The first-of-its-kind savings account offers a GBP market-leading one-year 2% fixed-rate return.
A new savings product, offering better returns and better protection for savers, is today launched by bank challenger Tally.
No UK bank or savings provider offers a superior one-year fixed rate. Savers can deposit anywhere from £1,000 to £20,000 once their account is open.
The new account launches at a time when interest on savings is at a historic low and people are feeling financially squeezed by rising living costs.
The account also operates in a full reserve banking environment, meaning customer funds are never loaned, leveraged or invested. All competitor accounts leverage customer savings to make money for the bank, which means customer savings are at risk if loans are defaulted on.
Cameron Parry, CEO and Founder of Tally, says: “Our new one-year 2% fixed-rate savings account offers unrivalled returns, beating any other one-year fixed-term deposit currently on the market.
“Saving with traditional banks works to the detriment of the customer, who receives a minuscule amount of interest compared to the profit the bank makes from leveraging the customer's savings. Customers who also bear all the risk (often unbeknownst to them) if the bank's loans are defaulted on."
“With inflation badly outstripping the low rates being offered by high-street banks, people are desperately searching for solutions that offer value, security and an alternative to this fiat (government-issued) money trap.
“This product, and the Tally banking system in general, has been designed to give savers a fighting chance against rapidly rising inflation and financial volatility. And unlike traditional banks, our customer deposits are not leant out, leveraged up or invested, which makes saving with us more secure.
“The incumbent banking system undermines any benefit to saving whereas our new account provides security and transparency for savers whilst also introducing them to a better monetary system."
HOW THE NEW SAVINGS ACCOUNT WORKS
The new savings product is available through the Tally App to Tally customers only. Non-customers will need to download the Tally app and complete the onboarding process to open an everyday account. Once they pay their one-off Tally joining fee (£20), they can apply for a fixed-rate savings account when the waitlist opens. Customers can fix anywhere from £1,000 to £20,000 and positions are allocated on a first-come-first-served basis.
Cameron Parry added: “The Government is constantly talking about levelling up, but when it comes to savers, the incumbent banking system is designed to protect and benefit the bank, not the customer. People need an alternative, which is why we built Tally.
“Saving money that holds its value over time, and keeps the customer’s asset secure at all times, is fundamental to an individual’s financial wellbeing. Our market-leading one-year fixed-rate product makes fixed-rate savings more rewarding and also introduces customers to the benefits of Tally’s non-fiat banking system. We are introducing this product to test the appetite of bank customers for greater returns and better protections when it comes to their money.”