Barclays Bank Review – High-Yield Savings Accounts
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Barclays Bank is an online-only bank offering savings accounts and CDs.
8/10
Cost
9/10
Features
7/10
Ease of use
9/10
Services
7/10
It is natural to feel overwhelmed when you are looking for banking options. Sifting through all the options with several online banks nationwide can become tedious. If you enjoy banking on the go and want to have your finances at your fingertips, an online bank is a great choice.
Barclays is a global financial institution founded in 1896 in London. The bank offers online financial solutions, including savings accounts and CDs. The bank does not offer checking accounts, money market accounts, or lending products. Like any other bank, Barclays has its set of pros and cons to be aware of before you open an account. In this Barclays Bank review, we help you decide whether the bank is a good choice for your needs.
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What is Barclays Bank?
London-based Barclays has more than a hundred years of history. The global financial service provider is engaged in corporate banking, retail banking, credit cards, and investment banking. The bank has 48 million clients and customers across the globe. The Better Business Bureau has given Barclays an A+ rating.
How does Barclays Bank work?
It is very simple to open an account with Barclays. On the website, you will see its product offerings, and you need to click “Open an account.” All the account owners will require a Social Security number or Taxpayer Identification Number and an external bank routing and account number to fund the account.
You need to choose whether you want to open a single account or a joint account.
Next, you will have to fill in your personal details, including your Social Security Number, Email address, residential address, and occupation. You will also have to create login information.
There is a security question you need to answer, and it will help recover your account in case you forget the password. The bank will also ask if you wish to enroll in two-factor authentication. If you don’t want to, you can opt-out. If you do, you will need a code when you enter your account.
Once you submit the form, you will be asked to provide the external bank account information. This will help fund the Barclays account. You accept the terms and conditions at the last step, and your account is ready.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
How much does Barclays Bank cost?
There are no monthly maintenance fees with Barclays Bank. It also does not have any minimum balance requirements or minimum deposit requirements.
Barclays features
Barclays Online Savings Account
Barclays US offers a high-yield savings account with an annual percentage yield (APY) of 4.35%, five times the national average. It has no minimum balance or monthly maintenance fees. You can easily transfer the funds online to and from the other banks or even set up a direct deposit in your account. Alternatively, you can transfer funds electronically through an ACH transaction. There is no limit to the number of transfers you can make. The bank has a savings assistant to help you set and fund your savings goals. It allows you to set monthly contributions and the current savings amount. It will calculate how long it will take to reach your goal with a constant APY.
Certificate of Deposit
Barclays Bank offers CDs that range from one year to five years. It has no minimum deposit requirement or monthly fees. The APY ranges from 3.50%–5.00%, depending on the tenure. The interest compounds daily, and your money is FDIC-insured. At the time of maturity, the CD will automatically renew at the available interest rate, and the bank will send you an alert mail a month before the maturity of the CD. You also have a 14-day grace period to add funds without any penalty. However, there is an early withdrawal penalty. For CD terms under two years, the penalty will be 90 days simple interest; for terms longer than two years, the penalty is 180 days simple interest. If the penalty exceeds the interest earned, the remaining amount will be deducted from the principal amount.
Credit cards
Barclays partners with many travel and lifestyle brands to issue credit cards. You can find a card that offers rewards, cash back, and special promotions.
Robust digital tools
Barclays Bank is a digital bank that offers the right assets to handle your accounts. It has a highly-rated mobile app that ensures you have complete control of the accounts at your fingertips. You can use the app for mobile check deposits. It also has optimal customer support service and a top-notch mobile banking app. Two types of mobile apps are offered based on the type of products you have with the bank. One is for the accounts, while the other is for credit cards. Both apps are available for iOS and Android.
Efficient account security
Barclays offers an extra layer of security to your bank account. It allows you to choose if you would like to have two-factor authentication. If you opt for it, the app will ask you to provide a code each time you log in.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Who should use Barclays?
- Customers with basic banking needs. If you are looking for a bank that fulfills your basic needs, Barclays could be a good choice. It offers savings and CDs at competitive interest rates, and if interest is your main criterion, it could be an ideal choice.
- Customers who enjoy online banking. Those who enjoy online banking and never need to visit a physical branch will enjoy Barclays Bank.
Who shouldn’t use Barclays?
- Customers who want a checking account. If you want to open a checking account, Barclays isn’t ideal since it only offers a savings account and CDs.
