Of course, many of us on here have had this account for many years, a lot of us didn’t pay a fee to open it and we have seen gold increase over 80% since then. You are one of the lucky ones who opened their account and were able to deposit around £20,000.00 and have seen around 40% increase. But, just because you are in that position doesn’t mean everyone is.
Based on the main promotion of tally that I’ve seen, it appears their target demographic is a user of facebook, Instagram and tiktok.
Tally have already onboarded the low hanging fruit, us shareholders and all the friends and family we have onboarded for them. They are now faced with trying to onboard fresh customers, the majority of which have very little knowledge of finance and economics, even less knowledge of gold and its relationship with money and currency. Most people have zero knowledge of how banks work, and worse still, most of this demographic have very little appetite to learn about it because they don’t have any disposable income in the first place.
(A few lines from Money.co.uk)
UK savings account statistics revealed that the mean average amount of savings in a UK savings account is £17,365. However, as always, average figures hide the gap between the ‘haves’ and the ‘have-nots’.
One in seven (13%) people in the UK revealed they have nothing in their savings, whereas a third (33%) of UK savers said they would struggle to cover a month’s worth of living expenses if they lost their primary source of income.
According to savings stats from the FCA, up to a third (34%) of UK adults had either no savings, or less than £1,000 in a savings account. This equates to around 22.8 million people with very little or no money to fall back on. This figure was skewed towards the younger population, with under half (47%) of 18-24 year-olds having less than £1,000 in their savings account.
The fee to open an account is now a bigger barrier to entry than it was before, and it’s not like they have onboarded millions of people in the last 5 or 6 years with zero fee or £19.
It isn’t nit picking, it’s common sense from a business point of view, the idea is to get people opening an account, depositing a few quid and hopefully they’ll see it grow, then they’ll be more inclined to drip feed into the account for many many years all while paying the fees to hold the gold and use the card, and telling their friends and family about it. Not scaring them off straight away with a £30 bill just to try it.
Telling people to “Go with the flow you won’t regret it” isn’t much help to the people most in need of an account like this, because paying £29 to open an account to buy gold at the most expensive it has been in history, when they are already struggling to pay their bills and debt cards, just isn’t going to cut it!
Just a quick addition, your comment of “the concept is great” I also disagree with, yes OWNING GOLD IS GREAT, but I’ve already made my view clear about how irresponsible and financially damaging this ‘concept’ could be in its current form. The gold price is high, so when it starts to fluctuate up and down more and customers make deposits, withdrawals, card payments etc, they only need to do a few of each and they’ll have no idea if they are up or down financially, they could easily be spending and loosing without knowing it.
