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Published: Oct 17, 2023 11 min read

Barclays Bank is one of the largest and most well-known financial institutions in the world. Headquartered in London, U.K., its online banking business operates out of Wilmington, Delaware.

Barclays offers many financial products, including credit cards, investment banking services, certificates of deposit (CDs) and an online savings account.

We conducted an in-depth analysis of the Barclays Online Savings account, covering everything from account opening criteria to its pros and cons and customer satisfaction ratings. Keep reading to determine if this account aligns with your savings needs.

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Best high-yield savings account with no transfer or withdrawal limits

When it comes to the best high-yield savings accounts, one of the key factors to consider is flexibility in managing your funds.

While some financial institutions limit the number of withdrawals you can make per statement cycle and charge fees for exceeding this limit, Barclays does not. The Online Savings account has no limitations on withdrawals via ACH debits or transfers to external bank accounts.

However, withdrawals can only be made by online transfer or scheduled by phone. Barclays does not offer a debit card with its Online Savings account. This is commonplace with most financial institutions, although some savings accounts have debit cards or check-writing privileges.

Barclays Online Savings high-yield savings account pros and cons

Pros
  • No transfer or withdrawal frequency limits
  • No monthly maintenance fees
  • No minimum balance requirements
Cons
  • Doesn't offer checking accounts
  • No debit card
  • No physical branches in the U.S.

Pros explained

No transfer or withdrawal frequency limits

The Barclays Online Savings account offers customers unlimited transfers to external banks and withdrawals via ACH debits. This feature lets you move your money around without worrying about costly fees or penalties.

No monthly maintenance fees

Generally, a no-fee account is ideal for getting the greatest return on your savings, but some accounts still charge a monthly fee. However, Barclays doesn’t charge customers any fees to maintain their Online Savings account.

No minimum balance requirements

There is no minimum balance requirement to open a Barclays savings account. You don’t have to maintain a set balance, either — unlike with other savings accounts that may require a minimum of $500 to keep your account active. However, if your balance falls below $1 for over 180 days, your account might be closed.

Cons explained

Doesn't offer checking accounts

While many online banks offer both savings and checking accounts, Barclays does not. This may be a drawback if you’re looking for an all-in-one banking solution.

No debit card

Unfortunately, Barclays doesn’t offer a debit card, so you can’t make ATM withdrawals or use your account for purchases in person or online. Instead, you'll need to transfer money to another bank account with a debit card or ATM access. You can also call Barclays and request that a check be mailed to you.

No physical branches in the U.S.

Barclays doesn't have any physical branches in the U.S., so you must make all deposits and transfers using the Barclays mobile app or online. This could be a deal-breaker for customers who prefer to make in-person transactions.

Barclays high-yield savings account offerings

Barclays offers two types of savings accounts: the Barclays Online Savings Account and the Barclays Online CD. Both of these accounts are FDIC-insured, meaning each account is protected up to $250,000.

The two accounts differ in terms of access to funds. Additionally, the Online CD account offers slightly higher interest rates, especially if you choose a longer term length for your certificate of deposit. The following section examines each option in more detail.

Barclays Online Savings account

The Barclays Online Savings account is ideal if you’re looking for a flexible, low-maintenance savings option. This account features no monthly maintenance fees and no minimum balance requirements, as well as unlimited monthly transfers and withdrawals.

While there is no debit card or ATM access, customers can initiate electronic transfers to external bank accounts, set up ACH debits or request checks by phone. However, if you overdraw your account, Barclays charges a non-sufficient funds (NSF) fee of $5 per item or up to $50 per day.

Interest rates are subject to change at any time. Nonetheless, Barclays typically provides annual percentage rates (APRs) for their high-yield savings products that are on par with or slightly higher than those offered by competitors. Interest on your Barclays Online Savings account is compounded daily, and accrued interest is posted monthly.

If you’re still unsure about how high-yield savings accounts work, refer to our guide: What is a High-Yield Savings Account?

Barclays Online CD

Certificates of deposit (CD) are a type of savings product in which your funds earn interest based on a fixed rate during an agreed-upon period of time. Terms for CDs can range from one month to five years, during which you cannot withdraw funds without penalty.

Barclays offers CDs in terms of 6, 12, 18, 24, 36, 48 and 60 months. There are no minimum balance requirements for Barclays' CDs and no monthly service charges. The fixed interest rates offered depend on the term length and current market conditions but are currently slightly higher than those offered through its Online Savings account.

When the term of your Barclays CD ends, you have a few options: withdraw the funds to your Barclays Online Savings Account or an external bank account, renew your CD with the same term or renew your CD with a different term. When you renew your CD, the interest rate is subject to change based on current market conditions.

