Tembo HomeSaver Account 5.75% - advice/thoughts?

DIYhelp76

Hi,

I saw this Tembo Home Saver Account advertised online. Link at end of this post. Would welcome anyone's opinions on the account, including safety of any deposits with Tembo?

The account is for depositing a maximum of £20K - so well within the FCA protected £120K limit. And their site says savings are protected with them up to £120K

On first glance it seems like a good deal - interest rate is 4.75% (this is variable including a 1.75% bonus for 1st year).

It then includes an extra 1% (taking the rate to 5.75%) if you keep it for a year and then take out a mortgage through them. It says you just forfeit that extra 1% if you don't go on to take a mortgage out.

It says it is for anyone saving for a new home - first time buyers or second time buyers.

It says cash can be withdrawn any time without penalty and interest is applied daily.

At moment we may not take out a mortgage, but it seems you can still save with them "for a new home" and secure 4.75% and you just forfeit the extra 1% if you don't go on to take a mortgage out.

Am I missing something obvious as the 4.75% rate seems to better other rates currently available?

Would welcome any thoughts/opinions on this account/rate and/or Tembo itself.

https://www.tembomoney.com/savings/homesaver?is_retargeting=true&source_caller=ui&shortlink=u4yukumc&c=homesaver&pid=organic_search&af_xp=email&af_reengagement_window=30d

ToastLady

I opened one a few weeks ago, and have no intention at the moment, of buying a new home. There are various options in drop down list when applying, and am sure there is one to say you are not buying a new home, although the wording totally escapes me now.

They use Lloyd's Bank PLC to ring fence your cash at the moment. They have used other banks for their products.
Can't remember where I read it in their blurb, but it said that if they put your money in other banks it would show within the app. Don't take this bit as gospel, check for yourself.

App is easy to use. You have to add money via the app, which links to your nominated account. It's very simple to use, have had no problems whatsoever. I have yet to receive interest which is paid on 8th working day of the month. I believe you get interest paid at the base rate monthly, and the bonus rate is paid after 1 year. (The bonus rate for doing a mortgage, I haven't gone into, but won't be paid until you take out a mortgage with them. You'd have to check all the T's and C's for all info on that.) There is a breakdown within the app of different interest payments due.

There is a list of payment dates for basic rate interest payments, copied and pasted below.

Interest payment dates for 2026:

• January 13th 2026
  
• February 11th 2026
  
• March 11th 2026
  
• April 14th 2026
  
• May 13th 2026
  
• June 10th 2026
  
• July 10th 2026
  
• August 13th 2026
  
• September 10th 2026
  
• October 12th 2026
  
• November 11th 2026

December 10th 2026

ToastLady

Forgot to say withdrawals are not instant, Tembo say 2 days. I did a trial and it took one day, but it's better to think of 2 days to be on safe side.

35har1old

https://forums.moneysavingexpert.com/discussion/comment/81983928#Comment_81983928

How much can you deposit per month?

masonic

https://forums.moneysavingexpert.com/discussion/comment/81985065#Comment_81985065

As much as you like up to a maximum account balance of £20k.

ToastLady

Further, minimum withdrawal is £10.
Also, if you are going for the Homesaver bonus (5.75%), you can only make 3 withdrawals or the bonus will be forfeited. As already said, I have no interest in getting a mortgage, so do your own research and check out all the T's & C's thoroughly, so that you know where you stand.
The app shows a handy slider to show exactly how much you can add to the account. I don't think it will let you go over £20K, but the T's and C's are quite clear on this. (I do know that some managed to get in at £25K, but that has now gone).

keepthegreen

anybody used them for a mortgage as well? Mine is up for renewal so seems like a good option

poolboy

I just opened a tembo account, thanks for heads up. Their reviews for mortgages are good, but for savings...dyor.

I ll put in 1k as a trial, once interest is credited I ll max out at 20k. 4.75 is a top rate, chase boosted 4.5 and more flexible tho, instant transfers, full interest monthly.

Tbh both accounts you can open in 2 mins and try them out.

ToastLady

https://forums.moneysavingexpert.com/discussion/comment/81985411#Comment_81985411

Re Chase, you only get that rate if you are a new customer. Been with them a while and getting a paltry 2.25%, needless to say I haven't got a penny in savings with them at the moment. Pity, as they are great to use. Using Zopa at 4.45% for me at the moment, also great and instant transfers, but that rate no longer available to new customers/anyone who didn't take the offer up at the time.

friolento

I have just opened the HomeSaver as I was attracted by the interest rate. Made a test deposit via Open Banking and learn that it is not credited until the next business day 😯. That's not good, I need instant deposits.

I suppose withdrawals aren't instant, either? EDIT: have read up now, and yes, they are not instant.

Will be closing the account again as soon as my initial deposit has been credited. The account looks good for people saving towards a deposit as they are unlikely to need truly instant deposits and withdrawals but I do need those, to shuffle money to and from my current account. Currently still have the 4.45% Zopa for a few more months but that one is of course NLA now.

ToastLady

https://forums.moneysavingexpert.com/discussion/comment/81985505#Comment_81985505

Any deposits I've made have been credited that day, but always been done on a weekday.
Totally with you on needing an account for instant access, Zopa is great for another few months anyway.