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FSCS protection is going up, because the pound is going down

FSCS Protection Is Going Up, Because The Pound is Going Down

From 1 December 2025, the UK’s deposit guarantee scheme will raise its protection limit from £85,000 to £120,000 per person, across each UK-authorised bank, building society, or credit union. 

On first impressions, it might seem like the government is stepping up to protect the money in your bank. However, the reality is this increase is a reactive response to years of inflation and currency debasement that have systematically eroded the value of the pound sterling.

Why the Increase is Happening

One of the primary reasons regulators are increasing the deposit protection limit is quite simply because inflation has diminished the pound’s purchasing power. 

The last time the deposit protection limit was updated was in 2017 at £85,000. Sadly, £85,000 today buys far less than it did eight years ago. Raising the deposit protection limit is a reactionary measure to limit the damage done by years of reckless spending.

Another reason is to try and keep the public trusting the financial system. According to Sam Woods, Deputy Governor for Prudential Regulation at the Bank of England: “This change will help maintain the public’s confidence in the safety of their money … Public confidence supports the strength of our financial system.”. 

When you put two and two together, it becomes clear that the reason regulators have hiked the cap is because inflation has eroded the purchasing power of the pound so much that the public have lost confidence in the financial system.

If the Cap Had Kept Pace with Gold, What Would It Be?

While the FSCS deposit protection limit has been raised to £120,000, it’s worth asking how much that limit would need to be if it simply reflected the growth of gold. Let’s look at the data:

  • The gold price in GBP has surged in recent years. For example, in the last 3 years alone, the price of gold increased by around 108%. 
  • If we apply a similar uplift to the £85,000 base from 2017, the deposit protection limit would be around £175,000
  • This means the £120,000 limit actually falls well short of protecting savings in terms of real-value equivalence with gold. 
  • In other words: you’re “safer” in nominal terms, but not in real terms.

Where Does the Money Come From If Banks Fail?

Here’s the uncomfortable truth: if a large bank (or banks) goes under and the FSCS needs to pay out significant sums, that money doesn’t magically exist in a vault somewhere. Here’s what happens:

  • The FSCS is funded by a levy on the financial services industry, but in a systemic event, the costs would be much larger than any one year’s levy. 
  • The government would need to print new money to cover liabilities.
  • When new money is printed, the pound’s value weakens further
  • So if banks were to go under, the compensation you would get would be significantly devalued by the time you get it. 

Why TallyMoney Offers Better Protection

With TallyMoney, you’re not tied to a system of inflation and currency debasement. Gold can’t be created out of thin air, and with TallyMoney, you own real, LBMA-accredited gold, fully insured and 100% yours. 

If your bank goes under, the compensation you receive is capped and debased. In the unlikely event that TallyMoney ever ceased trading, you would receive all of the proceeds of your gold minus a 1% administration fee – a significantly better outcome.

TallyMoney isn’t just an alternative to the banking system, it’s a fundamentally different way to protect and use your savings.

Real Protection Starts with Real Value

If you’ve worked hard to save and want more than a promise, it’s worth asking: are you safeguarding the value of your savings or simply the number in the account?

With TallyMoney, you hold gold, not just protection. It’s real value that can’t be eroded by inflation.

Open your TallyMoney account now and give your savings the asset-based protection they deserve. 

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Real World Examples

  1. Fancy a coffee? Use your TallyMoney Mastercard. Boom – paid. (Yes, you’re buying a flat white with gold. How amazing is that?)

  2. Need cash? Use any Mastercard ATM worldwide or spend across the globe. ZERO fees from us, ZERO markup. (When you spend or withdraw, your gold converts instantly at the global spot price. No catches, no hidden charges – just straight-up Mastercard exchange rates. Because your money shouldn’t cost you… more money.)

  3. Want some money back in your bank? Just tap ‘transfer’ in the app. (Though after a while, you might wonder why you’d want to…)

    Zero faff. Zero waiting. Zero fees when you spend tally.

Meet Cameron Parry

Meet the guy who wouldn’t accept being trapped in a ‘heads they win, tales we lose’ government-run monetary system that protects and benefits the financial institutions, to the detriment of the public. Where people’s deposits are constantly at risk, and losing value through inflation caused by central bankers and politicians.

If necessity is the mother of invention, then frustration may be the roommate’s cousin of motivation. In any case, he decided to stop getting mad and start a new monetary system with sound money. Where deposits serve the depositor, where savings build wealth for savers, and transactions are made in a familiar way. And he called it TallyMoney.

TallyMoney: Gold upgraded

With TallyMoney:

  • Your pounds instantly become physical gold (1 tally = 1mg of real gold)
    Stored in Swiss vaults (not under your bed)
  • Fully insured and allocated (actually yours, not a paper promise)
  • Spend it anywhere with your TallyMoney debit Mastercard
  • Transfer back to pounds instantly if needed (but why would you?)

