The Verdict
Average Success Rate
Tembo Money 5-Year Avg The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.
Industry avg. The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
Tembo is one of the easiest and most enjoyable-to-use apps I've tested. So if it works for your goals, then this is an easy recommendation.
There's a Cash ISA with a chart-topping rate of interest on cash savings, right now. And there's a Cash Lifetime ISA, which also offers an extremely good rate of interest. One disappointment is that the Tembo Cash ISA isn't
If an ISA is flexible, you’re able to withdraw money and pay it back in, without it counting twice within your annual ISA allowance. It must be repaid within the same tax year it's withdrawn to be eligible, however.'flexible'
.
There's also a Stocks and Shares Lifetime ISA, which allows you to invest and potentially earn higher rates of growth by investing in the stock market. This is a more risky option than cash savings, but the potential rewards are also higher. As this is a Lifetime ISA, it's only available to those who meet a certain set of criteria - namely, that you're saving for your first home, you're between 18 and 40, and you're investing to buy a home (although you can also use this account to save for a windfall in your old age, too). Yes, you can have both a Cash Lifetime ISA and a Stocks and Shares Lifetime ISA. But you can only add in money to one each tax year. Remember, each time you apply for a new Lifetime ISA you will need to meet the eligibility criteria for opening an account. At Tembo, you can only open either a Cash Lifetime ISA or a Stocks and Shares Lifetime ISA. So if you want to open both types, you can open an account with us, then open another one with a different provider in the next tax year.
Although Tembo has primarily become known for its use in finding and applying for mortgages, you don't need to be working towards getting on the property ladder to use Tembo. Their Cash ISAs are available to all, whatever your saving purpose, so you can bag a great rate here without needing to use the mortgage advice service. That said, Tembo savers do get free access to the mortgage service so it's a great option if you are trying to save for a home.
The app is superb. It's a slick, first-class user experience, that is incredibly well-designed to get you from A to B with as little confusion or friction as possible.
The downsides? Tembo is unusual in that it offers no choice whatsoever on where your money gets invested. So, if you choose the Stocks and Shares Lifetime ISA option, it will be put into the Blackrock MyMap 5 Select ESG fund, whether you like that option or not. Tembo state that they have chosen this fund for its ethical characteristics, and its strong performance history. But it has a risk level of 5 (out of 7), which puts it in the medium-high risk category. If this fund doesn't suit your risk appetite, approach to investing, or you feel you could be getting better returns elsewhere, then it's not going to work for you. There's a fee for investing, which is slightly above average but still reasonable.
If you're a cash saver, there are almost no downsides. These are great rates from a top-notch provider and, unusually for a low-cost app, the customer service is also great in my experience.
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Pros
- 4.64% AER (variable)
- 4.33% AER (variable)
- Start saving with just £10
- Daily-accruing interest
- Choice of Stocks and Shares Lifetime ISA or Cash Lifetime ISA
- Start investing with just £1
- Outstanding, user-friendly app
- No platform fees for savers
- Responsive customer service
Cons
- Savings interest rates are variable, not fixed (so could go down)
- App-only (no desktop portal)
- Platform fee for investing is slightly above average: 0.35% p.a
- ISA isn't flexible
Fees
For savers, there are no downsides to Tembo fees. There's nothing to pay for opening an account, no fees for withdrawing your cash, and interest rates are some of the highest we've seen. In fact, for a Cash ISA, 4.64% AER (variable) is the top rate available in the UK right now (if you discount those platforms offering special promotional rates that only apply for the first few months). Tembo's Cash Lifetime ISA also offers an extremely high rate of interest, only slightly topped by Plum at the moment.
If you choose to invest your savings, via Tembo's Stocks and Shares Lifetime ISA, there is a platform fee to pay. Currently that's 0.35% per year of the total amount you have invested. That's not bad, but it's also not the cheapest rate for an investment account, especially considering you're getting no choice on how your money is invested with Tembo (there's just one fund).
Pros
- Top rate of interest paid on a Cash ISA: 4.64% AER (variable)
- Excellent interest rate on Lifetime ISA: 4.33% AER (variable)
- No introductory rates or penalties for withdrawing savings
- Unlimited easy access withdrawals
- Get started with just £10
Cons
- Variable interest rates can rise and fall
- Customers get just one day's notice of interest rate changes
- If you choose a Stocks and Shares ISA, platform fees are 0.35%
Account Opening
Getting signed up with Tembo is incredibly easy. In fact, this was one of the smoothest onboarding journeys I've ever come across. And I loved the design of the app, and tone of the instructions, which left me feeling confident and reassured.
Pros
- Five minute account opening
- Fully digital process
- No unnecessary jargon or waffle
- No unanswered questions - the app creators read my mind of everything I wanted to know
Research
As Tembo only offers one fund (the Blackrock MyMap 5 Select ESG fund) then there isn't a great deal for customers to do on the research front. It's this way or the highway. But you'll find that it's easy to understand the key features of the fund - its past performance statistics, risk level, and investment objectives - as that information is clearly presented and easy for beginners to get to grips with.
Pros
- Past performance data and other key information is easy to find and understand
Cons
- No other research tools available
Safety
Investments are protected by up to £85,000 by the Financial Services Compensation Scheme (FSCS). This protects your money if Tembo was to cease trading. (It doesn't cover losses incurred due to market performance.)
Tembo is not a bank but as a UK savings and investments provider, it is authorised and regulated by the Financial Conduct Authority (FCA). That means it has to abide by strict governance and compliance rules, designed to protect consumers from unsafe practices.
Tembo's partner banks, where it holds customers' savings, are also regulated by the FCA. Holding customer funds separately from Tembo's own, ensures that they remain ring-fenced and cannot be spent by Tembo for any reason.
Pros
- Regulated by the Financial Conduct Authority
- Investments covered by the Financial Services Compensation Scheme (FSCS)
- Money and investments held in ring-fenced accounts with FCA regulated banks, as per FCA rules
Education
Those looking for home-buying advice and guidance are well-served by Tembo's "Learn" resources. If you want to learn about investing, however, there's almost nothing at this point though.
Pros
- Small number of FAQ articles to help with understanding ISAs
Cons
- No wider investment education
Customer Service
Tembo's Trustpilot score is an "Excellent" 4.6 stars, from a large number of reviews. Customers are overwhelmingly positive about their experiences with the app, and customer services.
There is only one way to contact Beanstalk customer services and that's via email. There is no phone support or web/in-app chat function, which is a problem if you need immediate help as Beanstalk doesn't commit to replying to emails in less than one day. If you want to have a back-and-forward conversation, you can imagine how frustrating that would be.
Pros
- "Excellent" Trustpilot score
- Phone number to speak to a human
- Live chat with a customer services rep through the app
- Email address
- FAQs help section for answers to common questions
Cons
- Live chat responses could take 1-2 working days if they're busy
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Fact Checked 
Disclosure 
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Tembo Money 5-Year Avg 
Industry avg. 
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Verdict 
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Trading Platform: 
Account Opening: 
Research: 
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Customer Service: 
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