By Sohaib Shams
Tembo has launched a new regular saver account offering an 8 per cent interest rate, the highest currently available on the market. The account allows customers to deposit up to £250 each month, potentially earning £129.87 in interest over a full year if the maximum is saved from the first day of each month without withdrawals.
How the rate works
Interest is paid monthly at a base rate of 3 per cent, with an additional 5 per cent bonus paid at the end of the 12-month term. The bonus is only available to new customers. While withdrawals are permitted, taking money out will reduce the total interest earned.
Comparison with rivals
The Tembo account’s £250 monthly limit sits between Santander’s £200 cap and Chase’s £300 limit. Maxing out the Chase regular saver at 6.5 per cent would yield £125.53 in interest, while Santander’s equivalent pays £104. First Direct offers a 7 per cent regular saver with a £300 monthly limit, which could generate £136.50 in interest, but funds cannot be accessed during the term.
Flexibility and access
Unlike many regular savers, the Tembo account does not require customers to open a current account with the provider; it is accessed through the Tembo app. Savers can start with as little as £10 via bank payment or £25 by direct debit.
Chief executive comment
“Our new regular saver offers a market-leading 8 per cent rate, without requiring customers to move banks or open additional accounts. And with the flexibility to access their money whenever they need it, we're making it easier for people to build their savings without compromising on the things that matter to them,” said Richard Dana, chief executive of Tembo.
Wider savings landscape
The launch coincides with an expected announcement from John Healey to reverse changes to cash ISAs, scrapping a reduction of the annual limit to £12,000.
