Review of Barclays Online Savings and CDs

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Updated on Wednesday, July 1, 2020

Barclays Online Savings account

Barclays’ Online Savings account offers a great annual percentage yield (APY) and low fees, but it doesn’t offer ATM access to your cash.

APY

Minimum Balance Amount to Open Account

1.00%

None

  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • Non-sufficient fund (overdraft) fee: $5 per item

If you’re looking for a great, high-interest online savings account, it’s tough to go wrong with this one. However, there are some things to consider before jumping in.

While this account is exceptionally light on fees, it’s not totally without them. The fees you’re most likely to face are the bank’s non-sufficient funds (NSF) fee if you overdraw your account, and an excessive transaction fee each time you make more than six transfers or withdrawals per month. Don’t blame that limitation on the bank, however. The Federal Reserve’s Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. A bank can also close your savings account or change it to a checking account if you make excessive transactions.

Finally — and this might be a biggie, depending on your situation — you cannot access funds in this savings account via ATM. In fact, the only way you can get the money out of your account is by electronic transfer or requesting a physical check to be mailed to you.

How to open a Barclays Online Savings account

Opening an online savings account with Barclays is easy. You can apply online by providing some basic personal information about yourself, such as your name, address, Social Security number or other taxpayer ID number. You’ll also need to be at least 18 years old and live in the U.S.

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on Barclays’s secure website

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How Barclays Online Savings account compares

Barclays offers a very high interest rate when compared with the best online savings accounts in our round-up. We really like that this account has very few fees, and they’re very reasonable. In comparison, other banks sometimes charge up to $35 in NSF fees, whereas Barclays only knocks you back $5 per item.

The only shortcoming that we can see is its lack of an ATM card. Because electronic transfers can take a couple of days to process, you won’t have immediate access to your cash. But if you don’t mind the wait, this shouldn’t be too much of a limitation for you.

Barclays Online CD rates

Barclays’ CDs offer simple, no-fuss terms and decent rates.

Term

APY

Minimum Deposit Amount to Earn APY

3 months

0.35%

None

6 months

0.65%

None

9 months

0.70%

None

12 months

0.85%

None

18 months

0.85%

None

24 months

0.85%

None

36 months

0.85%

None

48 months

0.85%

None

60 months

0.85%

None

  • Minimum amount to open an account: None.
  • Early withdrawal penalty: 90 days’ worth of interest for CDs of 24 months or less. 180 days’ worth of interest for CDs longer than 24 months.

Once you open up a CD with Barclays, you can expect to have interest tallied up and deposited into your account once per month. You can even set up automatic transfers so that your monthly interest payments are deposited into another account, whether it’s with Barclays or elsewhere. The above APYs are variable, and represent the APY that would be achieved assuming rates stay constant.

An interesting option to consider is building a CD ladder with Barclays. This method of staggering your CD maturities keeps you more liquid, and usually more able to take advantage of rising interest rates. Laddering, or adding CDs at intervals, can free up capital when each “rung” reaches maturity, allowing you to either reinvest or cash out without a penalty.

When a Barclays CD matures, it will automatically renew into another CD of the same term length. But don’t fret; you still have a 14-day grace period where you can withdraw or add money, and/or change the new CD’s term length. Barclays requires you to fund your account within 14 days of opening.

How to get a Barclays Online CD

To open up a Barclays CD, you’ll need to be at least 18 years old and live in the U.S. You can easily apply online. All you’ll need to provide is some basic personal information such as name, address, social security or other taxpayer ID number.

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How Barclays Online CDs compare

Barclays offers good rates on its CDs. Some competitors seen in our best CDs listing might offer slightly better rates, but Barclays remains a very decent choice. Many of the higher APYs offered by other banks require a minimum deposit, which Barclays does not. Barclays also offers low early withdrawal penalties, especially for its longer-term CDs.

The lack of minimum deposits for CDs is a significant benefit. Most banks require a substantial deposit, but you can put anything into a Barclays CD, as long as you carry a balance over $0.01. This makes it possible for people with less money to still earn super-high interest rates, and probably keep them reinvesting the returns.

Overall review of Barclays’ banking products

With Barclays, you’d be banking with a major bank with an international presence. From a bank this large, the quality of its savings accounts is impressive. Its CD accounts aren’t too far behind the best offers available on the market, and with substantially lower fees and no minimum investment.

Seemingly, the only disadvantage is that it doesn’t offer a corresponding checking account so you could keep all of your banking in one place. However, splitting up your savings from your everyday spending does have some advantages, such as making it more difficult to tap into your savings unless you really need it.

Everything considered, Barclays could be an excellent banking solution.

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