Is Tembo FSCS protected? Where your money is actually held

Tembo is not a bank. Its cash savings are held as client money or on bare trust in pooled accounts in Tembo's name at partner banks (Aldermore, Bank of Scotland, Barclays, Lloyds, Qatar National Bank, Shawbrook and, for the fixed-rate Cash ISA, Investec), so the FSCS protects up to £120,000 per person at each bank's licence if one of those banks fails, shared with any money held there directly. Because the accounts are in Tembo's name, an FSCS payout can take up to three months, and the Stocks & Shares Lifetime ISA is a BlackRock fund covered only by the £85,000 investment scheme.

Tembo is an FCA-authorised investment firm that holds client money, not a bank: customers contract with Tembo Savings Limited (FCA firm reference 928010). Every statement below is taken from the source named beneath it, last checked 24 October 2026. It is information, not advice.

Who holds the money, product by product

Who Tembo is

Tembo, Tembo Savings, Tembo Lifetime ISA, Tembo Cash ISA, Tembo Cash ISA - Fixed Rate and Nude are trading names of Tembo Savings Limited (company 12008146, 18 Crucifix Lane, London SE1 3JW), authorised and regulated by the FCA with firm reference 928010 and registered as an account information services provider (913654).

Tembo's mortgage business is a separate FCA-regulated firm, Tembo Money Limited (firm reference 952652); savings are provided only by Tembo Savings Limited.

Tembo Savings Limited changed its name from Nude Finance Limited on 21 January 2025, and is a wholly owned subsidiary of Tembo Money Limited.

Tembo states: "Tembo isn't a bank but a UK savings provider, authorised and regulated by the Financial Conduct Authority (FCA). We hold your money in accounts with our partner banks, separate from Tembo's own money."

How each product is protected

Cash ISA, HomeSaver Cash ISA, Cash Lifetime ISA and uninvested Stocks & Shares Lifetime ISA cash are client money held under the FCA's client money rules in pooled accounts in Tembo's name at one or more banks; customers are beneficial owners but "will not have a claim for a specific sum in a specific account", and share proportionately in any uncorrected shortfall.

The HomeSaver account and the Cash ISA - Fixed Rate during its term are held on bare trust in Tembo's name at Lloyds Bank and Investec respectively. In each case the FSCS covers eligible deposits up to £120,000 per person per banking licence if the bank fails.

Stocks & Shares Lifetime ISA fund units are covered by the FSCS investment scheme up to £85,000 per person per firm if BlackRock or Tembo fails and money is lost as a result; the FSCS does not cover falls in the fund's value.

If Tembo or a partner bank fails

If Tembo fails, client money and trust money "do not belong to Tembo and so do not form part of our assets", so an insolvency practitioner would work out each customer's share and return it, transferring ISA money to another ISA provider where possible; the costs of identifying and returning the money "may be deducted from the pooled funds first, which means you may not receive the full amount."

If a partner bank fails, the FSCS cannot pay automatically because the money is in an account in Tembo's name alongside other customers' money; it needs Tembo's records first, and payment "can take up to three months" rather than the usual seven days.

Tembo may place client money in bank accounts with notice periods or fixed terms of up to 95 days; if Tembo or a bank fails, that money "cannot be withdrawn early", so its return "could be delayed by up to 95 days, and you could receive back less than the full amount held for you."

Does it share your FSCS limit?

Yes. Tembo states that the £120,000 limit "applies per person, per banking licence, not per account, and not per product": money Tembo places at a bank and money in an account held directly with that bank "are added together and share a single £120,000 limit".

Tembo's example: a Barclays current account takes up part of the £120,000 claim limit for Barclays. Tembo says it holds roughly 10% to 40% of savings with each bank and no more than 40% with any single bank, so a customer's money is usually spread across several licences.

Size

Tembo Savings Limited's assets under administration rose from £147 million to over £2 billion in the year to 30 November 2025, and its interest income rose from £5.2 million to £61.7 million. It made a loss of £4.4 million after tax (2024: £2.6 million) and had net assets of £1.8 million; its parent Tembo Money raised £15.7 million in December 2025 and gave a letter of support, and the auditor raised no material uncertainty over going concern.

Tembo's savings page describes its app as "trusted by 400,000+ savers"; no audited customer figure was found.

