Tally Money

“Tally Money” a fintech organisation worth watching for in 2020, they aim to offer a complete banking service but your money is linked to the gold value:

Some quotes from their forum:

“We want to reach a mass consumer market and therefore we see our competitors as the challenger banks such as Monzo, Revolut and Starling.
Our customers receive their own individual banking account (not pooled accounts with top up prepaid cards) which will shortly be connected to UK faster payments that will then mean customers can set up direct debits and use Tally as primary bank account.”

The selling point for many is your money is linked to the gold value and is not impacted on the UK pound devaluing over time. Even with a high-interest saving account offering 1.5% is wiped away when you consider inflation is at 2.5%.

Remember when Glint tried this.

:skull_and_crossbones:

1 Like

Just to point out every one who had money in Glint got their money back.

At the time I did ask Tally what processes was in place in the case of Administration, their response:

“Tally Ltd and its operating subsidiaries have entered into a security trust deed with an independent third-party security trustee. In the unlikely event anything happens to Tally Ltd or the relevant operating subsidiary, your Tally gold will be converted into fiat (government-issued) currency and 99% of the amount will be deposited into your default non-Tally bank account. The other 1% is allocated to the total cost of this protection and process and the efficient return of 99% of your funds. Your default non-Tally banking account is the first account you used to make a deposit into Tally - this must be an account in your name.”

And should the gold price drop or stagnate?

3 Likes

For long investment of 20 years vs pound:

Vs shares:

Now do it with reinvested dividends.

Hint the gold and silver ones are surprisingly gold and silver.

1 Like

so if you buy this “tally money” for x at a certain time and the price of gold drops and you want to spend your “tally money” , you lose “value” of the money you have put in to the “tally” account, unless you are prepared to wait to purchase the thing you want to use your card for until the price of gold raises above the value that you bought it for in the first place ?

" a primary bank account " a daily available balance which depends on the gold price ?? :man_shrugging:

1 Like

This appears to be the same Tally we saw back in 2018. I’m not sure what makes them now a fintech for 2020? If anything they will become even more obscure imo.

Interesting idea, but yeah gold is essentially dead money. You get exposure to price change, which is reasonably volitile, but it doesn’t generate any interest or dividends. This is why people use it as a reserve currency when normal investments get choppy. So its arguably too volitile for short term savings, but doesn’t generate enough of a return over the long term.

Im also interested to understand the underlying cost of the account here. If they are buying and selling gold here, what’s the ultimate cost passed on to the consumer? Where is this company passing on those costs?

1 Like

I’m not much of an investor so forgive my ignorance here but, if this was to be successful, wouldn’t that change the price? If Tally manages to get X million customers, what impact does that have on the price of gold?

And if that impact is to drop the price, and it’s the sole ‘thing’ that Tally is built upon, wouldn’t that be a bit of a problem?

Something something eggs in one basket something?

I would have thought an increase, in millions, of people “buying” gold would raise the price since the demand was going up.

1 Like

Tally, or rather Lionsgold, own parts of a few mine dotted around in high cost areas, this is literally a way of flogging that gold.

1 Like

Ahhh I see. Thanks @anon99402360 and @swok1080 - makes sense but still makes me wary/wonder.

Monthly charge.

Instead of multiple fees and hidden mark-ups, we have a single, transparent charge of 0.1% of your monthly holding. This is calculated daily and charged monthly. Any holding above 500,000 Tally is charged at 0.05%.

How on earth will direct debits work? Presumably you’d have to keep quite a reserve in the account to cover price drops just before your DD is due to go out.

The fundamental flaw is linking a “current” account to a backstop investment. There’s just no way to square that circle.

3 Likes

So 0.1% per month, assuming you plopped £100 worth in, and it remained at £100 all year would mean you have £98.91 by the end of the year left, so that’s an annual fee of 1.2%(ish), I tried to do an APR but failed in my maths.

When you consider a management fee in the Invesco Physical Gold ETC is about 0.24% per annum, this is quit an expensive way to buy gold.

Not entirely sure what solution this product is trying to solve.

2 Likes

Tin foil hat peoples problems

3 Likes

I’ve got that at £98.81 based on a rough 10p * 12 mths (£1.20) and taking off a penny to account for the reducing very slightly less than 10p each month.

But yeah I agree it doesn’t seem to be that great. :neutral_face:

Say you had £5k avg balance in it, thats a sixty quid (£59.67) over a year.

So let’s say gold has gone up 18.25 % over last year.

So £5,912.5 - £60 = £5,852.50

If you had instead stuck said £5000 into SPGP ETF (Gold Industry) it would have generated about £1,800 profit over last year.

£5,000*1.3583 = £6,791.50


Theres no guarantee that the price of gold will do the same this year.

So whilst investing is fine as its a long game I wouldn’t want to live my life knowing that tomorrow my day-to-day £5k account balance is only worth £4,500 from a dip you generally need it to reliable, mixing balance and investments doesn’t sit well with me.

1 Like

There must be a tiny fraction of people who have so much money that gold is useful for actually paying other people, but even then you’d probably want the physical gold if a war started and or the whole financial system collapsed…

Still doesn’t make any sense!

1 Like

I managed a much simpler way to achieve this, and to date, it has actually made money.
Approximately 20 years ago, I took an interest in the gold market, and decided I would have a dabble.
I started with a relatively small amount (approx £1000) and decided that with that money I would buy and sell second hand gold.
I have bought scrap, second hand jewellery and a bit of bullion.
Keeping an eye on the prices, I sell small quantities when the price is high, and re-invest the money when the price drops again, with the cash sitting in a savings account until used thereby earning a bit of interest.
All of the transactions are through the likes of ebay, bullion dealers, etc and any costs come out of whatever money I make.
OK, this is only done as a hobby, and I would imagine there have been better investments out there over the same period of time ,but to date my “playing” at being a gold dealer has turned my initial £1000 investment into a nice little nest egg.

1 Like