Barclays Bank Review: High-Yield, No-Fee Savings
- The online savings account pays 0.70% APY, which is higher than most competitors
- CD rates as high as 0.80% APY
- No monthly maintenance fees
- No minimum balance requirements
- Barclays Bank offers savings accounts and CDs only
- No mobile app
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. 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, Del., which is also home to the credit card and payment group. Barclays has won a couple of GOBankingRates awards for 2022, ranking in the Best Online Banks and Best Savings Accounts categories.
The Barclays Bank Online Savings account offers a 0.70% APY interest rate, with a $0 minimum balance to earn that APY. It ranks No. 18 in the GOBankingRates Best Savings Accounts study, due to the lack of fees and competitive interest rate.
There is no minimum balance required to open an online savings account. Funding the account is possible by setting up direct deposits or making transfers from other banks.
To make withdrawals, you’ll need to make an electronic or ACH transfer since Barclay does not issue debit cards for the account. Keep in mind that there is a limit of six free transactions per month due to federal regulations.
Certificates of Deposit
Barclays Bank 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%. For CDs with terms of 12 months and higher, the interest rate is tiered between % and % APY.
A Barclays CD doesn’t come with any unique features. The interest rate is about average for most banks, but potentially low for an online-only financial institution.
Barclays Bank’s U.S. offerings are limited. However, its rates, fees, accessibility and online platform stand out as its strongest aspects. The no-fee savings account with a competitive rate of 0.70% is a large part of why Barclays ranks as one of the best savings accounts available.
The online platform is easy to use and makes it possible to open and fund a CD or savings account in minutes. Although a debit card isn’t available, transfers between banks are possible and easy to set up as alternatives to ATM withdrawals.
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.
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 to your external account within two to five days of you adding the link to your Barclays account. Then you will need to log into 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 Barclays account. It also means you will have to wait for two to five business days before you can fund your Barclays account.
If you’re having trouble setting up an account or have questions, customer service can be reached by calling 1-888-710-8756.
Accessibility and Branch Availability
Barclays doesn’t have any branches in the U.S. The bank is online-only in the U.S.
Barclays Bank is unusual in that it offers only online savings products, but no mobile app. 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, which requires that you first set up the external account and link it to your Barclays Bank account. This process can take several days.
- Use Barclays Bank’s Deposit Checks through Online Banking. When you are logged into 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. To do this, 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.
How to Open an Account
To open a Barclays CD or savings account you’ll need to apply online, provide personal and contact info including your Social Security number and fund the account by entering your bank account and routing number.
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 transaction fee||$5 each after 6 transactions in a month|
|Returned deposit item||$5|
|Non-sufficient funds (NSF) fee||$5|
Barclays Bank vs. Competitors
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 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. Barclays 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 0.70% APY, however, beats 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 can still earn 0.70% 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.
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 FDIC, up to the 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 many Barclays Online Banking accounts can I have?
- You can have up to 25 online accounts at Barclays Bank.
- 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?
Karen Doyle contributed to the reporting for this article.
This article was updated on April 14, 2022, to clarify the minimum balance needed to earn APY on the high-yield savings account. This article was updated on May 4, 2022, to update Barclays CD rate APYs.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Jan. 3, 2022.
Editorial note: 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.