There are two ways to grow your deposit with a Tembo Lifetime ISA — save it or invest it.
If you save in cash, your money and the government bonus gains interest over time. Nice and simple!
If you choose to invest, your money and the 25% government bonus will go into a fund which buys shares of companies and other assets. Investing tends to be a good long term option (think five years plus), but the value of your investment could go down, which would mean it could take longer to reach your goal. It all depends on how much risk you want to take and when you want to buy your home.
Either way, we’ve got options for you:
Tembo Cash Lifetime ISA
- Save into a cash account with Tembo, and we'll hold the money on your behalf with our partner bank(s).
- Get a 25% government bonus on your cash savings, up to £1,000 each year.
- Earn 4.3% interest AER (annual equivalent rate — aka: per year) on the balance of your account, including the 25% government bonus.
- Open your account at least 12 months before you plan on buying a home.
- Bonus and interest are tax-free.
- Eligible for FSCS-protection up to £85,000.
- Give 45 days notice before withdrawing.
- 25% early withdrawal charge to the government.
Tembo Stocks & Shares Lifetime ISA
- Invest in the BlackRock MyMap 5 Select ESG (ethical, sustainable and governance) Fund.
- Get a 25% government bonus on the money you put into your account, up to £1,000 each year.
- You don't earn a fixed rate of interest, instead you invest into assets that can go up or down.
- Open your account at least 12 months before you plan on buying a home.
- Bonus and return on investments are tax-free.
- Eligible for FSCS-protection up to £85,000.
- Give 30 days notice before withdrawing.
- 25% early withdrawal charge to the government.