Tembo ISA interest rate reduction

epm-84

Gambler said:

epm-84 said:

clairec666 said:

epm-84 said:

clairec666 said:

jungleboy123 said:

i keep playing the switchy game and i have burned all my newbie accounts. I started the year with T212, then plum then moneybox and finally thought sod it ill go tembo and accept a lower rate. I did not expect this big drop from the 0.25% cut.

No idea what im gonna do now but will keep an eye on this thread.

Tembo's still better than all the "without bonus" rates, I think? Even though the big drop is annoying, they still might be worth sticking with. Check in a couple of weeks, because at the moment there are some better rates (Ford Money flexible ISA, and quite a few limited withdrawal accounts) but they might yet drop after the latest base rate cut. Tembo is still showing as 4.64% on moneyfactscompare as it doesn't drop to 4.1% until tomorrow.

At the moment it appears Aldermore have the highest rate on their limited access accounts - 4.4% or 4.2% depending which one you go for. Kent Reliance have 4.38% on their Easy Access ISA issue 59, as long as you're over £1000 in credit. (If you don't have over £1000 then you're not going to gain much by switching). 

I wonder why MSE include Plum on their best Cash ISA page - offering 4.41% which includes a 12 month bonus, but the rate drops after 3 withdrawals. Yet they don't mention Aldermore's 4.4%, which beats Kent Reliance and Charter, even if it's more restricted. It's no wonder some people think that MSE are recommending Trading212, Chip, Plum etc., opposed to listing them for having a market leading rate - if MSE aren't keeping track of every provider.

I suspect Aldermore and Kent Reliance haven't responded to the latest base rate cut, so they could drop to around 4-4.1%.

MSE's ISA page tends to focus on either easy access ISAs (i.e. no limitations on withdrawals) or fixed rate (no withdrawals). No mention of limited withdrawal ISAs at all, so the likes of Principality's 5 Access ISA get missed out. I rather think that Plum's rate drop for 3+ withdrawals makes them more akin to other limited withdrawal ISAs so they perhaps shouldn't feature on the easy access section.

Moneyfactscompare is a more comprehensive list, but it isn't displayed as well, and you have to look at each account separately to find the important details (is it flexible, minimum deposit, etc.) MSE makes all of this clearer.

Kent Reliance withdrew their previous issues of fixed term ISAs on 8 August and launched new ones with lower interest rates. It doesn't appear they've done anything with Easy access cash ISA - issue 59, as the rate was last changed at the end of June. The issue 58 still has higher rates than issue 59 but it was withdrawn in June. That suggests if you open issue 59 it will likely retain a higher rate than whatever issue 60 is, whenever they choose to launch their next new Easy Access one.

Kent Reliance have had leading rates in the past, but they don't tend to remain leading for more than a few months at a time.

https://www.kentreliance.co.uk/interest-rates

Thanks for the link. Issue 60 is showing 4.32% as at 22 August. Does this mean this rate will not be reducing following the base rate cut that took place prior to 22 August?

If they launched issue 60 since the rate cut, then it's unlikely they'll reduce it because of that. Although, as with any flexible rate the provider can cut or increase it at any time, as long as it doesn't conflict with the product's T&Cs.

Gambler

epm-84 said:

Gambler said:

epm-84 said:

clairec666 said:

epm-84 said:

clairec666 said:

jungleboy123 said:

i keep playing the switchy game and i have burned all my newbie accounts. I started the year with T212, then plum then moneybox and finally thought sod it ill go tembo and accept a lower rate. I did not expect this big drop from the 0.25% cut.

No idea what im gonna do now but will keep an eye on this thread.

Tembo's still better than all the "without bonus" rates, I think? Even though the big drop is annoying, they still might be worth sticking with. Check in a couple of weeks, because at the moment there are some better rates (Ford Money flexible ISA, and quite a few limited withdrawal accounts) but they might yet drop after the latest base rate cut. Tembo is still showing as 4.64% on moneyfactscompare as it doesn't drop to 4.1% until tomorrow.

At the moment it appears Aldermore have the highest rate on their limited access accounts - 4.4% or 4.2% depending which one you go for. Kent Reliance have 4.38% on their Easy Access ISA issue 59, as long as you're over £1000 in credit. (If you don't have over £1000 then you're not going to gain much by switching). 

I wonder why MSE include Plum on their best Cash ISA page - offering 4.41% which includes a 12 month bonus, but the rate drops after 3 withdrawals. Yet they don't mention Aldermore's 4.4%, which beats Kent Reliance and Charter, even if it's more restricted. It's no wonder some people think that MSE are recommending Trading212, Chip, Plum etc., opposed to listing them for having a market leading rate - if MSE aren't keeping track of every provider.

