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The account allows penalty-free withdrawals and has no cap on transfers from existing Cash ISA

A savings account promising one of the highest cash ISA rates on the market has arrived, and it comes with a catch that could work in buyers' favour.

The product is aimed squarely at savers building a deposit for their first property, those planning a move, and existing homeowners approaching the end of a fixed-rate deal.

Tembo has unveiled its HomeSaver® Cash ISA, delivering a headline rate of 5.5 per cent AER to customers who subsequently purchase, move home or remortgage through the company.

The 5.5 per cent return is split into two components. Savers receive a variable base rate of 2.8 per cent, paid into their account on a monthly basis.

On top of that, a fixed conditional bonus of 2.7 per cent accumulates over a twelve-month period.

To unlock it, the account holder must complete a mortgage through Tembo within three years of opening the ISA.

Once the bonus period ends and the mortgage condition is met, the additional interest is deposited directly into the customer's Cash ISA.

The base rate applies from day one, regardless of whether the saver ultimately proceeds with a mortgage.

Several features distinguish the account from rival offerings. There is no cap on transfers-in or existing balances, so savers who have built up Cash ISA pots over multiple tax years can apply the boosted rate to sums well beyond the current annual allowance.

Withdrawals can be made at any time without penalty, and Tembo's mortgage advice carries no fee.

On a balance of £30,000 held for a full year, the platform estimates customers would earn more than £250 in extra interest compared with the next best Cash ISA rate currently available.

Eligible deposits are covered by the Financial Services Compensation Scheme, protecting up to £120,000 per person, per authorised firm.

Richard Dana, founder and chief executive of Tembo, said: "Getting the best possible return on your savings can make a real difference when buying a new home.

"Our HomeSaver® Cash ISA is designed to make your money work harder, while also giving customers support when they're ready to make their plans a reality.

"Savers get a competitive tax-free return, complete flexibility over their money and access to Tembo's award-winning mortgage advice when they're ready to buy, move or remortgage."

To get started, customers can open an account and deposit up to their remaining annual ISA allowance or transfer existing Cash ISA balances from another provider.

Mr Dana's platform has positioned the product as a bridge between saving and homeownership, combining tax-free returns with access to its mortgage service at no additional cost.