Introducing: 1 Year Fixed-Rate Savings Accounts

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We’re rolling out a new savings account! This week, we’re launching our new fixed-rate savings product, available only in the Tally app.

And of course, it’s a market-leading offering for savers.

The account gives a return of 2% on 12-month fixed-term deposits between £1,000 and £20,000.

This account is an exciting opportunity to introduce all the benefits of Tally to new customers with a guaranteed fixed-rate return on their savings.

We’re releasing a limited number of fixed-rate savings accounts every month, so we’re opening up a first-come, first-served waitlist that you’ll be able to join in-app via the ‘Safes’ tab.

As a member of Tally community you can get yourself, or your friends and family, on the waitlist early; please send us a message at support@tallymoney.com.

Find more info here: Tally | The UK’s best fixed-rate savings account

Tim

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It’s good to see the new fixed rate savings has made it’s way to the app. 2% is a lot better than the average bank interest of 0.01% (200 times higher or 19900% increase) but I don’t see many small savers locking up their savings for 12 months to secure this when the whole point of Tally, and from what I remember, their marketing of Tally as a hedge against inflation, which is probably running at a real rate of between 10% - 15% at the moment, 2% doesn’t even keep up with it.

Surely if the marketing of Tally has worked, people will be more aware of inflation destroying their savings and this savings account goes against their own marketing.

I can see high net worth individuals parking funds here just as a diversification strategy, but how many high net worth individuals are using tally with £20,000 being a small part of their account balance to move to this savings? Or are Tally actively targeting high net worth potential users somewhere?

It may be another string to the bow but I feel the time, effort and resources would have been far better used to make this a usable app for those already using it, to encourage more use and word of mouth, and to fix the bugs which are now several years old. If fact, I don’t even see them as bugs anymore, just parts of the app that don’t need to be there as they serve no purpose.

It’s a step in the right direction, but it seems to be a step too far missing several steps on the way.

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There needs to be more on the ‘get 99% of your money back if the company fails’ clarity too

From the This is Money article from July of this year, some of the highest voted comments were the ones which said they wouldn’t touch it because it was not covered be FSCS

All IMO

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Part of the general sentiment still stands that people are moaning at the fact that it is not FSCS protected.

Whats the best way to get around this Team Tally?

Ralph put out an article addressing this in 2019; extract below

We’re often asked what would happen if Tally ran into trouble as a business and went into administration. Even with segregated client money or assets such as gold that are “ring-fenced”, the winding down and returning of money to clients can be a very lengthy process. This can also be a very costly process that administrators will need to be paid for.

We wanted to set up a process and system that would mean our customers receive their money without delay and not have to wait for administrators to work out who is owed what. A kind of a “living will”.

The security trustee arrangement does exactly this. The following process would be triggered in the event of Tally Ltd going into administration:

1. All the physical gold that is owned by Tally customers and represented in their Tally accounts would immediately be under the control of the Security Trustee, Woodside Corporate Services Ltd.

2. The Trustee would, whilst maintaining strict confidentiality of the information, take delivery of individual client details, their Tally holdings and their default bank account.

3. The Security Trustee would cause all the Tally gold to be sold at the prevailing market price.

4. 99% of each individual customer’s funds would be returned to their default non-Tally bank account.

The cost of the security trustee structure and process to ensure the efficient administration and allocation of 99% of all customer funds to the relevant customer’s default non-Tally banking account is 1% of the funds being returned. We think this is a fair a reasonable price for the certainty it gives to Tally customers.

You could compare this to the Financial services compensation scheme (FSCS) that will compensate you the full amount in your bank account, but this is only up to £85,000 per person per bank account and the length of time to receive any money to be paid under the scheme may be a considerably long period. So whilst Tally is not covered by the FSCS, we are also not limited to the £85,000 cap the scheme provides.

Thing is, only Tally will know how many customers have over £85k stored within Tally, if the figure is low or zero, would it not be worth going through the process of getting FSCS protection? It seems to be a strong barrier of entry for quite a few people. Don’t take my word for it, just look at the comments from the This is Money article in July last year and you can see the upvoted comments re the ‘staying away because of no FSCS protection’ sentiment.

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Hi @JonnyE, @Chipchop,

The new fixed-rate product is market leading for savers right now, and also introduces customers to the benefits of Tally’s non-fiat banking system; to gain access to the fixed-rate safe, you must first sign up as a standard Tally customer.

The product will gain national coverage for Tally, and test the appetite of traditional bank customers for greater returns and better protections when it comes to their money - which, of course, we are especially well placed to provide.

On the FSCS queries, we’re using these questions as an opportunity to highlight the fundamental benefits of using Tally; the asset that underpins their money (i.e. physical gold) is securely stored and insured in a Brink’s vault in Switzerland, held on their behalf under a custodial arrangement with the added protection of a security trust structure.

This is a useful intro into explaining that the FSCS protects customers from the loss of GBP, so simply isn’t applicable, and is ultimately irrelevant, for Tally customers - who are saving in a better form of money; 100% physical gold which they own and is never loaned, leveraged or invested; in stark contrast to traditional GBP savings.

Hope that helps.

Tim

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Ok many thanks Tim,

Well it’s not me that you need to convince - the proof will be in the pudding to see if customers will sign up based on your USP’s

I for one hope they do but we will have to wait and see

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