Finance

Barclays Bank Review: High Rates for Savings

Karol Nowak

0 6 3 minutes read

Barclays

Product Name: Barclays Bank

Product Description: Barclays Bank is an international bank with strong interest rates on savings and CDs.

Go to Barclays Bank

Summary

Barclays Bank is offering a $200 bonus to open a Tiered Savings account and deposit $25,000. It offers competitive interest rates on its savings accounts and CDs.

Pros

Competitive interest rates
No monthly fees
No minimum balance requirements
Flexible deposit and withdrawal methods

Cons

No checking accounts
Doesn’t offer minor accounts
Online-only
No IRA retirement accounts

Everyone wants a great interest rate on their savings. But along with a good return, it’s important to do business with a bank that’s accessible and trustworthy.

Barclays high-yield savings account earns a competitive yield and doesn’t have fees or account minimums. But as with many online banks, you may notice limitations with the offered products.

In this review of Barclays US online bank, I’ll cover the strengths and weaknesses and present you with a few online banking alternatives to consider. Are you ready? Let’s get started!

At A Glance

High interest rates on savings
Low fees
Savings, CDs, credit cards, and personal loans are available. No checking accounts.

Who Should Use Barclays

Barclays is worth considering if you want to earn a competitive interest rate 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 receive a debit card or paper checks.

If you’re fine with using Barclays for savings only, then it’s one of your best options for the following reasons:

Earn competitive yields
No minimum balance requirements
Zero account service fees
24/7 online account access
Up to $250,000 in FDIC insurance

Barclays Alternatives


Top APY	3.80% APY	4.70% APY	3.90% APY
Monthly fee	$0	$0	$0
Minimum deposit	$0	$100	$0
	Learn more	Learn more	Learn more

Table of Contents

Barclays Alternatives

Who is Barclays Bank?

Barclays is an international bank with its head office in London. In the United States, it offers online banking and credit cards.

Operating in the US as Barclays Bank Delaware, its online banking accounts are FDIC insured (FDIC Cert# 57203).

Wealth management and corporate finance are also available, but this review only covers Barclays savings accounts and how you can earn a high interest rate on online-only savings accounts and Certificates of Deposit (CDs).

Learn more about Barclays

Who Can Join?

Barclays US banking accounts are open to United States residents at least 18 years old. Unfortunately, it’s not possible to open minor accounts. 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.

Bank Fees

There are no fees on any Barclays account, including their certificates of deposit.

For example, you will never pay the following:

Account maintenance fee (monthly service fee)
Inactivity fees
Minimum balance fee

The only fee you might encounter is for early CD redemptions:

90 days of simple interest for terms shorter than 24 months
180 days of simple interest for terms longer than 24 months

Deposit Account Options

Barclays offers clients two options to save their extra money and earn more interest – an online savings account and certificates of deposit (CDs) with terms ranging between 1 and 5 years. Let’s take a closer look at both products.

Tiered Savings

Barclays also has a Tiered Savings account where the interest rate you earn is based on the balance in the account. The rate is if you have a balance of at least $250,000, otherwise you’ll earn , which is still good.

It is one of today’s best yields. Moreover, it’s significantly higher than what brick-and-mortar banks offer, and you don’t have to worry about monthly service fees or minimum balance requirements.

You can also get a $200 bonus if you open the account by 1/6/2025 and deposit $25,000 within 30 days of opening the account and maintain at least $25,000 in that account for 120 days.

Deposit Amount	Savings Rate
Less than $10,000
$10,000 to <$50,000
$50,000 to <$250,000
$250,000+

Some of the best account features include:

Can make unlimited withdrawals per month
Can receive direct deposits and mobile check deposits

Barclay’s unlimited withdrawals are a nice feature, given that most high-interest savings accounts are limited to six monthly transactions.

It’s also easy to deposit new funds into your account. While your new balance begins earning interest immediately, Barclays will hold your deposits for five business days before they can be withdrawn.

Online CDs

You may also consider placing money you don’t need for at least 12 months into a Barclays certificate of deposit.

Barclays offers term CDs from 6 months to 60 months.

6 months: 4.00% APY
12 months:
18 months: 3.25% APY
24 months: 3.00% APY
36 months: 3.00% APY
48 months: 3.00% APY
60 months: 3.25% APY

Unlike many bank CDs, there are no minimum deposit requirements, so you can easily make a CD ladder. Typically, it’s not uncommon for banks to require at least $1,000 to open a CD – so this low limit is great.

As you’re committing your money for a preset period, you receive a higher APY than the online savings account that lets you make withdrawals on demand. The CDs have an early redemption fee of at least 90 days of interest applies if you don’t wait for the CD to mature.