I suspect Aldermore and Kent Reliance haven't responded to the latest base rate cut, so they could drop to around 4-4.1%.

MSE's ISA page tends to focus on either easy access ISAs (i.e. no limitations on withdrawals) or fixed rate (no withdrawals). No mention of limited withdrawal ISAs at all, so the likes of Principality's 5 Access ISA get missed out. I rather think that Plum's rate drop for 3+ withdrawals makes them more akin to other limited withdrawal ISAs so they perhaps shouldn't feature on the easy access section.

Moneyfactscompare is a more comprehensive list, but it isn't displayed as well, and you have to look at each account separately to find the important details (is it flexible, minimum deposit, etc.) MSE makes all of this clearer.

Kent Reliance withdrew their previous issues of fixed term ISAs on 8 August and launched new ones with lower interest rates. It doesn't appear they've done anything with Easy access cash ISA - issue 59, as the rate was last changed at the end of June. The issue 58 still has higher rates than issue 59 but it was withdrawn in June. That suggests if you open issue 59 it will likely retain a higher rate than whatever issue 60 is, whenever they choose to launch their next new Easy Access one.

Kent Reliance have had leading rates in the past, but they don't tend to remain leading for more than a few months at a time.

https://www.kentreliance.co.uk/interest-rates

Thanks for the link. Issue 60 is showing 4.32% as at 22 August. Does this mean this rate will not be reducing following the base rate cut that took place prior to 22 August?

If they launched issue 60 since the rate cut, then it's unlikely they'll reduce it because of that. Although, as with any flexible rate the provider can cut or increase it at any time, as long as it doesn't conflict with the product's T&Cs.

epm-84 said:

Gambler said:

epm-84 said:

clairec666 said:

epm-84 said:

clairec666 said:

jungleboy123 said:

i keep playing the switchy game and i have burned all my newbie accounts. I started the year with T212, then plum then moneybox and finally thought sod it ill go tembo and accept a lower rate. I did not expect this big drop from the 0.25% cut.

No idea what im gonna do now but will keep an eye on this thread.

Tembo's still better than all the "without bonus" rates, I think? Even though the big drop is annoying, they still might be worth sticking with. Check in a couple of weeks, because at the moment there are some better rates (Ford Money flexible ISA, and quite a few limited withdrawal accounts) but they might yet drop after the latest base rate cut. Tembo is still showing as 4.64% on moneyfactscompare as it doesn't drop to 4.1% until tomorrow.

At the moment it appears Aldermore have the highest rate on their limited access accounts - 4.4% or 4.2% depending which one you go for. Kent Reliance have 4.38% on their Easy Access ISA issue 59, as long as you're over £1000 in credit. (If you don't have over £1000 then you're not going to gain much by switching). 

I wonder why MSE include Plum on their best Cash ISA page - offering 4.41% which includes a 12 month bonus, but the rate drops after 3 withdrawals. Yet they don't mention Aldermore's 4.4%, which beats Kent Reliance and Charter, even if it's more restricted. It's no wonder some people think that MSE are recommending Trading212, Chip, Plum etc., opposed to listing them for having a market leading rate - if MSE aren't keeping track of every provider.

I suspect Aldermore and Kent Reliance haven't responded to the latest base rate cut, so they could drop to around 4-4.1%.

MSE's ISA page tends to focus on either easy access ISAs (i.e. no limitations on withdrawals) or fixed rate (no withdrawals). No mention of limited withdrawal ISAs at all, so the likes of Principality's 5 Access ISA get missed out. I rather think that Plum's rate drop for 3+ withdrawals makes them more akin to other limited withdrawal ISAs so they perhaps shouldn't feature on the easy access section.

Moneyfactscompare is a more comprehensive list, but it isn't displayed as well, and you have to look at each account separately to find the important details (is it flexible, minimum deposit, etc.) MSE makes all of this clearer.

Kent Reliance withdrew their previous issues of fixed term ISAs on 8 August and launched new ones with lower interest rates. It doesn't appear they've done anything with Easy access cash ISA - issue 59, as the rate was last changed at the end of June. The issue 58 still has higher rates than issue 59 but it was withdrawn in June. That suggests if you open issue 59 it will likely retain a higher rate than whatever issue 60 is, whenever they choose to launch their next new Easy Access one.

Kent Reliance have had leading rates in the past, but they don't tend to remain leading for more than a few months at a time.

https://www.kentreliance.co.uk/interest-rates

Thanks for the link. Issue 60 is showing 4.32% as at 22 August. Does this mean this rate will not be reducing following the base rate cut that took place prior to 22 August?

If they launched issue 60 since the rate cut, then it's unlikely they'll reduce it because of that. Although, as with any flexible rate the provider can cut or increase it at any time, as long as it doesn't conflict with the product's T&Cs.

