Tembo Homesaveer - FSCS Protection

skray

Hi

MSE > Easy Access Savings > The Tembo Homesaveer* account pays 4.55% ….
FSCS protection: Deposited funds in the HomeSaver are held in a 'client money' account, separate from Tembo's own money with Lloyds Bank. This is a fully regulated UK bank and therefore covered by the FSCS.

When I select the link "Tembo Homesaveer* " being redirected to www.tembomoney.com - there is separate section on FSCS protection, e.g. (not mentioning Lloyds at all)
Mortgages and Insurance: FCA registration number 952652
Tembo Savings Limited: FRN 928010
account information services provider: FRN 913654

It seems Tembo Savings Limited already registered with FCA in its own right, why does MSE saying its client money held with Lloyds Bank which is FCA regulated. Any reason why the Easy Access account not protected by Tembo directly.

Thanks

eskbanker

FCA permissions are granular, so the fact that a firm is regulated doesn't in itself imply deposit-taking permission.

Where is my money held?

Tembo uses national, trusted banks to hold client funds deposited into Tembo ISA accounts. This is due to strict rules prescribed by the FCA to ensure that customer funds are separate from our funds and ring-fenced. This means that if Tembo were to cease operating, your funds are protected. Each of our partner banks is also FSCS-protected, which means that if one of these banks were to go into default, your money would be protected up to £120,000 per eligible person, per bank.

https://www.tembomoney.com/savings/homesaver

Albermarle

Most savings providers have a banking licence ( they take savings in and lend money out), and the FSCS £120K compensation applies directly with the savings provider.

Some newer savings providers, like Tembo, are not themselves banks, and effectively keep your money with other banks. Typically these providers are using their savings account offers to build up their customer contact base for their main business activity, which in Tembo's case is as a mortgage broker.