Although London-based, Barclays Bank has been around since 1690 and services just shy of 50 million customers worldwide, the online-only division was established in the US in 2003.
Barclays online deposit product suite is simple – with just an online savings account and a few standard term CDs.
In this review we will cover the variable-rate online savings account. It comes with a higher than average yield and no fees or minimum balance requirements.
You won’t be able to do all of your banking in one place with Barclays as they do not offer a checking account or ATM card, but if you’re comfortable managing your savings digitally in the interest of earning better interest, Barclays online savings account might be a good fit for you.
Barclays Online Savings Account Details + Rate
Barclays has only one savings account, the Barclays Online Savings. This account offers a respectable APY of 4.00% currently and has no minimum deposit requirements to open the account. Once the account is open there are no minimum balance requirements to maintain to avoid fees or account closure. To get paid interest, however, you will have to maintain a balance that would earn you at least $0.01 in interest.
Interest is compounded daily and credited monthly to your savings account or an external account.
Barclays is a member of the FDIC, so all accounts opened with them are insured up to $250,000 or $500,000 for joint accounts.
|Minimum Balance Requirement||APY|
To give this offer some context, the current national average for a savings account and a money market account sit at just 0.40% and 0.59%, respectively, according to FDIC data.
That said some of the top online savings account rates from FDIC-insured online banks and nationally available credit unions are now hovering around 4.50% APY.
How does Barclays Online Savings Account Compare?
Take a look at the table below. We compare Barclays online savings account with other competitive accounts on the market.
Pros and Cons
|✅ Pros||🛑 Cons|
|– no minimum deposit or balance requirements|
– no maintenance fees
– competitive yield that beats the national average handily
– daily compounding interest
– easy account to open and maintain
– fdic insurance
|– more competitive rates are available elsewhere|
– poorly rated Android app
– no ATM access
How to Open the Account
You’ll need a few basic things to get started with your account. Here is the information Barclays will require:
- Date of Birth
- Phone Number
- Social Security Number
Funding the Account
Barclays will also ask for the necessary bank information of where you will be transferring funds from. For this, you will need:
- your current bank account routing number
- your current bank account number
As with many online banks, you will need to verify two small test deposits that Barclays credits to your account before funding it. If you are making your initial deposit via check you can use $0.00 for these fields. Just be sure to mail your check in asap.
You can deposit funds via any of the following methods:
- you can set up direct deposits,
- make remote deposits through the app or website,
- transfer funds electronically through an ACH transaction,
- or mail a check to the following address: Barclays P.O. Box 4538 Carol Stream, IL 60197
Once your online savings account is open, you can easily transfer funds to other accounts and other banks for free (though you will have to wait 2 – 3 business days for these to go through). You can do this up to six times per month without incurring fees per Federal Regulation D. For each transaction after that, you’ll be charged $5.
The other fee to potentially look out for is the $5 non-sufficient funds fee, which is still significantly lower than what most banks charge. For more information on fees, continue reading below.
As mentioned, the account comes with no monthly maintenance fees and no monthly balance requirements. That said, depending on what actions you intend to take with this account, there may be some associated fees.
Barclays Online Savings Fees
|Excessive Transaction||$5 each after the sixth|
|Returned Item||$5 each|
|Non-Sufficient Funds (NSF) Fee||$5 per item|
|Statement Copy||$0.50 per statement|
|Express Mail/Rush Delivery Charge||$25|
Please note that Barclays does not accept wire transfers at this time.
Barclays has ATMs, but you won’t be able to access them if you’re an online-only customer because the Barclays Online Savings account does not come with an ATM card.
There is also no U.S. branch network. To access your funds, you’ll have to transfer them to another account or cash out checks. And remember, Barclays does not offer a checking account at this time.
So what do US consumers have to say about this online institution?
Reviews are very mixed.
Until recently, customers have generally been satisfied with their experience with this bank. Out of 220 reviews on DepositAccounts, the bank earned a 4-star customer rating. Out of 472 customer ratings on ConsumerAffairs, the institution earned about 3.2 stars. Finally, on WalletHub, Barclays scored a 3.8 out of 24.2 thousand user reviews—overall, the bank is rated somewhere between 3 and 4 stars out of 5. (Keep in mind, however, that some reviews are of the global company and not of the online, U.S.-based retail bank alone.)
In normal environments consumers seem to be satisfied with this bank, especially for its interest rates and the ease of use of its digital platform. However, back in 2020 amidst the panic of COVID-19 and the worrisome financial situations of so many Americans, Barclays received an outpouring of overwhelmingly negative reviews.
Customers were seeking help in the form of mortgage relief, advice, answers, and more but Barclays has allegedly become flaky and unresponsive. Many users had reported unexpected account closures and freezes and a number of customers were unable to reach customer service representatives at all. Though this might not be the typical Barclays experience, it’s still worth noting.
As for Barclays mobile apps (US version for online savings account), they score a 3.4 out of 5 on Apple’s App Store and just a 1.9 out of 5 on Google Play. It’s worth noting that the US versions for the online savings account score much lower on usability than their UK counterparts which both score above 4.5 out of 5.