Tembo has added a cashback bonus payment of up to £300 to its Cash Lifetime ISA (LISA). 

Customers transferring a LISA of £5,000 or more to Tembo from another provider will receive cashback until 30 September 2024, in addition to its underlying interest rate of 4.3% (AER variable). 

The deal was first introduced by Tembo earlier this year in June and expired on 31 July. 

The cashback bonus will be paid to the Cash LISA account 12 months after funds are received by Tembo.

Customers must hold their Cash LISA for a minimum of 12 months for the offer to be valid.

The cashback payment takes the AER variable to the equivalent of up to 5.07% depending on the value of the transfer.

The FCA has found that on average, UK savings only earn 1.25% interest. 

One of the key benefits of Lifetime ISAs is that savers can get a 25% boost from the government to their savings up to a maximum of £1,000 per year.  

Tembo chief executive officer Richard Dana says: “We’re delighted to, once again, offer a further incentive for first-time buyers, by offering up to £300 cashback on top of our underlying rate of 4.3% AER (variable).”