As you probably already know, the vast majority of the currency circulating in the world doesn’t physically exist: it’s just digital. Unless, of course, you invest it in a physical asset… such as gold, which is what Tally does for you.
It’s an innovative way of thinking about banking, while also building on a concept that’s as old as the world – that money should somehow be tied to its physical value. It’s still pretty early days, but we’ve taken a look at whether it could be a good idea for your finances.
At its core, Tally is a digital bank account that works thanks to an app and its card, just like your favourite challenger bank (Monzo? Starling? Revolut?).
However, the moment you transfer your pounds to your Tally account, you’re actually purchasing the equivalent amount in gold. This gold actually exists and is kept in a secured vault in Switzerland (yeah, for real).
This means that the value of your money will fluctuate according to the price of gold and not to the value of the pound.
Tally operates using the Tally currency, where 1 Tally = 1 milligram of gold. This is how it works:
The gold you purchase is pure, insured and sourced from “LBMA-accredited commodity brokers”, which in practice means that the gold meets the ethical and purity standards set by the London Bullion Market Association, a global authority for precious metals.
Also, keep in mind that getting Tally practically means that you’re investing your money in gold, which is a commodity. This is riskier, and more complicated, than getting a traditional bank account.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Tally charges a one-off ‘account activation fee’ when you open an account. It also charges an account management or ‘keeping’ fee.
When funds are transferred into your account, your pounds are converted to tally at the global gold wholesale price less a flat exchange fee.
Spending on your card and withdrawing cash from an ATM (both in the UK and abroad) is free. ATM withdrawals are limited to a certain amount each day, with a maximum number of withdrawals.
Tally isn’t a bank, and as it doesn’t deal with fiat currencies, it’s not FSCS protected. It is licensed by the Financial Conduct Authority to trade in electronic money.
Moreover, Tally says the gold you come to own is 100% insured, and if anything were to happen to the company that runs TallyMoney, your gold will be promptly sold and the sale proceeds, less a 1% fee to cover legal costs, will be transferred back into you linked account.
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Why on earth should you bother to get Tally? Will it make your money work harder? The answer is somewhat complicated.
The idea behind Tally is that fiat currencies are volatile, whereas gold, being a physical asset, is less likely to lose its value. While this is true to a degree, it is also true that gold prices (just like those of any other physical commodity, say, oil) go up and down all the time according to market trends. When you use Tally, you’re investing in gold, and investing always comes with the potential for earnings but also the risk of losses.
You need to be very aware of this, because the fact that your money is accessible all the time thanks to the card, can make it look like this is a regular bank account – it’s not. Any profit you make from selling the gold in your account will be subject to Capital Gains Tax in the UK.
By keeping your money in pounds, on one hand, you have the same problem: if the pound goes down, your money will be worth less from a global point of view. However, if you live in the UK, you’re usually less likely to notice this impact if you don’t travel or make many international purchases, because the economy of the whole country will readjust accordingly (usually, imported goods will become more expensive but exports will thrive). It’s still less than ideal, but it’s not as bad for you personally. If you hold your money in Tally and the price of gold goes down instead, you will bear the brunt of it.
Conversely, if the price of gold goes up, your money will be worth more than that of your fellow UK citizens. So, you’re taking a bet. In the long run, the price of gold has been going up, but it doesn’t mean you can’t lose money, especially in the short term – as you know, “past performance is no guarantee of future results”.
Finally, Tally is an innovative way of investing in gold, but certainly not the only one. You can learn more about it and compare options in our dedicated guide.
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