A new savings product is today launched by bank challenger Tally.
The first-of-its-kind savings account offers a one-year 2% fixed-rate return. 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.
Cameron Parry, CEO and Founder of Tally, said: “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.”