As of this writing, Barclays does not offer a no-penalty CD.

While you can earn a competitive interest rate, US Treasury Series I Bonds might be a better option as the yields are substantially higher while inflation rates remain elevated.

The minimum holding period for I Bonds is 12 months, but you must hold for 60 months to avoid an early redemption penalty of 90 days’ interest. So, the holding periods are similar to CDs, but you can potentially earn a staggeringly higher yield.

Learn more about Barclays

Reader Experiences with Barclays

We had a reader, Walter, send in his positive experiences with Barclays:

You asked about the Barclays offer…

I was so intrigued that I forwarded it to my daughter (age 24 and has a healthy savings account, still in a Huntington “savings” account that might as well pay nothing at all) and urged her to read over your info.

I try not to push, but she might as well have her savings work for her and I hope she takes advantage of their offer…$200 to start a good savings plan is just a very good deal.

I have had an active Barclays on-line savings plan (tied to my checking) for years and I find it safe and efficient. I treat it as our emergency fund and rarely have had to dip into it. Meanwhile, it chugs along at a very nice (not the top rate, but one I am comfy with) interest rate and is now making us some real money.

Just this week I added $600 and it took about 5 minutes. Sign in to Barclays (I use double authentication for safety), type in the amount for transfer and when you want it done. Boom. I get a near instant e-mail that says the transfer took place (and this is from my local, bank based checking account—that still prints me free checks).

Barclays provide very handy on-line tax forms at the end of the year. Print out for tax verification, etc.

I have had no issues/problems with them for many years, so here is my testimonial.

Additional Features

While you won’t get in-person branch access, Barclays has several tools to make it easier for you to bank online. Here are some of the features you can expect to see after opening a Barclays account.

Savings Assistant

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.

CD Calculator

The Barclays CD Calculator lets you quickly see how much interest you will earn if you open a CD. This tool can be vital if you’re living on a fixed income or want to know precisely how much short-term investments make.

Check Deposits

The Deposit Checks feature lets you easily upload paper check images from a computer, tablet, or phone. You can instantly start earning interest on these deposits, and it’s another reason you don’t need local banking access.

Mobile App

The Barclays US Savings app is available on the Apple App Store and Google Play Store. This app makes it easy to bank and remote deposit checks on the go.

Additionally, this app is different than the one you might use for Barclays-issued rewards credit cards.

Learn more about Barclays

Barclays Alternatives

Depending on what you’re looking for, the following online banks can offer more services and potentially higher yields.

Ally Bank

Ally Bank, has a high-yield savings that earns 3.80% APY on all balances with no minimum or monthly fees. It also offers a checking account, money market, and CDs, all at competitive rates with no monthly fees.

There are no minimum deposits for these accounts, and unlike with 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 information.

Go to Ally Bank

CIT Bank

CIT Bank offers many savings account options, including its Platinum Savings, which earns 4.70% APY if you have at least $5,000 in the account. If you don’t typically have $5,000 in savings, you can opt for the Savings Connect account, which earns 4.35% APY on all balances. Both accounts have a $100 minimum opening deposit.

For more flexibility, you may consider the money market and eChecking accounts which provide debit card access and up to $30 monthly ATM fee reimbursements.

For more information, check out our CIT Bank review.

Go to CIT Bank

Discover Bank

Discover® Bank offers a high-yield savings account that earns 3.90% APY with no balance requirements or monthly fees. First-time members may be able to earn bonus cash by visiting our Discover Bank promotion page.

You can also open a free checking account that earns debit card rewards (up to 1% back) and access 60,000 surcharge-free ATMs.

Read our Discover Bank review for more.

Go to Discover

Is Barclays Bank Worth It?

Barclays is a solid choice if your only priority is getting the best possible rate on a savings account or CDs. Their rates are among the highest available, and comparable to 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 can’t write any checks or use a debit card. It’s strictly a savings account.

FAQs

What are the Barclays Bank customer service options?

Toll-free phone support is available daily from 8 AM to 8 PM Eastern. There are also many common questions in the online FAQ sections.

How many Barclays Bank branches are in the USA?

There are no brick-and-mortar branches for retail customers in the United States. However, there are locations across the country for wealth management and corporate clients.

Is Barclays Bank safe?

The 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’s essential to remember that no bank is risk-free.

Final Thoughts

Barclays is an excellent option if you’re looking for top rates on high-yield savings accounts and CDs. But, unfortunately, you won’t be able to switch all your banking to this platform as they don’t offer checking accounts.

That said, some people like separating their savings from their other banking. You may not want to keep your long-term savings and spending account under the same umbrella if you struggle to save your disposable income.

Learn more about Barclays