Tembo ISA interest rate reduction

epm-84

They've just announced:
"From Monday 18th August 2025, the rate on our Cash ISA - Easy Access will change from 4.64% AER (variable) to 4.10% AER (variable).

Last week, the Bank of England lowered its base rate from 4.25% to 4.00%. As this affects the interest rates that providers like Tembo can offer, we’re adjusting our Cash ISA - Easy Access rate to reflect this change. 

We always strive to deliver the best savings rates to our customers. That's why your new Cash ISA - Easy Access rate is still above the base rate, and over 5-years you'll earn over £400 more on average with us vs saving with the UK's biggest four banks.

As ever, we don't use any introductory bonus, so your rate won't automatically drop just because you've been with us for 12 months."

Interesting way of saying the BOE rate reduced by 0.25%, but we're reducing our rate by 0.54%

clairec666

"... to reflect this change" - interesting interpretation there. A fair reflection would be a 0.25% cut, not 0.54.

I generally like Tembo because they don't go in for silly newbie bonuses, but my opinion has dropped a little with this disproportionate rate cut. At least their LISA rate has been cut by a more reasonable 0.23%.

El_Torro

4.10% isn't a terrible rate, especially if you can't take advantage of the newbie bonuses that are out there. Looks like Tembo are happy with the amount being held in their Cash ISAs and can afford / want to lose some customers.

RunsFromRobots

Annoyingly they have a fixed rate ISA at 4.27% but you can't transfer across into it 🤦‍♂️

OrangeBlueGreen

clairec666 said:

"... to reflect this change" - interesting interpretation there. A fair reflection would be a 0.25% cut, not 0.54.

I generally like Tembo because they don't go in for silly newbie bonuses, but my opinion has dropped a little with this disproportionate rate cut. At least their LISA rate has been cut by a more reasonable 0.23%.

Same here. I thought no nonsense with them but now I don’t feel the same with 0.54 drop. 

salfordphil

Deffo left a nasty taste in my mouth. Will be looking to transfer elsewhere asap

nmjams

I just transferred in last week from chip, I'm going elsewhere as I see something better.

epm-84

El_Torro said:

4.10% isn't a terrible rate, especially if you can't take advantage of the newbie bonuses that are out there. Looks like Tembo are happy with the amount being held in their Cash ISAs and can afford / want to lose some customers.

Yeah I think they've set it based on what Trading212 now offer those whose introductory bonus has expired, rather than using the BOE base rate change. Although, it should be noted the Tembo ISA is not flexible. So you'd hope it would be higher than flexible products from competitors. 

Ch1ll1Phlakes

BillTee said:

I'm trying to transfer from Tembo EA ISA to Cynergy but Tembo doesn't appear on Cynergy drop down list of institutions. Has anyone else had this problem?

To transfer an ISA to Cynergy the ISA provider you are transferring from needs to be part of the BACS ISA transfer system (see screenshot below of Cynergy page) which Tembo is not. From what I have read I don't think you will be able to transfer from Tembo to Cynergy, though I would message Cynergy directly to check this.


Edit: If you have the patience, you could transfer from Tembo to a provider on the list provided by Cynergy, then from this intermediate provider to Cynergy. I know this is a lot of effort and time but it's the only work around if you can't do a direct transfer from Tembo to Cynergy.

Ceresia

I have been with Tembo for a couple of months and thought I’d found a longer-term home for my cash ISA. With the recent BoE rate drop, I knew the Tembo rate would reduce and expected something around the 4.4% mark. The substantial drop of over half a percent is forcing me to look elsewhere yet again. Had it dropped to 4.3%, I would have taken the hit and stayed with Tembo. I’m going to review the situation over the next week and watch to see if those providers I am considering also drop their rates.

clairec666

Ceresia said:

I’m going to review the situation over the next week and watch to see if those providers I am considering also drop their rates.

Good plan - a lot of the higher rates right now might drop below Tembo's 4.1% once everything shakes out. Don't rely on lists like moneyfactscompare at the moment because they don't indicate any rate cuts that have already been announced.