The Bank of England’s base rate is currently 0.1%, which has had a crippling effect on the country’s savings accounts. With UK interest rates at historically low levels, savings account holders are rightly concerned 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 some of the best interest rates in the market. Here’s everything you need to know about this one-of-a-kind account.
What is the count?
Tally has launched a gold-backed savings account that offers some of the best returns on the market and better protection for UK savers. The new competitive savings account offers a 2% fixed rate return over one year, the highest offered by any savings provider.
Tally accepts deposits up to £ 20,000. The company operates in a reserve banking environment, which means funds will never be loaned, raised or invested. Most competing savings providers leverage loans by using customers’ savings for profit. Therefore, making a deposit 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 usually increases in line with inflation. The funds in a Tally savings account represent the physical ownership of gold. Therefore, the value of the account is not affected by inflation.
How does the new savings account work?
According to CEO Cameron Parry, Tally accounts “offer security and transparency to savers while helping them discover a better monetary system.”
The developers at Tally have achieved this by offering a savings account that moves away from fiat money. Instead, when you deposit money into your Tally savings account, you receive physical ownership of the gold. Each unit of Tally 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 have to open a Tally account?
The Tally account offers high interest rates and more security for the account holders.
Cameron Parry, explains: “The banking system in place undermines any savings advantage, while our new account offers security and transparency to savers while introducing them to a better money system.
Compared to market competitors, Tally offers the highest interest rates and best 1 year returns on deposits up to £ 20,000. However, those looking to make larger deposits may need to look for another 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 from inflation. Gold is a commodity whose value tends to increase along 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 are also required to 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.
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