Saving strategies: how often should you save?

When it comes to saving, it’s important to plan how often you want to deposit money into your savings account.

There are typically three ways to do this; regular deposits, one-off deposits, or a combination of the two.

And when it comes to tally (physical gold), which has proven to increase in value over the long term, but fluctuates in comparison to £GBP, how do you know when to deposit?

Regular Deposits

Regular deposits are a saving strategy whereby an individual consistently saves smaller amounts of tally (physical gold) on a set schedule (for example, saving £100 of tally every month, instead of £1,200 at once).

What are the benefits of Regular Deposits?

Regular deposits can be an effective way to save by making a regular payment from a bank account into a Tally account and is as easy as setting up a standing order.

Some benefits of regular deposits include:

• Savers don’t have to remember to transfer money into their savings account each month
• The saver’s tally balance (read: physical gold ownership) will increase every month
• Savers can feel secure in knowing they’re contributing towards their financial goals every month in a currency that protects the long term value of their savings

Additionally, regular deposits can be a helpful method to aim to reduce the impact of fluctuations in the £GBP value of tally.

• Given that gold price fluctuates in comparison to £GBP, periodic scheduled deposits enables savers to buy gold at different prices over time. This can help average out any fluctuations (increases or decreases) in the price of gold.
• Having a regular deposit plan removes much of the detailed work of attempting to time the market, when some savers or investors try to buy tally at a low price.

One-off Deposits

One-off or lump sum deposits are a common way to save in tally. Whether you’re using existing savings, have sold a property, received an inheritance or simply wish to allocate different amounts of a regular salary to save in tally, you can make one-off deposits into tally in seconds via bank transfer.

What are the benefits of One-off Deposits?

Many people choose to save in one-off deposits due to convenience, personal analysis or to get their savings out of fiat currency and into tally immediately. Some of the benefits of one-off deposits include:

• Savers can feel secure in the knowledge that their savings are immediately held in physical gold, that is never lent, leveraged or invested.
• Moving savings into tally sooner removes the amount of time fiat currency savings are devalued over time via inflation, compared to regular deposits.
• Should the price of tally only increase after your purchase, the average price of your tally purchase will be lower than saving in regular deposits. The opposite also applies; if the price of tally only decreases after a one-off deposit, the average price of your tally purchase would be more expensive than regular deposits.
• Tally is not capped by the FSCS £85k limit, so it’s a great place to put larger amounts of savings or a windfall to ensure that the full balance is protected by our custodial arrangement and security trust structure.

Additionally, one-off deposits can be used by savers who want flexibility over when they purchase tally.

• The price of tally (physical gold) is set by global markets on the principles of supply and demand. Many expert and retail investors, and savers, believe they can identify when that price is lower than it will be in the future, and choose to make one-off purchases on those occasions.

Which saving strategy should you choose?

To know which saving strategy is right for you, it’s important to consider your unique saving circumstances.

Regular deposits are simple to set up, help savers save reliably on a set schedule and let savers buy gold at different prices on set dates, which can help average out tally (physical gold) price fluctuations. Savers can set up standing orders to make regular payments from any bank account into their Tally account.

One-off deposits enable savers to own any amount of tally (physical gold) instantly and give savers flexibility should they wish to time their tally purchase. Savers can make one-off deposits into tally in seconds via bank transfer.

Download the Tally app and start saving today!

Important information: The content is for informational purposes only, you should not construe any such information or other material as financial or other advice.