Thanks. Just started to apply but looks like Tembo can only be transferred manually by completing a transfer form and posting.

ivormonee

Since Friday the anticipated shake out has continued. The best rates now for access cash ISAs that allow the same rate for transfers in are in the region of 4.3%. (The higher rates c.4.4% either don't apply to transfers in or the rates have been announced that they will be dropped shortly).

The extended transfer time due to Tembo requiring manual processing of paper forms may even mean that by the time a transfer is due to complete more rate reductions might be announced.

LoveMS

I've just inquired with Tembo about their 1-year Fixed Rate Cash ISA at 4.27% AER, which seems to be one of the best options right now. I currently have a Tembo Flexible Cash ISA, and the original interest rate was 4.8% (variable), but it has quickly fallen to 4.1%!

When I asked if I could open the 1-year Fixed Rate Cash ISA and transfer my funds from the Flexible Cash ISA, I was shocked to hear that they said, 'they do not support this now.' This feels greedy and mean. Basically, I can't transfer my Cash ISA within Tembo, and it's my money!

Is this common practice? I'm really fuming about it!

epm-84

LoveMS said:

I've just inquired with Tembo about their 1-year Fixed Rate Cash ISA at 4.27% AER, which seems to be one of the best options right now. I currently have a Tembo Flexible Cash ISA, and the original interest rate was 4.8% (variable), but it has quickly fallen to 4.1%!

When I asked if I could open the 1-year Fixed Rate Cash ISA and transfer my funds from the Flexible Cash ISA, I was shocked to hear that they said, 'they do not support this now.' This feels greedy and mean. Basically, I can't transfer my Cash ISA within Tembo, and it's my money!

Is this common practice? I'm really fuming about it!

Not specifically relating to ISAs - it is common for financial organisations to offer some products to existing customers only, while others may be offered to new customers only. It extends to other industries too - it happens with mobile phone contracts too.

Gambler

LoveMS said:

I've just inquired with Tembo about their 1-year Fixed Rate Cash ISA at 4.27% AER, which seems to be one of the best options right now. I currently have a Tembo Flexible Cash ISA, and the original interest rate was 4.8% (variable), but it has quickly fallen to 4.1%!

When I asked if I could open the 1-year Fixed Rate Cash ISA and transfer my funds from the Flexible Cash ISA, I was shocked to hear that they said, 'they do not support this now.' This feels greedy and mean. Basically, I can't transfer my Cash ISA within Tembo, and it's my money!

Is this common practice? I'm really fuming about it!

It's for new money only, otherwise I would have done what you wanted to.

clairec666

LoveMS said:

I've just inquired with Tembo about their 1-year Fixed Rate Cash ISA at 4.27% AER, which seems to be one of the best options right now. I currently have a Tembo Flexible Cash ISA, and the original interest rate was 4.8% (variable), but it has quickly fallen to 4.1%!

When I asked if I could open the 1-year Fixed Rate Cash ISA and transfer my funds from the Flexible Cash ISA, I was shocked to hear that they said, 'they do not support this now.' This feels greedy and mean. Basically, I can't transfer my Cash ISA within Tembo, and it's my money!

Is this common practice? I'm really fuming about it!

The fixed rate ISA is for new deposits only, no transfers in. It's not just Tembo - for example Trading 212 have a lower rate for transfers in, and Skipton have an ISA for this year's deposits only.

Don't know their reasons for doing this, but if you don't like it you can vote with your feet and take your money elsewhere.

Worth mentioning that Tembo's FAQs for this account are contradictory - they say "If you already have an ISA, you can also transfer this to Tembo", but also "Can I transfer my existing ISA? No - we only accept new deposits into our Fixed rate Cash ISA."

ivormonee

On 29th August I requested my cash ISA to be transferred from Tembo to Charter Savings. Not heard anything for three weeks so called them on 19th September. All they seemed to be able to tell me was that it was "in progress" and I "should allow 30 days"!

Seems Tembo haven't quite caight up with the age of digitalisation. Charter not accepting the transfer form electronically didn't help either.

ivormonee

Update (or lack of!) ... Charter have still not transferred my cash ISA from Tembo, as requested of them on 29th August. So it's now been 30 days, and counting ... !

MeteredOut

ivormonee said:

Update (or lack of!) ... Charter have still not transferred my cash ISA from Tembo, as requested of them on 29th August. So it's now been 30 days, and counting ... !

I'm going through exactly the same. As of last Tembo were still saying they had not received the letter Charter sent them on 27th August. Charter also sent them an email on 17/9. Am chasing with both Charter and Tembo - neither are giving me any confidence things are progressing.