Barclays US Savings Review 2024

Barclays is one of the United Kingdom’s largest and oldest banks, dating back to the late 1600s. Barclays’ credit cards have existed for over 50 years and continue to gain popularity. While its name is not as recognizable in the U.S. as in other parts of the world, Barclays has established itself as one of today’s top choices for online banking.

Barclays US delivers attractive features like no fees and no minimum balance requirement, along with some of the better savings account yields and CD rates currently available. So what else helps it stand out, and where does it fall short? Let’s take a closer look.

Account details and annual percentage yields (APYs) are accurate as of April 11, 2024.

The Barclays Online Savings account earns 4.35% APY. This is on par with some of the most competitive savings rates we’ve seen and much higher than the national average according to the FDIC. Keep in mind that savings accounts have variable rates, and banks frequently raise and lower savings rates based on the market and other factors.

Barclays Certificates of Deposit also feature high savings rates, ranging from 3.50% to 5.00% APY, depending on the term. CDs offer guaranteed returns with fixed rates for the duration of the CD term.

Savings

Barclays’ online savings account is a high-yield savings account, earning a competitive 4.35%.

There’s no minimum deposit requirement to open a Barclays savings account, and Barclays doesn’t charge monthly maintenance fees. Other features include 24/7 online access and support for direct deposit and external bank transfers.

Read More: Best Savings Accounts of 2024

CDs

Barclays certificates of deposit have terms ranging from one to five years and rates ranging from 3.50% to 5.00% APY.

Here are Barclays’ current CD terms and rates.

CDs are renewable, and Barclays will notify you 30 days before they reach maturity. When a CD’s term ends, you can choose to either renew it or withdraw your funds. Customers can also receive monthly interest disbursements, which can be transferred to your Barclays savings account or another bank account.

There is a penalty for withdrawing funds from a Barclays CD before maturity: a fee equal to 90 days of simple interest on the amount withdrawn for one- and two-year CDs. For early withdrawal from longer-term CDs, the penalty fee is equal to 180 days of simple interest.

Barclays CDs could be perfect for building a CD ladder, which maximizes earnings while giving you freedom to reinvest or withdraw earnings along the way.

Read More: Best CD Rates of 2023

Barclays customers can access their accounts through the Barclays US Savings mobile app. Available on iOS and Android, the app supports mobile check deposits. Customers can make deposits by taking photos of the front and back of their checks and uploading them via the app. You can also access your account balances and make one-time transfers using the Barclays app.

The Barclays US Savings app doesn’t have great ratings. Customers have reported concerns about the app’s limited features and functionality. So if you want your mobile banking app to be more comprehensive, Barclays may not be the right choice.

Barclays US has no physical branch locations in the United States, which means most customers are out of luck if they want help locally. Barclays US Savings also doesn’t provide ATM cards, which means customers can only withdraw funds by electronic transfer to external bank accounts. Barclays Online Savings and CD accounts are designed to promote savings and not be used as everyday banking accounts.

If you’re looking for an online bank that offers excellent APYs, Barclays US Savings deserves a chance. Its savings account APYs are competitive with other online banks, making Barclays a good place to keep an emergency fund or save money for specific goals.

Barclays CD APYs are also competitive compared with the best CD rates. If you’re ready to commit your cash to a CD with a term of at least one-year, you’ll find that Barclays has among the highest rates currently available.

Since it’s an online-only bank in the U.S., Barclays has no physical branches or ATMs. As a result, customers are limited in how they can withdraw funds.

Barclays’ customer support is accessible by phone 8 a.m. to 8 p.m ET, seven days a week. This may not be an issue if you’re comfortable with banking online, but if you want the convenience of local bank branch support, Barclays is likely not the best fit.

Barclays also likely won’t be the best choice if you’re looking for a full-service bank that offers a multitude of banking options, like checking and money market accounts. You won’t find these types of accounts from Barclays at this time. Customers also need to have an existing bank account at another bank to be able to fund their Barclays accounts. While the rates might be worth the effort, these extra steps could make Barclays less attractive.

But people who want an online bank that pays competitive APYs on savings and CDs should consider Barclays US Savings.

Barclays tends to be competitive with some of the best rates available for savings accounts and CDs.

Compared to the APYs available from the best online savings accounts, Barclays is near the top of the list with a healthy 4.35% APY.

When comparing the best CD rates available, Barclays remains competitive for all terms ranging from one to five years.

When considering any bank or credit union, it’s important to consider the features and products you need versus those offered by a bank. For example, you might like Barclays’ savings account APY yet also need a checking account. If you want to consolidate your banking to one institution, you’d likely choose a different bank because Barclays doesn’t offer a checking account in the U.S.

Barclays vs. Marcus

When comparing Barclays and Marcus by Goldman Sachs, the two banks offer nearly identical rates on savings accounts and comparable rates on some CD terms. Here’s how the Barclays accounts and the Marcus by Goldman Sachs High-Yield Online Savings Account and Marcus by Goldman Sachs High-Yield Certificates of Deposit compare on selected savings products:

Unlike Barclays US, Marcus has a minimum balance requirement for CDs: You must deposit at least $500. Both banks have no minimum to open a savings account, and neither of them offers a savings account or money market account right now.

Barclays vs. Ally

When comparing Barclays against Ally Bank, you’ll find that the Ally Bank Savings Account offer comparable rates. However, Barclays slightly outshines the Ally Bank Certificates of Deposit when it comes to most CD terms.

Similar to Barclays, Ally Bank has no minimum balance requirement for its savings account or CDs. But if you’re looking for a more comprehensive banking relationship, Ally is the clear choice. Not only does it offer a checking account—which pays interest—but it also has one of the best money market accounts you can find.

Barclays vs. Discover® Bank

When comparing Barclays and Discover® Bank, you see that Barclays edges out the Discover® Bank Online Savings Account on savings account rates and on many, but not all, of the Discover® Certificates of Deposit terms.

Discover® CDs require much greater upfront investment than Barclays, with a $2,500 minimum deposit requirement. Neither bank requires a minimum deposit to open a savings account. Discover also offers its Discover® Cashback Debit Checking account the Discover® Money Market Account.