Barclays Bank has been in business since the 1600s, mainly in the United Kingdom, and over the centuries has received worldwide notoriety for their retail banking and credit card services. In 2012, they branched into their newest venture of offering easy, low fee, high-yield online savings for their customers around the globe.
As a newer player in the online banking world, Barclays is currently offering an online-only savings account with a competitive APY (0.45%!) and no minimum deposit required to sign up.
So… What are the ins-and-outs of Barclays online savings – and how does it really stack up against the competition? Read more to find out…
What Is A Barclays Online Savings Account ?
Barclays describes their bank as, “A transatlantic Consumer, Corporate and Investment Bank anchored in the two financial centers of the world, London and New York.”
Barclays Bank is currently offering their US customers an online-only savings account experience with an annual percentage yield (APY) of 0.45% – which is much higher than the current national average.
Because Barclays US Savings Accounts operate solely online, a lot of overhead is eliminated which makes them able to offer flexible requirements and higher APYs than a traditional bank. This point alone certainly makes Barclays a viable place for customers to stash away their extra funds and see a significant return on their investment if they continue to make regular deposits.
What is the the APY for a Barclays Online Savings Account?
The current annual percentage yield (APY) for a Barclays Online Savings Account is 0.45%, with interest compounded daily.
Do Barclays Online Savings Accounts Have A Service Fee?
Barclays online savings account do not currently have a monthly service or maintenance fee.
What is the Minimum Deposit to open a Barclays Online Savings Account?
There is no minimum deposit required to open an online savings account with Barclays.
How Do I Deposit and Withdraw Money From A Barclays Online Savings Account?
Here are the ways you can deposit and withdraw money from a Barclays online savings account; For instance,
- Mail in physical checks to: Barclays P.O. Box 4538; Carol Stream, IL 60197
- Mobile Deposit
- Wire Transfers
- as well as Direct Deposit
- Request a physical check be mailed to you
- Mobile Transfers
- as well as Wire Transfers
What Are Barclays Online Account Fees?
Here is a breakdown of fees associated with Barclays online savings accounts:
|Excessive Transactions||6 free withdrawals per billing cycle, then $5 for each withdrawal or transfer thereafter|
|Returned Deposit Item||$5/item. They will not charge more than $50/day.|
|Statement Copies||$0.50 per statement|
|Express Mail/ Rush Charge||$25|
What Are The Benefits of A Barclays Online Savings Account?
- High APY
- No minimum deposit required and no minimum monthly balance
- 24/7 mobile and online access to your money
- No minimum balance to earn interest
- No maintenance fees
- Customer Service is available 7 days/week
- Easily transfer funds online to and from other banks
- Link up to 3 external accounts per owner
- Access to tools to help you save (such as their savings assistant)
- Also, opportunities to earn bonus interest for saving responsibly
- Non-sufficient funds fee is only $5; many banks charge $30 or more for similar fees
What Are The Disadvantages of A Barclays Online Savings Account?
- No ATM network (and only 5 branch locations) for US customers
- No accompanying checking account is available for Barclays US customers
- Inability to deposit or withdraw cash
- Limited to 6 withdrawals per billing cycle
- Deposited funds are held for 5 business days from the day you make the deposit and your account is credited
While 0.45% is a higher than average APY, there are competitors out there that offer even higher APYs or better perks that you might also want to consider…
As of January 2021, here are some rates from competitors that you may want to check out:
- Aspiration Bank – 1.00% APY
- First Foundation Bank Online Savings – 0.75% APY
- Vio Bank – 0.66% APY
- TAB Bank – 0.65 % APY
- Synchrony Bank – 0.60% APY
- CIBC Bank – 0.52% APY
- Ally Bank – 0.50% APY
- American Express Personal Savings – 0.50% APY
- Citi Accelerate – 0.50% APY
- Citizens Access – 0.50% APY
- Discover – 0.50% APY
- Goldman Sachs – Marcus Account – 0.50% APY
- Barclays Bank – 0.45% APY
- CIT Bank Savings Builder – 0.45% APY
- MySavingsDirect – 0.45% APY
- TIAA Bank – 0.45% APY
- Capital One 360 Performance Savings – 0.40% APY
- HSBC Direct – 0.15% APY
Is A Barclays Online Savings Account FDIC-Insured?
