Tally Introducing Free Automated Savings Service

Home » FinTech » FinTech News » Tally Introducing Free Automated Savings Service

Tally Introducing Free Automated Savings Service

Something that often gets lost in all the talk and controversy surrounding FinTech is that many of the companies wearing that label aim to improve the financial lives of their users, not hurt them. From making investing more accessible to giving consumers more effective tools for getting out of debt, there are numerous apps that provide a real service to their users. One popular method employed by many of these services is automation, which also happens to be the star of an upcoming expansion from four-year-old startup Tally.

As Fortune reports, Tally is now preparing to launch a new automated savings service. Just as it sounds, this app will allow users to arrange automated transfers from checking to a savings account on a weekly basis. While this isn’t exactly a new concept, Tally boasts that the feature will work with any bank or credit union in the United States. Plus, unlike some of its competitors, Tally’s new product will also be free to use.

To be sure, even outside of those paid services, there are other free apps that provide automated savings. Among them is Clarity Money, which was actually purchased by Goldman Sachs last year. One of the results from that acquisition was that Clarity users can now elect to upgrade their automated savings accounts to Marcus by Goldman Sachs accounts and currently earn a 2.25% APY on their money. Meanwhile Tally says their service won’t pay interest, although funds will be FDIC insured thanks to their bank partners.

Incidentally part of the decision not to offer interest on their new product is that, according to Tally co-founder and CEO Jason Brown, the startup expects to lose money on this venture. Brown told Fortune, “It’s actually reasonably expensive to provide this service to people.” However he added, “Because we have a strong revenue model it allows us to give away some of the automation for free.” He went on to say that Tally will lose some money with each customer that joins their new app, while assuring that the bill wasn’t large enough that they’d need to start charging for the service in the future.

Looking beyond the upcoming savings product — interested individuals can join the waitlist at MeetTally.com — Brown shared a vision of automating other aspects of personal finance. He said the ultimate goal would be “completely outsourcing financial decision-making and work.” Brown went on to assert, “We’re now in a sprint to full financial automation.”

Candidly, as a frequent observer of the FinTech sector, the description of Tally’s automated savings plan on paper doesn’t seem all that innovative (their billing of the product as “the only free automated savings service” is also questionable). That said the idea of bringing greater automation to finance as a way to help consumers manage their money is definitely intriguing. Perhaps there’s more to Tally’s upcoming app than meets the eye and, more importantly, will lead to much more down the road.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Small Business Commercial Insurance Satisfaction Reaches New High

Anyone who's ever owned a small business can tell you about the importance of having insurance. At the same time purchasing policies and dealing with insurance companies has never traditionally been any entrepreneurs favorite pastime. Despite that a new study by J.D. Power finds that more business owners are satisfied...

IRS Reportedly Cracking Down on Unreported Crypto Income

Following the big Bitcoin boom of 2017, April 2018 saw several reminders that cryptocurrency gains needed to be reported on tax filings. Of course by that time the price of Bitcoin was about half of what it was just a few months before. Nevertheless it seems that the IRS is...

Q2 2019 Sets Record for $100 Million+ FinTech Fundings

Over the past few months, it seems as though several FinTechs have managed to close impressive funding rounds. From FinFit's $7 million Series B last month to Affirm's whopping $300 million Series F back in April, observers could probably guess that's it's been a fairly good month for these startups....