Currently, London-based Barclays offers U.S. customers only online savings accounts and certificates of deposit (CDs). Both account types offer interest rates that are among the highest available. Also, the savings account has no minimum requirement and no maintenance fees. Saving with Barclays seems to be a win-win, whether you choose a traditional savings account or a CD.
That said, as huge as Barclays is -and it is the 20th largest bank in the world, asset-wise- it has no branches stateside. As a result, you'll need to have an account with another bank in order to open a Barclays account (and transfer money into it.) Barclays also doesn't offer checking accounts. So if you like to do all of your banking in one place, Barclays isn't right for you.
Read on below to explore Barclays' many offerings
|Savings Accounts|| |
|Certificates of Deposit|| |
Barclays Interest Rate Comparison
A global banking brand today, Barclays can trace its roots back to London goldsmith bankers in 1690. Over more than 300 years, Barclays has grown and implemented some groundbreaking services like the world’s first ATM. Today, Barclays offers credit cards, investments, loans and much more to customers all over the world.
Barclays online banking business and the Barclays credit card and payment arm are located in Wilmington, Delaware. The Barclays wealth unit is in New York City, while its capital corporate finance business operates in more than a dozen U.S. cities. U.S. customers are currently limited to online banking features. Barclays maintains five core values for its business: respect, integrity, service, excellence and stewardship. The company says that it strives to prioritize its customers and their experience.
Barclays Bank Account Features
You can use Barclays online banking services to help you reach your savings goals. You can start by using Barclays savings tools, to see which of its services might work best for you. You can also plug in your own personal savings goals to gauge how long it might take you to reach those goals.
Barclays offers a few different kinds of savings vehicles. Its standard savings account, the Barclays Online Savings Account, earns interest at a competitive APY of 4.00%. You can also choose between various certificates of deposit. Each savings account from Barclays is FDIC insured up to $250,000. Each account is also easily accessible through the Barclays website.
Compare Barclays to Other Competitive Offers
Barclays Online Savings Accounts
|Access to Your Savings Account||Online and mobile banking or over the phone.|
|Security||FDIC insured, secured website.|
|Fees||No fees; $5 penalty per outgoing transfer in excess of six per month.|
|Current Terms and Rates||4.00% APY|
Saving for the future can be tricky. Sometimes it’s hard to get started when we have other costs and expenses to keep up with. But that’s where a savings account comes in. Savings accounts provide a safe and guaranteed way to put away money. Not only that but if you find a savings account with a solid rate of return, your money will grow in the account as well.
Most banking institutions offer some sort of savings account. However, not all accounts offer a high rate, or annual percentage yield (APY). Barclays is one of the institutions that offer a rate that is well above the national average. You begin earning interest immediately on whatever balance you start with. There is no minimum deposit or balance requirement with the Online Savings Account. But of course, you can’t earn interest on $0, so you’ll need to have some money in there.
Since Barclays has no storefront branches in the U.S., you'll have to have an account with another bank to open and transfer money into an online savings account with Barclays. Once you open an account, you can make deposits either online or on your mobile phone. You can also set up direct deposits or mail in your deposits. That said, Barclays does not accept cash deposits or certain checks through the mail. You also have access to Barclays’ Savings Assistant which can help you figure out how to accomplish your savings goals.
Barclays Online Certificates of Deposit (CDs)
|Access to Your CD||In writing or over the phone.|
|Fees||No monthly maintenance fees; penalties of a certain amount of interest for early withdrawal or account termination.|
|Current Terms and Rates|| |
In addition to its savings accounts, Barclays offers a range of term length certificates of deposit (CDs). If you’re not familiar with CDs, they’re another kind of savings vehicle. However, they’re pretty different from your basic savings account. When you open a CD, you place your deposit into the account, agreeing not to touch the money until it the CD matures. The amount of time it takes depends on the term length you choose. You usually have a range of term length options from twelve months to five years. This kind of account ensures that you can’t dip into your savings on a whim. If you do, you face some hefty penalties.
