Tembo offers a market-leading Lifetime ISA that allows first-time home buyers to save up to £4,000 annually with a 25% government bonus, providing a tax-free method to accumulate a house deposit. The platform features a user-friendly app for account management and fund transfers, enabling users to maximize their savings with a competitive interest rate of 4.75% AER while receiving personalized guidance throughout the home-buying process.
Funding
Funding not disclosed
Founders
Product
Problem
Saving for a first home in the UK is challenging due to rising property prices and the difficulty of accumulating a sufficient deposit. Traditional savings accounts often offer low interest rates, making it harder for first-time buyers to reach their savings goals quickly. The complexity of navigating various savings schemes and mortgage options can also be overwhelming.
Solution
Tembo provides a Lifetime ISA (LISA) designed to help first-time home buyers in the UK maximize their deposit savings through a combination of government bonuses and competitive interest rates. The platform offers both a Cash LISA and a Stocks & Shares LISA, allowing users to choose based on their risk appetite and timeline. Tembo's mobile app simplifies account management, facilitates fund transfers, and offers personalized guidance, while its mortgage service provides expert advice and tools to improve affordability.
Target Audience
The primary target audience is first-time home buyers in the UK aged 18-39 who are looking for a tax-efficient and high-yield savings solution to accumulate a deposit for their first property.
Features
- Market-leading interest rate of 4.75% AER (variable) on the Cash LISA, helping users earn more on their savings compared to competitors.
- 25% government bonus on contributions up to £4,000 annually, providing a tax-free boost to savings.
- Choice between a Cash LISA for lower-risk savings and a Stocks & Shares LISA for potential higher returns through investment in an ESG fund.
- Mobile app for easy account management, tracking progress, and making deposits.
- Fee-free mortgage advice from an award-winning mortgage service, helping users navigate the mortgage process.
- Tools within the app to compare mortgage rates and obtain a Mortgage in Principle.
- FSCS protection up to £85,000, ensuring the safety of users' savings.
- Option to transfer existing LISA accounts to Tembo to take advantage of the higher interest rate.