The Bank of England base rate is currently 0.1%, which has had a crippling effect on the nation’s savings accounts. With interest rates in the UK at an all-time low, savings account holders are understandably worried about the value of their savings.
However, a new high-interest savings account has just hit the market! Bank challenger Tally has launched the UK’s first gold-backed savings account that promises market-leading interest rates. Here’s everything you need to know about this first-of-its-kind account.
What is Tally?
Tally has launched a gold-backed savings account that offers market-leading returns and better protection for UK savers. The new competitive savings account offers a one-year 2% fixed-rate return that is the highest offered by any savings provider.
Tally is accepting deposits of up to £20,000. The company operates in a reserve banking environment, which means that the funds will never be loaned, leveraged or invested. Most competitor savings providers leverage loans using customers’ savings to make a profit. As a result, depositing into one of these accounts could put your funds at risk.
Tally is a gold-backed savings account. This means that the funds are anchored in gold, which typically increases in value alongside inflation. The funds in a Tally savings account represent physical ownership of gold. Therefore, the account value is not affected by inflation.
How does the new savings account work?
According to CEO Cameron Parry, Tally accounts “provide security and transparency for savers whilst also introducing them to a better monetary system”.
The developers of Tally have achieved this by offering a savings account that strays away from fiat currency. Instead, when you deposit money into your Tally savings account, you receive physical ownership of gold. Each unit of Tally represents one milligram of physical gold.
The account has a fixed interest rate of 2% and savers are able to deposit anything up to £20,000.
Should I open a Tally account?
The Tally account offers high interest rates and more security for account holders.
Cameron Parry, explains: “The incumbent banking system undermines any benefit to saving, whereas our new account provides security and transparency for savers whilst also introducing them to a better monetary system.”
Compared to market competitors, Tally offers the highest interest rates and the best 1-year returns on deposits up to the value of £20,000. However, those looking to make larger deposits may need to seek an alternative savings option.
Tally’s maximum deposit is just £20,000 whereas competitor Zopa offers a £250,000 maximum deposit. As well as this, Tally’s minimum deposit is £1,000. This means that savers with low funds may not be able to open an account.
However, opening a Tally account could be a great way to protect your savings from inflation. Gold is a commodity that tends to increase in value alongside inflation. Therefore, saving with a gold-backed savings account could prevent your savings from losing their value over time.
How do you open a Tally gold-backed savings account?
To open a Tally savings account, you must be a member of Tally. You can join easily by completing the onboarding process and paying a one-off joining fee of £20. Each year, account holders must also pay a 1% account-keeping fee.
Once you are a member, you can open a savings account through the Tally app. To do this, you will need a minimum deposit of £1,000. You can move the funds from your Tally savings account into your current account at any time.