Barclays has a good rate on their savings account with no minimum required – available online-only in the U.S.
- Update 4/27/2023: The APY rate has increased from 3.80% to 4.00%.
- Update 3/28/2023: The APY rate has increased again to 3.80%.
- Update 2/8/2023: The APY rate has increased from 3.40% to 3.60%.
- Update 12/16/2022: The APY rate has increased from 3.00% to 3.40%.
Barclays is a good bank for saving money because it has low fees and good rates. Their online savings and CD (Certificate of Deposits) accounts offer competitive rates, and there are no monthly fees or minimum balance requirements.
Below, we talk about the Barclays Online Savings account and give you all the information you need, including how you can access your money, perks, and fees.
Read more: Get details on Barclays CD accounts here.
Barclays Pros & Cons
Pros:
- No minimum balance for savings
- Competitive rates for savings/CDs
- No monthly fees for savings
Cons:
- No checking account option
- No ATMs or branches for U.S. customers
Barclays Online Savings Account Earns 4.00% APY (Annual Percentage Rate)
The Barclays Online Savings account is a high-yield savings account that earns a competitive rate.
When you open a savings account with Barclays, you don’t have to make a minimum deposit and there are no monthly fees. There is also online access 24 hours a day, 7 days a week.
Federal law says that customers can only make up to six free transfers or withdrawals per statement cycle. For any transactions over this amount, Barclays charges a $5 fee.
About Barclays
In 1690, John Freame and Thomas Gould began doing business as goldsmith bankers on London’s Lombard Street. James Barclay, John’s son-in-law, joined the business in 1736 and gave it the name we still use today. Since then, Barclays has been at the forefront of new ideas.
Barclays helped pay for the world’s first industrial steam railway, hired the UK’s first female branch manager, and made the world’s first ATM. And those are just a few of the important events in their first 300 years.
Today, Barclays is a major global financial services company that offers retail banking, credit cards, corporate and investment banking, and wealth management. Barclays moves, lends, invests, and protects 48 million customers’ and clients’ money around the world.
In the US, Barclays Online Banking gives customers an easy-to-use and safe way to do their banking.
Access To Your Money
With the Barclays mobile app, people who have a Barclays Online Savings account can move money to and from linked external bank accounts and set up direct deposit to make saving easy.
With Barclays’ Deposit Checks feature, you can upload a picture of your check from your computer, laptop, or mobile device and deposit it into your savings account.
Barclays doesn’t offer a checking account you can connect to, and there is no ATM card available.
Deposit Options
Your Barclays Online Savings account can get money in through four ways:
- Mobile deposit
- Direct deposit
- Electronic funds transfer
- Mailed check
Barclays doesn’t take money orders, cash deposits, or wire transfers.
Cash Withdrawal Options
When you want to get money out of your Barclays Online Savings account, you have two options:
- Electronic funds transfer
- A check mailed from Barclays
Online transfers from your Barclays account to your external bank account can take up to three business days.
Account Perks
Barclays Savings Assistant
With a Barclays Online Savings account, you get access to the Barclays savings assistant. It has an easy-to-use calculator that can help people see what it will take to reach their savings goals.
The website has a dropdown menu where users can choose their goal, such as saving for college, a vacation, or retirement. The Barclays savings assistant will then figure out how many months or years it will take you to reach your goal.
No minimum Deposit Or Minimum Balance Requirements
Barclays is a great choice for people who are just starting to save money because there is no minimum balance needed to open or keep an account. Even people who save a lot will like that you won’t be penalized if you have to take money out of your savings account and leave it with a low balance.
No Monthly Maintenance Fee
High-yield online savings accounts usually have low or no fees. This is one of the most important things to look for in a savings account, since fees can quickly cancel out the interest you earn.
Mobile App
A must-have for an online savings account is a mobile app with high ratings. Your Barclays Online Savings account lets you deposit checks from your phone and make free electronic transfers. Users have also given both the iOS and Android apps high marks.
FDIC Insured
Savings accounts at Barclays are covered by the FDIC in the same way that savings accounts at traditional banks are. In the event that a bank fails, you can get up to $250,000 per depositor and per institution.
What Could Be Improved?
Barclays is focused on online savings and CDs, so you can’t open other types of accounts. For instance, you can’t open a checking account with Barclays at the moment. If you’d rather do all of your banking in one place, you’ll have to look elsewhere.
Withdrawals must be in the form of a check or a transfer to an external bank account. This makes it slow and take several days to get your money from your Barclays Online Savings account.
Who’s Barclays Best For?
Barclays is best for those who don’t need a checking account or in-person services but want high rates on savings with no minimums.
The Barclays Online Savings account is a good option if you care more about getting a high yield and low fees than getting help in person at a branch or using an ATM. The most money can be made with this account if the balance is high, but since there is no minimum balance requirement, anyone can take advantage of the high APY.
The Banking Experience
You mostly get the basics at Barclays. You can get help from customer service through Twitter every day from 8 a.m. to 8 p.m. Eastern time. The Barclays app lets you electronically deposit checks. As mentioned earlier, their iOS and Android apps are highly rated.
Frequently Asked Questions (FAQs)
As an online bank, Barclays puts safety and security at the top of its list. All of the bank’s information is encrypted with 128-bit secure sockets layer (SSL) technology. Barclays also uses monitoring tools to find out if someone is accessing without permission and firewalls to keep customer accounts and information safe.
No, this account does not provide a debit card.
No, Barclays does not offer a checking account at this time.
No, Barclays doesn’t currently offer money market accounts.
Read more: Compare savings rates here and CD rates here…
Bottom Line
There are some key advantages and disadvantages to their online savings account.
On the positive side, Barclays offers competitive rates, no minimum balance, no monthly fees, and easy access through their mobile app. The Barclays Savings Assistant and FDIC insurance add more value to their services, making it an attractive choice for people looking to grow their savings.
However, the absence of a checking account option and limited access to funds (no ATM or branch access for U.S. customers) can be a downside for some. This means it might take longer to access your money and you won’t be able to handle all your banking needs in one place.
In conclusion, Barclays is a great fit for those who prioritize high yields and low fees without the need for in-person services or a checking account.
If you’re looking for a simple online savings account that helps you grow your savings with competitive interest rates, Barclays is worth considering. But, if you prefer an all-in-one banking solution or require quicker access to your funds, you may want to explore other options.
READ MORE: SEE THE BEST BANK BONUSES HERE AND THE BEST INVESTING BONUSES HERE.
