Barclays, the historic London-based bank, is a transatlantic financial services conglomerate serving customers in 40 countries. In the U.S., its retail banking operation is completely digital and focuses exclusively on savers. The bank also issues dozens of co-branded credit cards with airlines, hotels, and other partners. Wondering if Barclays has something for you? This in-depth review can help you decide.
- Pros and Cons
- Company Overview
Competitive APYs for savings and CD products
No minimum deposit required to open an account
No monthly maintenance fees
No checking account option
No U.S. branches or ATM access
- Official Website www.banking.barclaysus.com
- Bank Product Offerings Savings accounts, certificates of deposit, and credit cards
- Customer Service Available over the phone (888-710-8756) seven days a week from 8 a.m. to 8 p.m. Eastern, as well as online and via mobile banking.
- Year Founded 1690
Who Is Barclays Bank Best For?
Barclays may be a good fit for savers who want simple online banking and competitive rates. Consider opening an account if you are:
- Just getting started with saving and want to avoid a minimum balance requirement
- Looking for savings accounts and certificates of deposit (CDs) in one place
- Interested in creating a CD ladder
- Hoping to avoid monthly maintenance fees
What Does Barclays Bank Offer?
While checking accounts aren't an option with Barclays in the U.S., the bank does offer:
Online Savings Account
This is a high-yield savings account. Here are the key features:
- A competitive 0.45% APY on all balances as of Nov. 24, 2020
- No minimum balance fees or monthly maintenance fees
- No minimum deposit required to open
- Add money via direct deposit, mobile check deposit, ACH transfers, or mailing a paper check
This account’s APY ranks it among the better high-yield savings accounts. The absence of minimum balance or deposit requirements makes it a competitive offering, too, particularly if you're just getting started with saving and don't have a lot of cash to deposit.
Since this is a savings account, federal regulations limit you to six withdrawals or transfers per month. If you exceed six, you will incur a $5 fee for each additional transaction.
As downsides go, the main thing is access. You won't have an ATM or debit card with this account. Barclays limits your withdrawal transactions to ACH transfers to a linked external bank account, or a paper check. However, if you need to add money, you have more options.
Certificates of deposit are less flexible than savings accounts when it comes to withdrawals, but in exchange, they may offer even higher rates for savers. Barclays has online CD accounts with terms ranging from three to 60 months. Here are the key highlights:
- Very competitive rates on 12-month and 18-month CDs
- No minimum balance to open an account
- No monthly maintenance fees
- Interest that compounds daily
- Various CD terms so you can create a ladder
Here are the rates you can earn for each CD option, as of Oct. 15, 2020:
|Barclays Bank CD Rates|
Early withdrawal penalties vary by term and are as follows:
- CDs with terms of three to 24 months have an early withdrawal penalty worth 90 days of interest on the amount withdrawn.
- CDs with terms of 36 to 60 months have an early withdrawal penalty worth 180 days of interest on the amount withdrawn.
Laddering multiple CDs can be an easy way to take advantage of higher rates. By opening CDs with shorter and longer terms, you can have access to your savings on a flexible basis. Once one of your CDs matures, you have the option to roll it into a new CD or withdraw your initial deposit along with the interest earned.
Barclays doesn't offer IRA CDs, which combine the benefits of saving in a CD with the tax benefits of an individual retirement account.
Barclays issues many co-branded credit cards, mostly with travel partners. Here are some of the cards you can find at this bank:
- Wyndham Rewards Visa Card
- Choice Privileges Visa Signature Card
- Diamond Resorts World Mastercard
- RCI Elite Rewards Mastercard
- JetBlue Card
- JetBlue Plus Card
- Carnival World Mastercard
- Holland America Line Rewards Visa Card
- Princess Cruises Rewards Visa Card
- FRONTIER Airlines World Mastercard
- AAdvantage Aviator Red World Elite Mastercard
- Hawaiian Airlines World Elite Mastercard
- Miles & More World Elite Mastercard
- Priceline Rewards Visa Card
- Uber Credit Card
- Upromise Mastercard
- NFL Extra Points Credit Card
- Barclaycard Financing Visa
- Barnes and Noble Mastercard
- AAdvantage Aviator Business Mastercard
- Hawaiian Airlines Business Mastercard
- JetBlue Business Card
Other Financial Products From Barclays Bank
- Personal loans (by invitation only)
Barclays Bank Customer Service
Barclays offers the standard customer service benefits you'd expect with a bank of this size. That includes the option to manage your account over the phone, online or via mobile banking. You can speak with someone on the phone seven days a week from 8 a.m. to 8 p.m. Eastern.
How to Bank With Barclays
You can open an account with Barclays online or by calling 888-710-8756. Remember, you'll need to provide certain personal information when opening a bank account. Required information includes your social security number and the routing and account number for an external bank account from which you will make your initial deposit.
Barclays can be a great option for new savers, with competitive APYs on both high-yield savings accounts and CDs, even for the littlest of amounts. Not only can the rates help you grow your money, but Barclays doesn’t charge monthly maintenance fees or enforce minimum deposit requirements.
Barclays isn’t a one-stop shop for your banking, since you can’t get a checking account. You also won’t have the convenience of ATM access to your savings, and you must be comfortable with managing your money online because there are no branches.