- Customers who prefer brick-and-mortar. Customers who like to head to the bank to get their questions answered will not enjoy the online-only Barclays Bank.
- Customers who seek an end-to-end banking experience. If you are someone who likes to have their savings account, investment, loans, and credit cards all in one place, you will need to look for another alternative since Barclays Bank doesn’t offer that.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Pros and cons
Pros
- Competitive interest rates. Barclays offers a competitive interest rate on its savings account and CDs.
- No monthly fees or minimum deposit requirements. With Barclays, you do not have to worry about any monthly maintenance fees or minimum deposit requirements.
- Achieve your savings goal. Barclays has a savings assistant who can help achieve your short term and long term savings goals.
Cons
- No physical branches. Barclays is an online-only bank and this means it has no physical branches. If you have any questions about the account, you cannot speak to someone in person. However, you can get in touch with the customer executives through the mobile app every day in a week.
- Limited account options. If you are looking for any financial product other than a savings account or CD, Barclays won’t have it for you. It does not offer lending products, money market accounts, or checking accounts.
- No ATMs. Barclays does not have any ATM access and you will always have to use the ATM of other banks if you need cash. Barclays will not reimburse the ATM fees.
Barclays Bank vs. competitors
Bank | Monthly fee | Savings APY | Minimum balance requirement | ATM access |
Barclays | $ 0 | 4.35% | $ 0 | No |
Bank of America | $4.50-$25 | 0.01% – 0.04% | $1,500 daily | Yes |
Citibank | $10-$30 | 4.45% | $ 0 | Yes |
HSBC | $ 0 | 0.01% - 4.50% | $ 1 | Yes |
Bank of America
Bank of America is one of the top banks in the country. However, it comes with a monthly maintenance fee, which can be waived if you meet its requirements. This means a deposit of $250 each month or maintaining a balance of $1,500 daily. It also gives access to ATMs but has a lower APY on the savings account. If you have a higher deposit, you might enjoy a slightly higher APY, but Barclays offers a better APY when compared to Bank of America. If you do not need ATM access and are only looking to enjoy higher interest rates, Barclays could be a better choice.
Citi Bank
Citi Bank offers a wide range of financial products but also comes with high monthly fees. The fees can range anywhere from $10 to $30, depending on the banking products you choose. It has no minimum balance requirement and offers ATM access. However, if you are looking for a competitive banking solution, Citi Bank could be a great choice even with the fees. It also has the best savings rates out of all the banks listed here. So, savers will love Citi Bank, and you can work around low fees by meeting the bank's requirements.
HSBC
HSBC isn’t among the best savings accounts today since it has a very low APY of 0.05% unless you have a Premier Relationship Savings Account (requiring more difficult criteria to be met) but no fees and a minimum balance requirement of $1. A well-known bank with a global presence, HSBC can meet all your banking requirements in one place and gives ATM access. It is known for offering a complete suite of financial services. Again, if interest is your main concern, HSBC is not a good choice, but if you are looking for other products besides the basic savings account, you will find it all with HSBC.
FAQs
How many Barclays online banking accounts can I open?
You can open and maintain a total of 25 accounts in any combination.
Is my money safe with Barclays Bank?
Your money is FDIC insured up to $250,000 in a single account and $500,000 in a joint account. When you use the online banking services or Barclays app, you are protected by the bank’s guarantee. It means that if you state that payment from your account was not authorized and ask for a refund, the bank will reverse the transaction. But there are certain exceptions to this.
What is the maximum amount I can deposit through the mobile app?
The bank has a limit on the amount you can deposit remotely. The daily check maximum amount is $5,000 and the daily account maximum is $10,000. You can deposit a maximum of 10 checks in a day and 20 checks in 10 business days with a maximum limit of $50,000.
The bottom line
Barclays Bank is a good choice for account holders who want to earn interest on savings. It has no monthly fees and no minimum balance requirements. However, it might not be the right choice if you are looking for checking accounts or loans. It is not a bank that will fulfill all your personal finance needs. Accessing cash is also difficult with Barclays because it does not have a checking account, and you cannot transfer money between two accounts. You will have to transfer the funds to an external bank and then swipe your debit card.
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Writer
Vandita Jadeja is a financial writer and editorial assistant at Joywallet. She loves to read and write about money and brings 7 years of experience from the financial industry. She loves coffee, mountains and sunsets.
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