Barclays CDs range from twelve to 60-month terms. Each CD term length carries its own APY, increasing with the term length. Interest compounds daily. If you’re unsure which term would suit you best, Barclays provides a CD calculator so you can see how much your original deposit would grow over different time lengths.
You also have the option to build a CD ladder. A CD ladder is a strategy where you open multiple CDs at the same time with various term lengths. As each CD matures, you renew it for the longest term in your ladder. That way, you can have some liquidity, and eventually, all of your money will be earning the highest interest rate. Some people even roll their earnings into another account to keep the growth going instead of cashing out. Barclays can help you plan out your CD ladder.
When your CD matures, you have a 14-day grace period to withdraw your funds or make changes to your CD. To withdraw the funds, you need to contact Barclays in writing or by phone within those 14 days. Barclays will be sure to send you a reminder of your CD maturity 30 days before the maturity date. If you don’t take any action, the CD will be automatically renewed at the same term length.
While you cannot touch your CD before its maturity date without incurring penalties, you may receive interest disbursements from the account before it matures. This means you have the option of transferring the account’s earned interest into another savings or checking account, whether with Barclays or not. This is a good option for people who need money fast and not locked in a savings account. You could also choose to keep your earned interest in the account.
Where Can I Find Barclays?
U.S. customers can find Barclays online. Through its online banking arm (homepage shown here), you can find savings accounts, certificates of deposit and financial tools. You can also look into its other offerings like Barclaycard credit cards and other financial services like investment and corporate banking. Not all Barclays services are available to U.S. customers.
However, you can easily reach Barclays over the phone at (888) 710-8756. The phone lines are staffed seven days a week from 8 a.m. to 8 p.m. EST.
What Can You Do Online With Barclays?
Everything that is available to you through Barclays is available online. You can open up accounts online, fiddle with financial calculators and learn more about the company and its offerings.
Once you have an account, you can access it online. You can easily log in on the homepage. Barclays guarantees secure online activity and transactions.
How Do I Access My Money?
Once you’ve opened a savings account or CD with Barclays, it’s easy to manage and access your accounts. Just go online to log into your account. There you can make changes and transfers or just check up on your savings. Don’t forget that you can only make six outgoing transfers from a savings account per month. If you go over the limit, you will incur a $5 penalty per transaction. Transfer in is unlimited, of course.
In the case of a CD that has reached maturity, you will be able to withdraw your funds by calling Customer Care or mailing in your request.
How Can I Save More Money With a Barclays Account?
Right off the bat, Barclays savings accounts and CDs boast some of the highest annual percentage yields available. This means that no matter the amount you put into a Barclays savings account, that deposit can earn more than it would with many of Barclays’ competitors.
Big returns wouldn’t mean a thing if you also faced large fees for a bank’s services. Luckily, Barclays offers its savings vehicles at no extra cost to you for account maintenance.
What’s the Process for Opening an Account With Barclays?
Opening an account with Barclays is an easy and pretty standard process. You can do so online or over the phone. The first step of the online application process is shown here. You will have to provide personal information, including your Social Security number, financial situation and contact information like a phone number and email address.
Additionally, you will have to link another bank account with your Barclays account.
What’s the Catch?
The catch with Barclays is that it isn't a full-service in the U.S. There aren’t any physical branches here that you can visit to speak to a person about opening an account or about issues with your account. Most of that takes place online or over the phone with Customer Care.
Additionally, not all of Barclays’ offerings are available in the U.S. Barclays has separate websites for its U.K. and U.S. So if you are someone who wants to put all your accounts in one place, or who highly values in-person branches, Barclays may not be the right fit for you.
Barclays' best features - high APYs with no fees or minimums – will likely be extremely attractive to customers looking to open savings accounts or CDs. The savings account APY lands much higher than most other competitors. The 60-month certificate of deposit earns at an even higher rate. Pair those rates with the lack of fees and minimums and almost anyone can see their money grow substantially with Barclays.