During your term, you can opt to have your earned interest disbursed to you monthly instead of being reinvested into the account. However, Barclays imposes a penalty if you withdraw any principal from your CD account before the term ends, also referred to as maturity.

CD accounts with terms of 24 months or less are charged a withdrawal penalty equal to 90 days simple interest on the dollar amount withdrawn, while CD accounts with terms of more than 24 months are charged a penalty equal to 180 days simple interest on the dollar amount withdrawn.

Barclays high-yield savings account pricing

Compared to its competitors, Barclays does not offer the highest available interest rates for its Online Savings account or its Online CD. Still, Barclays' savings rates are in the top tier available on the market. Combined with its lack of fees and minimum balance requirements, this makes Barclays a strong choice in terms of pricing.

Barclays high-yield savings account financial stability

Barclays has received strong ratings from many of the leading credit rating agencies. This includes an A+ stable rating from Standard and Poor's, an A1 stable rating from Moody's and an A+ stable rating from Fitch. All of these ratings indicate solid financial stability.

Barclays high-yield savings account accessibility

Availability

Barclays provides access to its online banking services in all 50 states, as well as the District of Columbia. Customers may open and maintain a combination of up to 25 simultaneous accounts.

It's important to note that the bank has no physical locations in the United States, meaning services (e.g., setting up direct deposits, transfers, etc.) are handled entirely online or through the Barclays mobile app.

Contact information

In addition to customer service via messaging online or the mobile app, you can contact Barclays by phone at 1-888-710-8756. Representatives are available seven days a week from 8:00 a.m. to 8:00 p.m. ET.

The company's mailing address is:

Barclays
PO Box 70378
Philadelphia, PA 19176

User experience

The Barclays website is easy to navigate and provides plenty of helpful information about the different products and services offered. It features a frequently asked questions (FAQ) page for customers who need quick answers to their queries, savings calculators, a resources blog section and easy access to the Barclays savings login portal.

Also, a positively-reviewed mobile app provides customers with a secure way to access their accounts and manage their finances on the go.

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Barclays high-yield savings account customer satisfaction

Barclays is accredited by the Better Business Bureau (BBB) and holds an A+ rating. The financial institution currently has a 1.05 out of 5-star customer rating on its BBB page. One customer posted about a significant delay in receiving funds after closing their CD and savings accounts. Otherwise, complaints primarily reference credit cards, with customers noting issues not receiving rewards on time and trouble resolving fraudulent charges.

However, the company has successfully closed out nearly 1,000 BBB customer complaints over the past 12 months.

Barclays high-yield savings account FAQs

Is Barclays a good bank?

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Barclays is a multinational bank widely considered to be a secure and reliable financial institution. While no checking account services are provided to U.S. customers, Barclays' online savings accounts and certificates of deposit (CD) offer competitive annual percentage rates (APRs).

Is Barclays Online Savings FDIC insured?

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Yes, Barclays Online Savings and CD accounts are FDIC insured up to $250,000 per depositor. This means that if Barclays were to fail, your money would be protected up to the FDIC insurance limit.

How much does Barclays charge to open a savings account?

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Barclays doesn't charge a fee to open a savings account and doesn't charge any ongoing monthly maintenance fees.

How often does Barclays savings account accrue interest?

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Accrued interest is added to your Barclays Online Savings account on a monthly basis.

How we evaluated Barclays high-yield savings account

We evaluated Barclays based on a variety of factors, ranging from the types of savings accounts offered to their associated fees and interest rates. Through research, we determined the following criteria to be most important.

  • Interest rates: We examined the current APYs for its savings and CD accounts and compared them to competitors.
  • Fees: We reviewed Barclays fee schedules and terms and conditions.
  • Customer satisfaction: We evaluated online customer reviews to better understand what customers think about their experience with Barclays' services.
  • User experience: We assessed the user-friendliness of the Barclays website and online banking experience.
  • Withdrawal and transfer limits: We reviewed Barclays' withdrawal and transfer limits to make sure customers can access their money when they need it.
  • Accessibility: We took into account whether Barclays' services are available to customers in all U.S. states.
  • Financial stability: We looked at the financial stability ratings of Barclays and its parent company.

Summary of Money's Barclays high-yield savings account review

Among leading online banks, Barclays Online Savings accounts and CDs stand out because they are both no-fee accounts that offer competitive interest rates and no minimum balance requirements.

Barclays doesn’t offer ATM access or a debit card with its Online Savings account, unlike some financial institutions. Still, Barclays' unlimited withdrawals and transfers allow for easy access to funds. Although we always suggest shopping around for the best rates and terms, Barclays Online Savings could be a solid option for customers seeking an online savings solution.

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