Tembo has raised the underlying rate on its HomeSaver account from 3% to 4% annual equivalent rate (AER), offering savers a higher return.
From today, HomeSaver customers get a 4.00% AER variable on balances up to £20,000 and a 1.5% AER fixed 12-month bonus when they complete a mortgage through Tembo’s mortgage service, adding up to 5.5% annual equivalent rate (AER) for those eligible.
Customers who save with HomeSaver and then complete a mortgage through Tembo now receive a total of 5.5% AER, which exceeds the top easy-access savings rates listed by MoneySavingExpert at 4.17% to 4.51% annual equivalent rate (AER).
The underlying tracker rate now sits at 0.08% below the Bank of England base rate, previously 1.04% below.
The increase comes without any new fees, restrictions or changes to the account.
Richard Dana, founder and CEO at Tembo, said: “Tembo’s mission is to help people buy their home sooner.
“With this latest enhancement to HomeSaver, we’re offering one of the most competitive savings rates in the UK – while giving customers the expert mortgage support they need to take the next step on their home-buying journey.”
