Everyone wants a good interest rate on their savings. But with a good return, it is important to do business with a bank that is accessible and trustworthy.
The Barclays High-Yield Savings Account earns a competitive yield and has no fees or account minimums. But like many online banks, you may see limits on the products offered.
In this Barclays US Online Bank review, I’ll cover the strengths and weaknesses and present you with some online banking options for you to consider. Are you ready? let’s get started!
Table of Contents Who is Barclays Bank? Who can use Barclays Bank? Who can join Barclays? Barclays Bank FeeAccount OptionsOnline SavingsOnline CDAdditional Barclays Bank FeaturesSavings Assistant CD CalculatorCheck DepositsMobile AppKnow the pros and cons of Barclays Bank about Barclays Bank. Who is Barclays Bank on Barclays Bank?
Barclays is an international bank with its head office in London. In the United States, they provide online banking and credit cards to individuals.
Operating as Barclays Bank Delaware in the US, its online banking accounts are FDIC insured (FDIC Cert# 57203).
There are also wealth management and corporate finance, but this review only covers Barclays savings accounts and how you can earn high-interest rates on online-only savings accounts and certificates of deposit (CDs).
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Who should use Barclays Bank?
Barclays is worth considering if you want to earn competitive interest rates on your short to medium term savings.
Unfortunately, Barclays doesn’t offer checking accounts, and there are no brick-and-mortar branches. As a result, you won’t be able to use Barclays for your daily banking needs such as paying bills, as you won’t be receiving debit cards or paper checks.
If you’re okay with only using Barclays for savings, it’s one of your best options for the following reasons:
Earn competitive income No minimum balance requirementZero account service fee24/7 online account access Up to $250,000 in FDIC insurance
If you’re chasing the highest savings account rates, Barclays Online Savings currently offers 2.25% APY (as of 9/28/2022) on your entire balance.
Who can join Barclays?
Barclays US Banking accounts are open to residents of the United States who are at least 18 years old. Unfortunately, opening small accounts is not possible. However, parents can open up to 25 savings accounts which can be an indirect way to track a child’s savings balance and earn an industry leading yield.
barclays bank fee
There is no charge on any Barclays account including their Certificate of Deposit.
For example, you would never pay the following:
Account Opening Fee Account Maintenance Fee (Monthly Service Charge) Inactivity FeeMinimum Balance Charge
The only fee you will face is for the initial CD redemption:
90 days simple interest for tenure less than 24 months 180 days simple interest account option for tenor more than 24 months
Barclays offers customers two options to save their extra money and earn more interest – an online savings account and certificate of deposit (CD) with tenures ranging between 1 to 5 years. Let’s take a closer look at both products.
Barclays Online Savings is the cornerstone of this online bank and the best reason to start depositing your cash here.
Your entire deposit earns up to 2.25% APY (as of 9/28/2022), one of the best returns today. Plus, it’s significantly higher than that of brick-and-mortar banks, and you don’t have to worry about monthly service fees or minimum balances.
Some of the best account features include:
Can make unlimited withdrawals per month Up to 25 accounts can receive direct deposit and mobile check deposit
Barkley’s unlimited withdrawals are a nice feature, considering that most high-interest savings accounts are limited to six monthly transactions per federal law.
It’s also easy to add new funds to your account. While your new balance begins accruing interest immediately, Barclays will keep your deposit for five business days before withdrawing it.
You may also consider keeping the required funds in a Barclays certificate of deposit for at least 12 months.
Barclays offers CDs ranging in duration from 12 months to 60 months.
You can earn at least 3.05% APY for 12 months CDs and longer tenures.
12 Months: 3.05% APY18 Months: 3.10% APY24 Months: 3.15% APY36 Months: 3.20% APY60 Months: 3.50% APY
Unlike many bank CDs, there are no minimum deposit requirements, so you can easily build a CD ladder. Generally, it is not uncommon to fund a CD opening of at least $1,000.
As you are depositing your money for a predetermined period, you get a higher APY as compared to an online savings account which lets you make withdrawals on demand. Remember that if you don’t wait for the CD to mature, an early redemption fee of at least 90 days of interest applies.
