- A market-leading product for deposits from Â£ 1,000 to Â£ 20,000
- Unlike traditional banks, customer savings are never loaned, mobilized or invested, meaning no bank loan risk for customers
- Because deposits are not used to create more money by taking out new loans, it is also the very first bank account that does not contribute to inflation.
A new savings product, offering better returns and better protection for savers, is today launched by the banking challenger Tally.
The one-of-a-kind savings account offers one GBP 2% fixed rate yield over one year, market leader. No bank or savings institution in the UK offers a fixed rate for more than one year. Savers can deposit from Â£ 1,000 to Â£ 20,000 once their account is opened.
The new account is being launched at a time when interest on savings is at an all-time low and people are feeling financially pressed by the rising cost of living.
The account also operates in a full reserve banking environment, which means client funds are never loaned, tapped, or invested. All competing accounts leverage customer savings to earn money for the bank, which means customer savings are at risk if loans default.
Leading UK One Year Fixed Rate Savings Accounts – Tally Outperforms The Market
|name||Rate||Maximum deposit||1 year return on Â£ 1,000||1 year return on Â£ 5,000||1 year return on Â£ 10,000||1 year return on Â£ 15,000||1 year return on Â£ 20,000|
|Pointing||2.00%||Â£ 20,000||Â£ 1,020
|Â£ 5,100||Â£ 10,200||Â£ 15,300||Â£ 20,400|
|Zopa||1.35%||Â£ 250,000||Â£ 1,013.50||Â£ 5,067.50||Â£ 10,135||Â£ 15,202.50||Â£ 20,270|
|Investec||1.33%||Â£ 250,000||Â£ 1,013.30||Â£ 5,066.50||Â£ 10,133||Â£ 15,199.50||Â£ 20,266|
|Grape*||1.27%||Â£ 85,000||Â£ 1,012.70||Â£ 5,063.50||Â£ 10,127||Â£ 15,190.50||Â£ 20,254|
|Bank Al Rayan **||1.25%||Â£ 1 million||N / A||Â£ 5,062.50||Â£ 10,125||Â£ 15,187.50||Â£ 20,250|
|Monzo*||1.07%||Â£ 1 million||Â£ 1,010.70||Â£ 5,053.50||Â£ 10,107||Â£ 15,160.50||Â£ 20,214|
|Bank of atoms||1.00%||Â£ 100,000||Â£ 1,010||Â£ 5,050||Â£ 10,100||Â£ 15,150||Â£ 20,200|
(up to Â£ 250 per month)
|Â£ 1,010||N / A||N / A||N / A||N / A|
|Lloyds Bank***||0.75%||Â£ 3,000
(up to Â£ 250 per month)
|Â£ 1,007.50||N / A||N / A||N / A||N / A|
|Marcus by Goldman Sachs||0.50%||Â£ 250,000||Â£ 1,005||Â£ 5,025||Â£ 10,050||Â£ 15,075||Â£ 20,100|
Competitive product comparisons are correct as of November 16, 2021.
* Provided by the Chartered Savings Bank
** Minimum deposit of Â£ 5,000
*** Products offered by HSBC and Lloyds Bank only have a maximum deposit of Â£ 3,000, so no figures for balances above this amount
Cameron Parry, CEO and Founder of Tally, says: âOur new 2% fixed-rate one-year savings account offers unmatched returns, outperforming any other one-year term deposit currently on the market.
âSaving with traditional banks comes at the expense of the customer, who receives a tiny amount of interest compared to the profit the bank makes by exploiting the customer’s savings. Customers who also bear all the risks (often without their knowledge) in the event of default on the bank’s loans.
âWith inflation far exceeding the low rates offered by the big banks, people are desperately looking for solutions that offer value, security and an alternative to this fiat money trap (issued by the government).
âThis product, and the Tally banking system in general, was designed to give savers a chance to fight rapidly rising inflation and financial volatility. And unlike traditional banks, our clients’ deposits are not loaned, increased or invested, making saving with us more secure.
“The existing banking system undermines any savings advantage as our new account offers security and transparency to savers while helping them discover a better money system.”
HOW THE NEW SAVINGS ACCOUNT WORKS
The new savings product is available through the Tally app for Tally customers only. Non-customers will need to download the Tally app and complete the onboarding process to open a daily account. Once they have paid their one-time Tally membership fee (Â£ 20), they can apply for a fixed rate savings account when the waiting list opens. Customers can pay between Â£ 1,000 and Â£ 20,000 and positions are allocated on a first come, first served basis.
Cameron Parry added: âThe government is always talking about upgrading, but when it comes to savers, the existing banking system is designed to protect and benefit the bank, not the customer. People need an alternative, which is why we built Tally.
âSaving money that retains its value over time and protects customer assets at all times is fundamental to an individual’s financial well-being. Our industry-leading one-year fixed rate product makes fixed rate savings more rewarding and also introduces clients to the benefits of Tally’s non-fiat banking system. We are introducing this product to test the appetite of bank customers for better returns and better protections when it comes to their money.