A savings platform has launched a new deal offering what it claims is a “market-leading” 5.5% interest rate, but only for those who also take out a mortgage with the company. Tembo’s new HomeSaver account is aimed at first-time buyers, home movers and remortgagers trying to save for a deposit while securing a better mortgage deal.
The total 5.5% AER is made up of two parts: a variable 3% interest rate on balances up to £20,000, and a 2.5% fixed-rate bonus that savers receive after a year, as long as they go on to secure a mortgage through Tembo. The bonus, known as a “Tembonus”, is only paid once the mortgage is completed.
If a customer finds a better deal elsewhere, Tembo says it will either match the offer or still pay the bonus without requiring the customer to switch.
Experts at Moneyfactscompare say the offer could help savers but warn there are some important conditions to consider.
Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, told the Express: “It’s great to see Tembo taking a big step towards helping borrowers get onto the property ladder faster, especially as affordability remains a key concern.
“The headline 5.50% interest rate may certainly draw many savers’ attention, especially as it’s rare to find a savings account paying anywhere near 5%.
“Cahoot offers 5% on its Sunny Day Saver but only on balances up to £3,000, which is nowhere near enough for a deposit.
“However, it is crucial that savers understand all the conditions of the account before signing up.”
She continued: “The underlying rate, without the bonus, is just 3%, which doesn’t even outpace inflation.
“And because it’s variable, it could fall further. To even receive the 2.50% bonus, consumers must choose a qualifying mortgage with Tembo, and there are restrictions on the number of withdrawals.
“Their balance also can’t fall below £1,000. In addition, interest is only paid up to £20,000, meaning those in need of a higher deposit may still struggle.
“Whether consumers are stepping onto the ladder for the first time or looking to remortgage, it’s important that they seek independent advice to ensure that they make the best decision for their needs.”
Tembo said the account is part of its wider mission to help people buy homes sooner, especially as rising house prices and high deposit requirements put pressure on buyers.
Richard Dana, the Founder and CEO at Tembo, said: “Tembo’s mission is to help people buy their home sooner.
“With HomeSaver, our third savings launch of 2025, we’ve combined savings and mortgages into one simple product that gives customers more value for every pound they put aside.
“By combining a market-leading savings rate with our award-winning mortgage service, free to all savers, we’re giving first-time buyers and remortgagers an added Tembonus to help them on their way.”
The company says all mortgage advice is offered fee-free, and customers can still receive the bonus if Tembo cannot beat a better offer found elsewhere.
More information about the deal can be found here.