Regulatory record since 2020

No FCA fine, final notice or public enforcement action against Tembo Savings Limited (or its former name Nude Finance Limited) or Tembo Money Limited since 2020 was found in a search of fca.org.uk for the firms' names.

The fine print

Tembo keeps the interest the banks pay on client money: "The Account Bank may pay us interest on the Client Money balances we hold for your benefit. If they do, we will retain all of this interest." Tembo pays customers' interest separately.

The Tembo Cash ISA - Fixed Rate is "provided by Investec", and its FSCS cover of £120,000 is "across all of your eligible Investec accounts", including any held directly; withdrawing before the end of the 12-month term costs a 90-day interest penalty.

Tembo's bank list names "Barclays Bank plc" and "Lloyds Bank Plc" without firm reference numbers; it tells customers to use the FSCS protection checker because "two banks in the same group can hold separate licences and separate limits" while "several brands can sit under one banking licence".

Frequently asked questions

Is Tembo FSCS protected?

Tembo is not a bank. Its cash savings are held as client money or on bare trust in pooled accounts in Tembo's name at partner banks (Aldermore, Bank of Scotland, Barclays, Lloyds, Qatar National Bank, Shawbrook and, for the fixed-rate Cash ISA, Investec), so the FSCS protects up to £120,000 per person at each bank's licence if one of those banks fails, shared with any money held there directly. Because the accounts are in Tembo's name, an FSCS payout can take up to three months, and the Stocks & Shares Lifetime ISA is a BlackRock fund covered only by the £85,000 investment scheme.

Which bank holds my Tembo money?

Cash ISA - Easy Access and HomeSaver Cash ISA (pooled client money): Aldermore Bank plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash ISA - Easy Access and HomeSaver Cash ISA (pooled client money): Bank of Scotland plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash ISA - Easy Access and HomeSaver Cash ISA (pooled client money): Barclays Bank plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash ISA - Easy Access and HomeSaver Cash ISA (pooled client money): Lloyds Bank Plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash ISA - Easy Access and HomeSaver Cash ISA (pooled client money): Qatar National Bank (Q.P.S.C.) (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash ISA - Easy Access and HomeSaver Cash ISA (pooled client money): Shawbrook Bank Limited (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash Lifetime ISA (pooled client money): Aldermore Bank plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash Lifetime ISA (pooled client money): Bank of Scotland plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash Lifetime ISA (pooled client money): Barclays Bank plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash Lifetime ISA (pooled client money): Lloyds Bank Plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash Lifetime ISA (pooled client money): Qatar National Bank (Q.P.S.C.) (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Cash ISA - Fixed Rate (during the fixed term): Investec Bank plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Cash ISA - Fixed Rate (before the term starts and after maturity): Bank of Scotland plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). HomeSaver account: Lloyds Bank plc (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Regular Saver: Lloyds Bank plc (pooled trust account) (a deposit with that bank, FSCS-protected up to £120,000 per person at that bank's licence). Stocks & Shares Lifetime ISA (uninvested cash): Barclays Bank plc (client money the firm holds on trust at banks: FSCS deposit cover up to £120,000 per person per bank if a bank fails, and investment cover up to £85,000 for any shortfall if the firm fails). Stocks & Shares Lifetime ISA (invested): BlackRock MyMap 5 ESG Class D (Acc), BlackRock Fund Managers Limited (units in a fund, an investment rather than a deposit). Money in transit (direct debits and one-off payments, up to one business day): GoCardless client account (e-money safeguarded by the firm, not FSCS deposit protection).

What happens if Tembo goes bust?

If Tembo fails, client money and trust money "do not belong to Tembo and so do not form part of our assets", so an insolvency practitioner would work out each customer's share and return it, transferring ISA money to another ISA provider where possible; the costs of identifying and returning the money "may be deducted from the pooled funds first, which means you may not receive the full amount."

Does Tembo share the FSCS limit with my other savings?

Yes. Tembo states that the £120,000 limit "applies per person, per banking licence, not per account, and not per product": money Tembo places at a bank and money in an account held directly with that bank "are added together and share a single £120,000 limit".

More: other savings apps and platforms, how FSCS protection works and which banks share a banking licence.