Barclays Bank Review: Competitive Rates, No-Fee Savings
- The Barclays Online Savings account pays 0.45% annual percentage yield, which is higher than most competitors.
- There are no monthly maintenance fees.
- Barclay accounts have no minimum balance requirements.
- Barclays Bank offers savings accounts and CDs only.
- You can’t have all your accounts in one place.
About Barclays Bank
Barclays Bank was founded in 1690 in London. The global bank offers retail banking, credit cards, wealth management, investment banking and corporate banking. Barclays introduced the first ATM in the world.
In the United States, Barclays offers online retail banking for savings products as well as investment banking and wealth management. The online banking business is based in Wilmington, Delaware, which is also home to the credit card and payment group. In addition, GOBankingRates named Barclays Bank one of the Best Online Banks of 2021 in its annual Best Banks rankings.
Barclays Bank Products
Barclays Bank offers just two banking products in the US: an online savings account and a CD account.
|Savings Account||High interest rate|
|CD Rates||Guaranteed rate|
Barclays Savings Account
The Barclays Online Savings account offers a 0.40% APY interest rate regardless of your balance. There is no minimum deposit required to open an online savings account.
- Transfer online to and from other banks
- Direct deposit for automatic savings
- GOBankingRates ranked it one of the Best Savings Accounts of 2021.
- Pays 0.40% APY interest
- No minimum balance
- No monthly maintenance fees
- Limit of six free transactions per month
- No in-person deposits
Barclays CD Account
Barclays Online CDs are available in terms ranging from three to 60 months. For CDs with terms of three, six or nine months, the interest rate is 0.10% APY. For CDs with terms of 12, 18, 24, 36, 48 or 60 months, the interest rate is 0.25% APY.
- Predictable returns
- Higher interest for longer terms
- Guaranteed interest rate
- FDIC insured to the maximum of $250,000 coverage per depositor
- Low interest rate for an online-only bank
With just two products, you will need to move money from another bank to fund your Barclays savings or CD account. Because all transactions are online, Barclays will verify your external account before transfers can be made. To do this, Barclays will send two test deposits of less than $1.00 to your external account within two to five days after you add the link to your Barclays account. Then you will need to log in to your Barclays account and report the amount of the test deposits.
This process ensures that you have access to the external account you are using to fund your Barclay’s account. It also means that you will have to wait for two to five business days before you can fund your Barclay’s account.
Barclays Bank is unusual in that it offers only online savings products. You can open and fund your account online by transferring money electronically from another account. To add to your account, you can set up direct deposit, transfer from an account at another bank or use Barclays Bank’s Deposit Checks feature, which entails uploading pictures of the front and back of the check to your online account.
How To Make a Deposit
There are four ways to make a deposit into a Barclays Bank account.
- Transfer the funds from an external account into your Barclays Bank account. This requires that you first set up the external account and link it to your Barclays Bank account — a process that can take several days.
- Use the Deposit Checks feature through Barclays Online Banking. When you are logged in to your account, select the “Deposit Checks” tab. Enter the information about your check, and upload pictures of the front and back of the signed check. Then submit your deposit.
- Set up direct deposit into your Barclays Bank account. You will need to provide your Barclays Bank account number and routing number (031101321) to the entity that is originating the direct deposit.
- Mail a check to Barclays, P.O. Box 4538, Carol Stream, IL 60197.
Customer Service Hours: 8:00 a.m. to 8:00 p.m. seven 7 days a week
Customer Service Number: 888-710-8756
Routing Number: 031101321
Promotions: Newest Barclays’ Promos and Bonuses
Hours: See Barclays’ Hours
Login: Barclays Login Help
Barclays Bank Fees
Barclays Bank assesses fees for certain transactions. These fees are relatively low compared to other banks, but it should be noted that non-sufficient funds items are always returned. Barclays Bank does not allow overdrafts.
|Excessive Transactions Fee||$5 each after 6 transactions in a month|
|Returned Deposit Item||$5|
|Non-Sufficient Funds Fee||$5|
Barclays Bank vs. Competitor Banks
When deciding where to bank, you have many choices. It makes sense to compare several options to find the one that’s best for you. Here are some competitors to Barclays Bank and a look at how they stack up.
|Barclays Bank||High interest rate on saving accounts|
|Ally Bank||High rates on all products|
|Santander Bank||Branches and ATMs in the Northeast and Florida|
|HSBC||Relationship banking services|
Barclays Bank vs. Ally Bank
Ally Bank offers higher interest rates on all products. including checking and money market accounts. Barclay’s Bank has a long history and a significant presence in the investment banking arena, so Barclays is a good choice for those who may be concerned about stability.
Barclays Bank vs. Santander Bank
Santander Bank has over 575 branches and 2,000 ATMs throughout the Northeast and Florida, so it’s a solid choice for those who live in those areas and want to do their banking in person. The Barclays Bank interest rate on savings accounts of 0.40% APY, however, easily outshines Santander’s 0.03% APY.
Barclays Bank vs. HSBC
HSBC offers relationship banking, including better interest rates if you have $75,000 in deposit or investment accounts, $5,000 in monthly direct deposits or a $500,000 mortgage. At Barclays Bank, by contrast, you can have a single savings account with a small balance and still earn 0.40% APY.
Barclays Bank is a good choice if you want to keep your savings and/or CD accounts separate from your checking account. The interest rate on the online savings account is competitive and is not dependent on having a minimum balance. The fact that Barclays Bank has a large investment banking arm and worldwide presence bodes well for its long-term success.
The Barclays Bank Online Savings account offers a competitive interest rate of APY and has no monthly maintenance fee or minimum balance requirement. This account could be a good choice if you are saving for a specific goal and want to keep the account separate from your other accounts. You can set up periodic automatic transfers from another account and just forget about it until you reach your savings goal.
FAQHere are answers to some of Barclays' more commonly asked questions.
Is Barclays American or British?
- Barclays Bank is a British bank. Barclays Bank of Delaware is a division of Barclays Bank that conducts business in the United States.
Are Barclays Bank of Delaware accounts FDIC insured?
- Yes. Barclays Bank accounts are insured by the Federal Deposit Insurance Corp. up to the $250,000 maximum amount allowed by law.
Are there fees for Barclays accounts?
- There are no monthly maintenance fees or annual fees for Barclays accounts. Fees may be assessed for excessive savings account withdrawals, early withdrawal of a CD or other reasons.
How long are deposits on hold?
- Deposits made to a Barclays Bank account will be held for five business days before the funds are available. This applies to both electronic deposits and checks.
Does Barclays offer free money for signing up for an account?
- Right now, Barclays does not have any account opening bonus promotions, but it has been known to offer promotions in the past. Check the website for details.
Can I Get Free Money From Opening a Checking Account?
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of 12/8/2020.
This content is not provided by Barclays Bank. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Barclays Bank.