Why don’t I earn interest on my Tally account?

Most people are familiar with paying interest on a loan and understand this is the cost of borrowing money. We do this every day with mortgages, credit cards and car loans. But not many people think about why your bank pays you interest on your savings. 

When you deposit money into your regular high street savings account, you are loaning the bank your money. You become an unsecured creditor of the bank, who then pays you a (small amount of) interest on your loan to them. The bank then goes on to loan your deposited funds out to other people, charging them significantly more interest than they are paying you. As you are now a creditor of the bank, your deposit is now at risk.

TallyMoney does not pay you any interest because when you transfer pounds in, your GBP is automatically used to immediately buy real physical gold sourced from London Bullion Market Association (LBMA)-accredited providers, securely vaulted in Switzerland on your behalf. Your gold is then denominated in milligrams called ‘tally’ in your TallyMoney Account, and you can use it as everyday money. Unlike a high street bank, you are not a creditor of TallyMoney, there is no loan so there is no interest paid. Whilst the value of gold (and therefore your tally) does fluctuate in the short term, gold has proven to increase in value over time, protecting the long-term value of your money.