trading212 is the one with an underlying 4.5% rate and a 3 month 5.25% bonus rate. There are similar products from Chip and a limited access one from Moneybox.

slinger2

friolento said:

Baldeagle095 said:

Surely 4.80% in Tembo for 12 months is better than these promoted accounts of 5.25% for 3 months followed by 4.5% for 9 months?

which provider is that ISA with, please?

I'm assuming theyre thinking of the alternative being 5.25% for 3 months and then transferring to e.g. Trading212 to get 4 5%.

Of course the reality is that these are all variable rate products and you've got little idea what the interest rates will be in 2 months time, let alone 12 months. 

masonic

gardigest said:

Baldeagle095 said:

Surely 4.80% in Tembo for 12 months is better than these promoted accounts of 5.25% for 3 months followed by 4.5% for 9 months?

I feel that Tembo's promise of a 4.8% rate for 12 months is a little misleading. They clearly state that it's not a fixed rate ISA. It's an easy access Cash ISA and therefore the 4.8% is variable (stated on their site). However, at the same time they say: "Rate doesn't drop after 12 months". This is the misleading part. I reckon this is referring to what generally happens with other ISAs whose rates drop drastically at maturity after one year (or more). Also, most banks have a FAQ section where it's clearly stated that the rate cannot change during the life of the product. Tembo do not have this FAQ. However, they do have another which confirms that the ISA rate HAS shifted over the last couple of months:
FAQ/Savings/ then about 25th question down: "What's the interest rate on Tembo's savings products?" You'll see the info in the paragraph "When did the rate last change?" Admittedly, though, they are doing well in keeping the rate relatively high - but it doesn't seem fixed to me. Please correct me if I'm wrong in my analysis because I, too, find their 4.8% promise very appealing. 

They have not pledged not to vary the rate of this variable rate product. They are just pointing out that they do not pay preferential rates to newbies which later get taken away.

gardigest

masonic said:

gardigest said:

Baldeagle095 said:

Surely 4.80% in Tembo for 12 months is better than these promoted accounts of 5.25% for 3 months followed by 4.5% for 9 months?

I feel that Tembo's promise of a 4.8% rate for 12 months is a little misleading. They clearly state that it's not a fixed rate ISA. It's an easy access Cash ISA and therefore the 4.8% is variable (stated on their site). However, at the same time they say: "Rate doesn't drop after 12 months". This is the misleading part. I reckon this is referring to what generally happens with other ISAs whose rates drop drastically at maturity after one year (or more). Also, most banks have a FAQ section where it's clearly stated that the rate cannot change during the life of the product. Tembo do not have this FAQ. However, they do have another which confirms that the ISA rate HAS shifted over the last couple of months:
FAQ/Savings/ then about 25th question down: "What's the interest rate on Tembo's savings products?" You'll see the info in the paragraph "When did the rate last change?" Admittedly, though, they are doing well in keeping the rate relatively high - but it doesn't seem fixed to me. Please correct me if I'm wrong in my analysis because I, too, find their 4.8% promise very appealing. 

They have not pledged not to vary the rate of this variable rate product. They are just pointing out that they do not pay preferential rates to newbies which later get taken away.

A big highlighted infoball with "Rate doesn't drop after 12 months" sounds pretty much like a pledge to me lol. You might say, yeah but it's a variable rate and everyone knows that. Hmm...I'd tend towards that they're quietly misleading those folks who can easily get lost in the world of finance. That said, they are offering very competitive rates...even if variable.

masonic

gardigest said:

masonic said:

gardigest said:

Baldeagle095 said:

Surely 4.80% in Tembo for 12 months is better than these promoted accounts of 5.25% for 3 months followed by 4.5% for 9 months?

I feel that Tembo's promise of a 4.8% rate for 12 months is a little misleading. They clearly state that it's not a fixed rate ISA. It's an easy access Cash ISA and therefore the 4.8% is variable (stated on their site). However, at the same time they say: "Rate doesn't drop after 12 months". This is the misleading part. I reckon this is referring to what generally happens with other ISAs whose rates drop drastically at maturity after one year (or more). Also, most banks have a FAQ section where it's clearly stated that the rate cannot change during the life of the product. Tembo do not have this FAQ. However, they do have another which confirms that the ISA rate HAS shifted over the last couple of months:
FAQ/Savings/ then about 25th question down: "What's the interest rate on Tembo's savings products?" You'll see the info in the paragraph "When did the rate last change?" Admittedly, though, they are doing well in keeping the rate relatively high - but it doesn't seem fixed to me. Please correct me if I'm wrong in my analysis because I, too, find their 4.8% promise very appealing. 

They have not pledged not to vary the rate of this variable rate product. They are just pointing out that they do not pay preferential rates to newbies which later get taken away.

A big highlighted infoball with "Rate doesn't drop after 12 months" sounds pretty much like a pledge to me lol. You might say, yeah but it's a variable rate and everyone knows that. Hmm...I'd tend towards that they're quietly misleading those folks who can easily get lost in the world of finance. That said, they are offering very competitive rates...even if variable.

This is what I see:

and:

If they are saying somewhere else that the rate does not drop after 12 months then that could come back and bite them, but it does not mean it will not drop during the 12 months.

Can you post a screeshot of the offending infoball?

slinger2

They have made comments like this https://www.tembomoney.com/learn/tembo-cash-isa-4.55-interest-rates

"Unlike other providers, your interest rate won’t drop after 12 months, if your balance falls below a certain amount or you make multiple withdrawals."

masonic

slinger2 said:

They have made comments like this https://www.tembomoney.com/learn/tembo-cash-isa-4.55-interest-rates

"Unlike other providers, your interest rate won’t drop after 12 months, if your balance falls below a certain amount or you make multiple withdrawals."

That's one to screenshot and use against them if they try to cut the rate any time after March 2026. Though they could have a cunning plan to cut the rate during the next 12 months to avoid the need to cut it after. For example, they could cut it to 1.75% at the end of this year and would still be able to say it is above the average of the big banks they used as their metric for calling it 'competitive'.

friolento

masonic said:

friolento said:

Baldeagle095 said:

Surely 4.80% in Tembo for 12 months is better than these promoted accounts of 5.25% for 3 months followed by 4.5% for 9 months?

which provider is that ISA with, please?

Trading212 is the one with an underlying 4.5% rate and a 3 month 5.25% bonus rate. There are similar products from Chip and a limited access one from Moneybox.

Not available to anyone who already had their ISAs for more than 3 months.

masonic

friolento said:

masonic said:

friolento said:

Baldeagle095 said:

Surely 4.80% in Tembo for 12 months is better than these promoted accounts of 5.25% for 3 months followed by 4.5% for 9 months?

which provider is that ISA with, please?

Trading212 is the one with an underlying 4.5% rate and a 3 month 5.25% bonus rate. There are similar products from Chip and a limited access one from Moneybox.

Not available to anyone who already had their ISAs for more than 3 months.

Yes, hence my earlier suggestion "If you can't be bothered to move the money after/every 3 months or have exhausted others' offers, then go for Tembo". But for those who have not yet benefited from those ISAs, they'd not be better off opting for Tembo instead taking them up first (probably).

gardigest

If they are saying somewhere else that the rate does not drop after 12 months then that could come back and bite them, but it does not mean it will not drop during the 12 months.

Can you post a screeshot of the offending infoball?

Even if the infoball doesn't say explicitly "our rate doesn't drop after 12 months" it's trying to give that impression.