This gold-backed savings account pays 2%!

Tally has launched a brand new gold-backed savings account that offers 2% returns. Here’s everything you need to know about this new way to save!

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Young woman smiling putting a coin inside piggy bank as savings for investment

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

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.

[top_pitch]

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.

middle_pitch]

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.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »