A savings provider has boosted the interest on one of its accounts to a “market-leading” 5.75%. Savers with Tembo can get a 4.55% AER interest rate on their cash and unlock a 1.20% bonus rate if they use the platform’s whole of market mortgage service.
Richard Dana, Temobo’s founder and chief executive, said: “We speak to thousands of customers every week who are saving toward a mortgage milestone. That might be a first-time buyer stashing enough aside for a deposit, a family saving to move from their one-bedroom apartment to a place with a garden, or a homeowner hoping to overpay and reduce their debt when they remortgage.
“We believe these customers deserve an outstandingly good savings rate from us while they work towards that mortgage milestone.”
Under Tembo’s offer, HomeSaver account holders will earn 4.55% AER (variable) on savings up to £25,000. This means the rate can go down as well as up.
If they choose to use Tembo’s mortgage advice service within three years they can unlock a further 1.2% AER (fixed) bonus on the balance for 12 months.
The bonus rate is fixed for 365 days from the date the first deposit is made. After that period, the HomeSaver bonus rate won’t gain any extra interest.
Deposits are held in a secure Lloyds Bank plc Trust account with full FSCS protection from the Financial Services Compensation Scheme. Interest is paid monthly.
Mr Dana said the move would give customers money back directly via the HomeSaver bonus, rather than handing cash to Facebook and Google for marketing.
He added: “With the highest savings rates on the market and some of the highest-rated service levels too, this product offers truly amazing value.
“If, for whatever reason, customers don’t use the mortgage service, their savings will be earning a market-leading 4.55% AER rate.”
The CEO said Tembo HomeSaver customers can earn an extra £300 if they choose to use the mortgage service, which he said is free to Tembo Savings customers.