We’re not anti-bank because it’s trendy. We’re anti-bank because the current system is rigged against you. Every day you leave money in a “savings” account, you’re funding their profits while your wealth evaporates.

Enter gold: the original currency

Why gold? It’s value is universally acknowledged.

  • It’s not controlled by any single government
  • It can’t be printed or manufactured
  • It’s actually scarce 
  • It requires effort to extract it 
  • It doesn’t rust, decay, or disappear
  • It has remarkable properties

So while the pound’s lost 50% of its value since 2004, gold’s grown by 146% in the last decade alone. While your bank savings got mugged by inflation, gold owners were laughing all the way to… well, not the bank.

But here’s the rub: Traditional gold ownership is a right pain. Buy physical bars? Prepare for storage fees that’ll make your eyes water, insurance premiums that never end, and a 5-10% haircut when you need to sell. Plus, try buying your weekly shop with a gold ingot.
Paper gold ETFs? They’re classed as Tier 3 assets for a reason – that’s financial speak for “risky as hell.” You don’t own gold, you own a promise. A tradeable IOU. And when everyone wants their gold at once? Good luck with that. So you’re stuffed either way: real gold that’s impossible to use, or fake gold that might not be there when you need it.
Until now.

The truth about inflation

How? Well, when politicians overspend (and they invariably do), they need more money to ‘stimulate the economy’. But raising taxes makes voters angry. So what do they do? They fire up the money printer, and boy do they love to print. To give you a sense of the scale, since 2015 the Bank of England has created £520bn out of thin air through “quantitative easing” (electronic money printing) plus £86bn in physical currency. 

Thing is, more pounds in circulation = each pound is worth less. Think about it: In 2004, £100 could buy you a decent night out, theatre tickets, and a cab home. Today? That same £100 barely covers the theatre tickets. Your money didn’t disappear – it was diluted, like someone’s been topping up your whisky with water when you weren’t looking.

The “2% inflation target” they bang on about? That’s them telling you they plan to steal 2% of your wealth every single year. And calling it healthy.

How TallyMoney actually works?

  1. First things first: we’ve got actual gold bullion* (none of that paper-promise nonsense) locked up tight in a Brinks vault in Switzerland. Yeah, those Brinks – the security legends who’ve been protecting valuables since Queen Victoria was on the throne.

  2. You send your pounds to your TallyMoney account (bye-bye, inflation-addicted fiat!).

  3. We use the global gold spot price to instantly turn your currency into its weight in gold. No hidden or fuzzy exchange rates, just the real market gold price + 1.49% gold purchase fee.

  4. Each milligram of your physical gold = 1 tally (we keep it decimal because no one wants to faff about with troy ounces – the specific unit for measuring gold).

  5. That’s it! Your app shows your balance in tally, but remember – those aren’t just numbers on a screen. That’s your solid gold, in milligrams, sitting pretty in Switzerland.
  6. You can now save and spend your gold as you see fit.

*All Tally gold is sourced from LBMA-accredited providers because we’re rebels with a cause… and standards. Instead of tracking the gold price per kg, your money is directly converted based on the real-time global gold spot price.

TallyMoney is 
real money

  1. Store of value
    Your gold sits in a Swiss vault (not getting ‘quantitatively eased’ away)
    Evidenced by 5,000 years of holding its value
    Can’t be inflated by government whim and fingers on the ‘currency print’ button
  2. Medium of exchange
    Spendable at 150+ million shops worldwide (thanks, Mastercard)
    Currency converts instantly at market rates (no sneaky margins)
    Moves as quickly as sending a text 
  3. Unit of account
    1 tally = 1mg of gold. Simple
    Stable enough to actually plan your future with
    Speaks every currency’s language (gold’s kind of a big deal everywhere)

This is why TallyMoney is so much more than just owning Gold – it’s a real financial revolution. We’re not just helping you own gold; we’re bringing back what money was always meant to be. Sound Money for a Brighter Future. Because your hard work and wealth deserve better than being slowly robbed by external forces.

We want you to have real money

  1. A store of value:
    Keeps its value over time
    Insulated from devaluation/inflation
    Actually rare and can’t be created out of thin air
  2. Medium of exchange:
    Easy to use for everyday transactions
    Widely accepted
    Can be transferred efficiently
  3. Unit of account:
    Works like a proper value-measuring stick (imagine if your ruler shrunk every year – mad, right?)
    Splits nicely into useful bits
    Reliable enough to plan your future with

Why does this matter? Because your hard work deserves better than being turned into monopoly money by someone else’s actions. Every time your currency loses value (inflation) its stealing from your past work, which harms your present savings, and your future dreams.