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Barclays Online Savings Account Review: High Interest Rate and No Minimum Deposit Required

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With interest rates on savings accounts as low as they currently are, it pays to shop around for the best online savings account. If you want a to open a savings account online — one with a good interest rate and no fees — and you don’t mind not being able to access your money on the spot, consider the Barclays Online Savings Account.

Barclays is based in the U.K., with its online banking operations headquartered in Wilmington, Del. In the U.S., Barclays only offers online personal banking, so there are no retail branches in the country. The Barclays Online Savings Account features one of the best savings account rates, with no minimum balance required to open. It doesn’t charge account maintenance fees, and avoidable fees for excess withdrawals and insufficient funds are reasonable. Here’s everything you need to know about this Barclays product, so you can decide whether to open this online savings account.

Barclays Online Savings Account Pros

Barclays online savings account pays APY. As far as savings account interest rates go these days, that’s pretty good: The current national interest rate for savings is just 0.06% APY. No minimum balance or deposit is required to open the account, but in order for interest to post to your account, you must maintain a balance high enough to earn at least $0.01 in interest. To earn $0.01 per month in interest, you need to maintain a balance of $10: $10 x 1.20% ÷ 12 months = $0.01 per month.

In addition to a highly competitive interest rate and minimal requirements, the Barclays online savings account offers other advantages. Here are some of the other benefits that come with a Barclays account:

Check Out: Pros and Cons of Online Savings Accounts

Barclays Online Savings Account Cons

Before investing in this savings account from Barclays, you should have a full understanding of its drawbacks. For one, you cannot physically deposit or withdraw money from your Barclays Online Savings Account. For some people, this might be a disadvantage; but for others who want to avoid the risk of spending their savings, this detail could be an advantage. Because you can’t access your funds from an ATM on any street corner, your savings could stay in the bank for longer.

So you can better decide if this account is right for your financial strategy, check out some of its disadvantages. Here are the drawbacks of the Barclays Online Savings Account:

Depositing and Withdrawing Money From a Barclays Online Savings Account

If you decide to take advantage of the account’s high interest rates despite its drawbacks, you’ll need to know how to deposit and withdraw money to and from your account. Here’s how to deposit and withdraw money from your online savings account:

See: Online Banks vs. Traditional Banks — Where to Get the Best Interest Rates

As this review shows, The Barclays online savings account has one of the best savings account interest rates you can get, and no fees so you keep more of the money you earn. If you can live without ATM access and mobile banking, you can earn a good return on your money.

Barclays Bank rates are accurate as of today.