Bank increases interest rate on Cash ISA to 4.3% and earns ‘excellent’ rating | Personal Finance | Finance
An expert has said one account stands out as having a “market-leading” rate on the Fixed Rate Cash ISA table. Tembo Money has increased the interest on its 1-year Fixed Rate Cash ISA to 4.3% AER, the deal has earned an “excellent” Moneyfactscompare rating.
Commenting on the deal, Adam French, head of news at Moneyfactscompare.co.uk, said: “Tembo Money has increased the rate on its 1-year Tembo Cash ISA – Fixed Rate. Now paying 4.30% AER, a market-leading rate when compared against other fixed rate ISAs with similar terms currently available.
“It requires a minimum £500 deposit and pays interest on maturity. Savers can benefit from some flexibility with earlier access permitted, but subject to a 90-day loss of interest penalty.”
The new rate includes 4.30% gross / 4.30% AER payable on maturity. It has a notice/ term of one year and a minimum opening amount of £500.
Currently, you can invest £20,000 a year into this account as this is the ISA allowance. However, from April 2027, this will be cut to just £12,000 after Rachel Reeves announced the change during the Budget.
What else is out there?
Only one account lies ahead of Tembo in the chart. The Investec Bank plc1-Year Fixed Rate Cash ISA takes top spot.
The account has many of the same features as the Tembo account with 4.30% AER, also putting it at a market leading rate. You’ll need a minimum of £1000 to open the account.
Sitting just below the top two performers is the UBL UK1 Year Fixed Rate Cash ISA. This account offers 4.28% AER but you’ll need £2000 to open the account. Withdrawals are not allowed but early access is permitted.
