The move by the savings and mortgage platform matches the Bank of England base rate, which was cut by 25bps to this level yesterday. It is the second rate cut the BoE has made this year, the other coming in August.

The firm says the rise “is not time-limited” and is part of a range of improvements it has made to its service.

It will also now offer its mortgage service fee-free to customers who hold one of its LISAs, which can amount to a saving of up to £749.

Additionally, from October, all of the firm’s cash LISA savers will pay no fees.

Tembo chief executive Richard Dana says: “The Bank of England making a second long-awaited cut to the base rate yesterday spells good news for borrowers, but is a kick for those saving towards deposits and other life goals.”