Yes. Barclays Online Savings Accounts are provided by Barclays Bank Delaware.
Barclays Bank Delaware is a FDIC member. Therefore, any funds deposited into a Barclays Online Savings Account are insured up to the maximum allowed by law.
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions. Furthermore, the FDIC insures deposits according to ownership category (such as individual, joint or accounts with beneficiaries). The current maximum amount is $250,000 per depositor, per insured bank, for each account ownership category.
How Do You Open A Barclays Online Savings Account?
To open an account with Barclays, you must be at least 18 years old, a U.S. citizen or a resident alien with a valid Social Security Number or other Taxpayer Identification Number, have a valid bank account and have a residential address in the United States.
You will need the following personal details:
- Date of birth as well as Social Security Number
- Primary home address as well as a valid email address
- Valid phone number
- Bank account number and routing number of the account you plan to use to fund your savings account
- If you are opening a joint account: the joint account holder needs to be present to apply
If you meet the above criteria, you can proceed to the online application.
- Go to the Barclays Bank website and click on Open an Account
- Then, enter your personal details
- Link your bank account
- and finally, fund your Barclays account
How To Access Your Barclays Online Savings Account:
Online: Access your account by logging in with your username and password on: http://banking.barclaysus.com
Mobile Device: Bank on your phone or tablet through their mobile app.
Contact Barclays About Your Account:
Barclays is available 24/7 via mobile app, online and by automated services at 1-877-523-0478 to:
- Check current balance
- as well as view payment due date
- in addition, you can check available credit
- Pay your credit card
- as well as view most recent payment
- View minimum due date
- Transfer a balance
- as well as change your PIN
- as well as check credit card transactions
Furthermore, if you wish to speak to a live representative at Barclays, you can call: 888-710-8756, 7 days a week, 8:00 am to 8:00 pm ET.
In summary, high yield accounts with low fees are two essential factors for online savings accounts to keep up with their competition – and Barclays checks off both of those boxes with their current online offerings. Moreover, if you want to save money with a long-standing, trusted bank for the long term without accessing your account regularly, Barclays may be a great fit for you.
That said, if you need frequent ATM access or prefer in-person support this account may not be right for you.
Highlighted benefits of Barclays Online Savings includes the higher than average APY, no balance minimums or monthly fees, the ability to link multiple accounts and deposit checks via mobile or online. The disadvantages are that there is no ATM network and limited branch locations for US customers as well as the inability to couple this savings account with a Barclays checking account.
Banking Health Score
There are many banks and financial institutions to choose from and it is important to be able to distinguish the good from the bad. Our team reviews each bank on a monthly basis to ensure that the information we share is as up to date as possible. Not only is the financial strength of a company important, but also how well their customer service is rated by actual customers like you.
We also believe that in order to determine how well a bank is functioning, that several sources should be utilized to compare one bank to another.
That said, here is a list of scores from trusted sources that you should consider before making your banking decisions.
Barclays – Bank Health Scores
Bank Professor’s Bank Score = ⭐⭐⭐⭐⭐ 5 stars out of 5 stars
- Bankrate’s Safe and Sound Rating: 4.7 out of 5 stars
- BauerFinancial Star Rating: 5 out of 5 stars
- BankTracker Troubled Asset Ratio: 6.63
- FDIC: Actively insured
More about the rating system:
- BankProfessor rates banks monthly on a one-to-five scale based on revenue, net income, total assets, total equity, capital ratio, customer reviews, rating agency scores, profitability, and troubled asset ratio.
- Bankrate.com ranks banks and credit unions quarterly on a one- to five-star system, with one being the lowest rating and five the highest. The rating is given based on regulatory filings about the financial institution’s capital adequacy, asset quality, profitability and level of cash available. It compares those levels with peer and industry norms.
- BauerFinancial offers a similar star rating system as Bankrate (a one- to five-star system, with one being the lowest rating and five the highest).
- BankTracker was created by the Investigative Reporting Workshop of American University and MSNBC.com. They determine a bank’s troubled asset ratio. According to the site, the ratio is “a strong indicator of severe stress inside a bank because it shows the bank’s ability to withstand loan losses”. In other words, the higher the ratio, the more “trouble” they are in.