Savings will continue to be eroded by rising inflation as today the Bank of England confirmed that the CPI rose from 2.1 to 2.5%. That’s higher than the Bank of England’s 2% target and many have warned that it could rise even more in the coming months.
âRight now, rising inflation is thought to be a temporary incident caused by a variety of factors.
âOne being the high price of oil, which has caused the prices of items such as gasoline to rise. âIn addition, as Freedom Day approaches, the hospitality industry has seen an increase in demand due to the easing of restrictions on coronaviruses.
âBritish individuals collectively sit on Â£ 1.7 trillion, most of which is in low interest accounts and not keeping pace with inflation. Those with excess liquidity may want to consider investing in assets that have historically offered protection against inflation. Commodities are an option, as are real estate investment trusts which can increase rental charges based on inflation.
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In addition to the inflation figures and the interest rate decision, the Bank of England detailed that its quantitative easing totaled Â£ 895 billion.
This, according to many, further deteriorates the purchasing power of the pound sterling and limits the extent of savings.
In light of these realities, UK savers and consumers may seek alternative savings products that do not rely on the relative weakness of fiat currencies.
Today, a new savings service has been launched with this in mind as Tally, a ârevolutionary banking platformâ, has become the first company in the world to issue customer accounts with individual IBANs (International Bank Account Number) using non-fiat money.
Tally argued that because it is not backed by any government-issued currency, like the British pound, it has been hailed as a “much safer” form of banking.
Cameron Parry, co-founder and CEO of Tally, commented on the need for this type of product in light of the economic instability.
Mr. Parry said, âTally offers an account that protects the value of a customer’s money by holding it securely outside the traditional banking system. This protects clients’ savings not only against the devaluing effect of inflation, but also protects their money against the consequences of an ever-expanding national debt.
âPeople should be able to rely on the money in their bank account to hold its value over time and stay in their control. This is fundamental for individual financial well-being and promotes savings and productivity in society.
âTo do this, we needed to create an independent, asset-based, full reserve banking system that works in a way that complements the system we have all been stuck with for 50 years.
âTally is at the forefront of the evolution of money accessible through bank accounts, with money designed by savers for savers. It is a robust and reliable global currency with no hidden fees, and easy to understand how money retains its value.
It should be noted that Tally “as with any currency” fluctuates from day to day, but since gold “historically contains its purchasing power”, so does Tally. Over the past two decades, the value of gold has risen more than 600 percent when measured in pounds, while the pound, calculated by Tally, has devalued 87 percent since January 2000.
Tally accounts themselves are issued through a regulated electronic money institution and the allocated physical gold used by Tally is ethically sourced LBMA approved physical gold stored in an accredited secure vault. at Brinks in Switzerland, and is 100 percent insured.
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