While you can earn a competitive interest rate, US Treasury Series I bonds may be a better option because the yield is significantly higher while the rate of inflation remains high.
The minimum holding period for an I bond is 12 months, but you need to hold off for 60 months to avoid the early redemption penalty of 90 days of interest. So, the holding period is similar to that of a CD, but you can potentially earn a higher yield.
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Additional Barclays Bank Features
While you won’t get access to the branch in person, Barclays has a number of tools to make it easier for you to bank online. Here are some of the features you can expect to see once you open a Barclays account.
You can easily create savings goals using the savings assistant tool. This feature lets you estimate how quickly you can achieve your goal at your current savings rate.
The Barclays CD Calculator lets you quickly see how much interest you will get if you open the CD. This tool can be important if you are living on a fixed income or want to know how much a short-term investment is worth.
The Deposit Check feature lets you easily upload paper check images from a computer, tablet or phone. You can start earning interest on these deposits right away, and that’s another reason why you don’t need local banking access.
The Barclays US Savings app is available on the Apple App Store and Google Play Store. This app makes it easy to do bank and remote deposit checks on the go.
Additionally, this app is separate from the app you can use for rewards credit cards issued by Barclays.
Pros and Cons of Barclays Bank
Barkley’s has a lot to offer dedicated savers if you can get past its limited product offering, which doesn’t include checking accounts and IRAs. Here is my list of pros and cons of this online bank.
Competitive interest rates No monthly fees No minimum balance requirements Flexible deposit and withdrawal methods
No checking accountDoes not offer minor accountsOnline onlyNo IRA retirement accounts
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Barclays Bank Alternatives
Depending on what you’re looking for, the following online banks may offer more services and potentially higher returns.
At Ally Bank, you can enjoy high-yield savings, money market accounts and interest-bearing checking accounts.
There is no minimum deposit for these accounts, and unlike Barclays, IRA CDs are also available. Additionally, you can invest through Ally Invest with commission-free trades and powerful research tools. Read our full Ally Bank review for more details.
CIT Bank offers several savings account options, including a high-yield Savings Connect account with a $100 minimum deposit requirement.
For more flexibility, you can consider money market and eChecking accounts that offer debit card access and $30 monthly ATM fee reimbursement. For more information, see our CIT Bank review.
Discover Bank offers a high-yield savings account with no balance balances and competitive yields. First time members may be able to earn bonus cash by visiting our Discover Bank Promotions page.
You can also open a free checking account that earns debit card rewards (up to 1% back) and use 60,000 surcharge-free ATMs. Read our Discover Bank review for more.
Is Barclays Bank Worth It?
Barclays is a solid option if your only priority is to get the best possible rate on a savings account or CD. Their rates are among the highest available, and on par with Ally Bank, a top competitor.
At the time of this writing, both companies have the same online savings interest rate. Their CD rates are close as well.
The only knock against Barclays is that there is no checking account. This means you cannot write a check or use a debit card. It is purely a savings account.
Barclays Bank FAQs What are the Barclays Bank customer service options?
Toll-free phone support is available daily from 8 a.m. to 8 p.m. Eastern. There are also many FAQs in the online FAQ sections.
How many Barclays Bank branches are there in United States of America?
There are no brick-and-mortar branches for retail customers in the United States. However, there are locations for wealth management and corporate clients across the country.
Is Barclays Bank safe?
US-based Barclays Bank Delaware is FDIC-insured. If the institution fails, up to $250,000 in balances are eligible for FDIC insurance. This bank is part of an international platform with a positive reputation, but it is important to remember that no bank is risk free.
Final Thoughts on Barclays Bank
Barclays is an excellent option if you’re looking for top rates on high-yield savings accounts and CDs. But, unfortunately, you will not be able to switch all your banking to this platform as they do not offer checking accounts.
That said, some people like to separate their savings from their other banking. If you struggle to save on your disposable income, you might not want to keep your long-term savings and spending accounts under the same umbrella.
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Strengths Competitive interest rates No monthly fees No minimum balance requirements Flexible deposit and withdrawal methods Weaknesses No checking accounts Offer modest accounts Online-only No IRA retirement accounts