This gold-backed savings account earns 2%!
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the Bank of England base rate is currently 0.1%, which has had a crippling effect on the nation’s savings accounts. With UK interest rates at historic lows, savings account holders are understandably worried about the value of their savings.
However, a new high interest savings account has just hit the market! banking challenger Score launched the UK’s first gold-backed savings account which promises some of the best interest rates on the market. Here’s everything you need to know about this one-of-a-kind account.
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What is Tally?
Tally has launched a gold-backed savings account that offers industry-leading returns and better protection for UK savers. The new competitive savings account offers a fixed rate return of 2% over one year which is the highest offered by any savings provider.
Tally accepts deposits up to £20,000. The company operates in a reserve banking environment, which means that funds will never be lent, operated or invested. Most competing savings providers leverage loans by using customer savings to make a profit. Therefore, 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, the value of which generally increases in line with inflation. Funds in a Tally savings account represent the 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 to savers while introducing them to a better monetary system.”
The developers of Tally achieved this by offering a savings account that moves away from fiat currency. Instead, when you deposit money into your Tally savings account, you receive physical ownership of the gold. Each Tally unit represents one milligram of physical gold.
The account has a fixed interest rate of 2% and savers can deposit anything up to £20,000.
Do I need to open a Tally account?
The Tally account offers high interest rates and more security for account holders.
Cameron Parry, explains: “The current banking system undermines any advantage to savings, while our new account offers security and transparency to savers while introducing them to a better monetary system.”
Compared to market competitors, Tally offers the highest interest rates and best 1 year returns on deposits up to a value of £20,000. However, those looking to make larger deposits may need to research an alternative savings option.
Tally’s maximum deposit is only £20,000 while competitor Zopa offers a maximum deposit of £250,000. On top of that, 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 against inflation. Gold is a commodity whose value tends to increase with inflation. Therefore, saving with a gold-backed savings account could prevent your savings from losing value over time.
How do I open a Tally gold-backed savings account?
To open a Tally savings account, you must be a Tally member. You can join easily by completing the onboarding process and paying a one-time membership fee of £20. Each year, account holders must also pay an account maintenance fee of 1%.
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 £1000. You can transfer funds from your Tally savings account to your checking account at any time.