Barclays Bank review 2023

Barclays is a financial institution based in London that offers a limited range of savings products in the U.S. Savers can choose from one high-yield savings account and a selection of certificates of deposit (CDs), all with very competitive rates. In fact, Barclays is one of the best banks out there because of its combination of high rates with no minimum deposit requirements. 

This online-only bank can be a great option for people who are looking to grow an emergency fund or save toward a medium-term goal, like a down payment on a house. However, you’ll want to look elsewhere if you want to keep all of your accounts at one institution, since Barclays doesn’t offer a checking account. Here’s what to know if you’re considering a switch.

• Competitive rates: Barclays’ savings account and CDs currently offer some of the highest interest rates available. 
• No monthly fees: Accountholders won’t need to pay a maintenance fee to keep their account open.
• No minimum opening deposit: Neither Barclay Bank’s savings account nor its CDs have a required balance. 
• Mobile app available: An app is available for both Android and iOS

• No checking account: Barclays Bank offers only a savings account and CDs. 
• No ATM access: Accountholders can’t withdraw money at an ATM. They’ll need to conduct transfers to an external bank when they need cash in hand. 
• Not suited for in-person banking: Those who don’t want to bank online will need to look at another financial institution.  
• Limited CD term offerings: There are only six CD terms to choose from, which is low compared to competitors.

Both Barclays’ savings account and CDs offer competitive rates but serve different purposes in your financial life. As a FDIC-insured bank, your deposits are covered up to $250,000 in the event Barclays Bank fails. 

• Competitive rates: Barclays’ savings account and CDs currently offer some of the highest interest rates available. 
• No monthly fees: Accountholders won’t need to pay a maintenance fee to keep their account open.
• No minimum opening deposit: Neither Barclay Bank’s savings account nor its CDs have a required balance. 
• Mobile app available: An app is available for both Android and iOS

• No checking account: Barclays Bank offers only a savings account and CDs. 
• No ATM access: Accountholders can’t withdraw money at an ATM. They’ll need to conduct transfers to an external bank when they need cash in hand. 
• Not suited for in-person banking: Those who don’t want to bank online will need to look at another financial institution.  
• Limited CD term offerings: There are only six CD terms to choose from, which is low compared to competitors.

Both Barclays’ savings account and CDs offer competitive rates but serve different purposes in your financial life. As a FDIC-insured bank, your deposits are covered up to $250,000 in the event Barclays Bank fails. 

Barclays Bank’s online savings account currently offers 4.35% APY, one of the highest rates we’ve seen. You don’t need to meet any minimum balance requirements in order to earn interest, nor are you obligated to pay a maintenance fee. (You may be charged a $5 nonsufficient funds fee if you try to withdraw more money than is in your account.)

You can deposit funds online, with an ACH transfer, or a mobile check deposit. Because you don’t get a debit card, the only way to withdraw money is through an electronic transfer to an external bank account. Once you finalize the transfer, it usually takes two to three business days for it to go through. Barclays will also mail a check to account holders if you call and request one. 

Barclays Bank’s CDs also offer higher yields as long as you keep your entire deposit in place until the maturity date. Otherwise, you’ll be subject to early withdrawal penalties, which vary depending on the CD term. Since there are no minimum deposit requirements, Barclays CDs are accessible for those who may not be able to meet requirements at another bank. 

Currently, Barclays Bank offers the following CD terms:

• 12 months: 5.15% APY
• 18 months: 5.00% APY
• 24 months: 4.60% APY
• 36 months: 4.50% APY
• 48 months: 4.45% APY
• 60 months: 4.50% APY

You won’t be able to head to a Barclays for in-person customer service since it’s an online-only institution. However, the bank offers several alternatives:

• Secure message: You can log into your Barclays account and send a message to one of the bank’s representatives.
• Phone: Customer service is available from 8 a.m. to 8 p.m. EDT daily to answer questions or walk you through your account. 
• Website: The bank’s website has a frequently asked questions section and articles to help you with your financial life. 

Barclays doesn’t charge a monthly maintenance fee, nor does it require a certain balance to receive the top APYs. 

There are only two fees you may pay on an online savings account:

• Nonsufficient funds fee: $5
• Paper statements: $0.50 (This can be waived by opting for online statements.)

There are no fees to open or maintain your CD, but you may have to pay an early withdrawal penalty if you take out your money before the end of the term:

• Terms of 24 months or less: 90 days of simple interest on the amount you withdraw
• Terms longer than 24 months: 180 days of simple interest on the amount you withdraw

You can access the money in your online savings account through an online or ACH transfer to an account at another bank, or by requesting a paper check. (Barclays does not maintain any ATMs.)

At the end of a CD term, you can decide to roll over the funds automatically to a CD with the same term, select a different term, or withdraw the money and place it in another savings or checking account. You will have to pay an early withdrawal penalty if you take money out before the CD matures.

Barclays Bank is a great fit for someone looking for a simple online savings account who doesn’t need to access their funds often. If you’re someone who would rather bank all in one place, Barclays isn’t the best fit. You’d be better off with another online bank that offers a wider range of financial products and services. 

However, the competitive APYs on the savings account and the six CD terms, combined with the lack of a minimum deposit requirement, mean that Barclays’ accounts are an accessible way for people to take advantage of today’s high interest rates.

Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.

This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as the Home and Financial Services Editor for the Hearst E-Commerce team. Email her at [email protected].