[Update December 2021: Barclays mid and long term CD rates have risen quite substantially over the course of 2021. Their 5 year term deposits, in particular, rose over 3x – starting the year at 0.25% APY and ending at 0.80% APY. Their short term CDs, 3 – 9 months, provided a yield of just 0.10% APY all year and did not fluctuate.]
The online-only, US division of Barclays Bank has a simple set of bank deposit accounts that feature some noteworthy yields.
Their current product suite consists of an online savings account and 9 regular term CDs ranging from 3 months to 5 years. The current yields on their certificates of deposit are higher than the national average for each term.
Barclays CDs can be opened online in minutes and their products are available to US citizens and residents over the age of 18 in all 50 states.
Barclays Bank CD Rates + Account Details
Barclays Bank is federally insured by the FDIC. All deposits are insured up to $250,000 per depositor or $500,000 for joint accounts.
Barclays Bank CD Rates
To put these offers in perspective the current national average on a 12 month CD and a 60 month CD sit at just 0.13% and 0.28% APY, respectively, according to recent FDIC data.
Given the fact that Barclays Bank has static yields on terms ranging from 12 to 60 months, their 12 month CD is going to be more competitive when compared to the national average than the 5 year CD – although both beat it handily.
How is Interest Calculated and Paid
All Barclays CDs compound interest daily and credit it monthly to your account. You can choose to have these funds kept in your deposit to compound further, transferred to a Barclays online savings account or transferred to an external account.
Fo those that would like the interest transferred, here’s how to set that up:
- Select the Account detail tab,
- Go to the Additional Details section.
- Under CD interest disbursement, select the Edit option.
Please note that you’ll need the wiring information and bank account number to where the funds will be disbursed.
Early Withdrawal Penalties
Watch out for early withdrawal penalties. Barclays bank doesn’t offer any promotional, one-time early withdrawal option that some other online banks do.
If you need access to your funds prior to your CD’s maturity you can expect to pay the following:
- For a CDs with terms less than 24 months, a penalty equaling 90 days simple interest on the dollar amount withdrawn subject to penalty will be imposed,
- For CDs with a term of more than 24 months, a penalty equaling 180 days simple interest on the dollar amount withdrawn subject to penalty will be imposed.
What Happens When Your Barclays CD Matures
Barclays gives you ample time to decide what to do with your funds when your CD matures. They will send you an email alert notifying you of your upcoming CD maturity roughly 30 days prior to the maturation date. At this time you may login to your account and make your maturity selection. You can choose to do nothing and have the CD renewed, withdraw some or all of the funds, or change the term of your CD.
Upon maturity you will be allotted a 14 day grace period in which you can withdraw funds (or add them) without any penalty. To withdraw funds, you’ll need to contact them in writing or by phone before the grace period is over. For more detailed instructions, call the Barclays Customer Care team at 888-710-8756, 7 days a week from 8:00 am to 8:00 pm ET.
If nothing is done during this 14 day grace period, your CD will automatically renew into the same term deposit with whatever yield is currently being offered at that time.
⏰ Remember: Be sure to set up your own alerts as these emails can be accidentally sent to your junk mail.
Barclays Bank specializes in great online savings rates, both for variable and fixed rate deposit accounts. Their deposit product selection all currently feature above average yields.
That said, while Barclays CD rates certainly beat the national average(s) for their respective terms, higher yields can be found on many shorter term CDs through other online banks and nationally available credit unions.