The benefits explained
- Competitive interest rates – Savers looking for a high interest rate on their savings account and certificates of deposit (CD) will find them with Barclays.
- No monthly fees or minimum opening deposit requirements – Barclays does not require a minimum deposit when opening a new savings account or CD. There are also no monthly service fees, so you don’t have to meet a minimum balance requirement.
- Lucrative Credit Card Rewards – Barclays offers many credit cards that offer rewards, cashback and special financing promotions.
Disadvantages Explained
- No physical branches – If you have a question regarding your account, you cannot speak to someone in person. Instead, you’ll need to call or message Barclays online or through its mobile app.
- No checking accounts – Consumers who want one bank for all their needs should look elsewhere. Barclays does not offer checking accounts or many loan products that you would find at a traditional bank.
- Personal loans by invitation only – Although Barclays provides some loans, you cannot apply for a personal loan unless the bank sends you an invitation.
Who is Barclays Bank for?
Barclays Bank should appeal to most consumers who want an online banking account with competitive interest rates and no monthly fees. It may be a good choice if you:
- You are not looking to replace your current account
- No need to go to a branch
- You want competitive interest rates on your savings and CDs
- Need an account with no opening deposit requirement
- You don’t want to worry about monthly service fees
- You want to earn rewards with your credit cards
What does Barclays Bank offer?
Barclays Bank is an online-only bank that focuses on savings and CD deposit accounts. It also offers credit cards and personal loans (by invitation only), but it does not offer checking accounts or other loan products.
- Savings account
- CD
- Credit card
Savings account
Barclay’s high yield savings account offers a competitive offer annual percentage yield (APY) 1.80% significantly higher than the national average (as of August 19, 2022), but a little less than the best current online savings accounts. There is no minimum deposit requirement and there are no monthly service fees. You can transfer funds online to and from other banks or set up direct deposit to your account.
| BARCLAYS BANK SAVINGS ACCOUNTS | |||
|---|---|---|---|
| ACCOUNT NAME | MIN OPENING DEPOSIT | MONTHLY FEE | APY |
| Barclays Online Savings | $0 | $0 | 1.80% |
CD
Barclays offers CDs ranging from three months to five years. There is no monthly fee or minimum deposit amount. To maturity your CD will automatically renew at the current available interest rate. The bank will send you an email alert 30 days before your CD is due as a reminder. You have a 14-day grace period to withdraw or add funds without penalty.
If you withdraw your CD before maturity, there is a penalty. For CD terms of less than 24 months, the penalty is 90 days of simple interest. For terms of 24 months or more, the penalty is 180 days of simple interest. When the penalty is greater than the interest earned, the remaining amount will be deducted from your principal.
| BARCLAYS BANK CD PRICES | |
|---|---|
| TERM | APY |
| 12 months | 2.50% |
| 18 months | 2.80% |
| 24months | 2.90% |
| 36 months | 3.00% |
| 48 months | 3.05% |
| 60 months | 3.25% |
Credit card
Barclays partners with many travel and lifestyle brands to issue credit cards offering cash back, rewards and special promotions.
Airline credit cards
Hotel credit cards
Travel Credit Cards
Lifestyle credit cards
Other financial products offered by Barclays Bank
In addition to savings accounts, CDs and credit cards, Barclays Bank does not offer any other banking products apart from personal loans. However, you cannot apply for a personal loan online. The bank is currently only taking applications with the customers targeted by these offers.
Barclays Bank Customer Service
For bank accounts, customer service is available at 1-877-523-0478, 24 hours a day, seven days a week. You can also send a secure message online or through the mobile app.
Two mobile applications are available, depending on the type of products you have with Barclays Bank: bank accounts or credit cards. The deposit mobile app is available for iOS and Android devices, but it did not prove very popular when judging the number of downloads.
A credit card mobile app is also available for iOS and Android devices and has been downloaded much more often.
How to do business with Barclays Bank
As an online bank, the best way to open an account or access your accounts is online or through the bank’s mobile app. Prospective clients can find paper applications or links to apply through Barclays’ co-branded partners. For example, you may receive a request for an AAdvantage Aviator Red World Elite Mastercard on an American Airlines flight.
Deposits to your savings account or CD can be made via online transfers from linked banks, remote deposits from the mobile app or direct deposit. The app also lets you view history, initiate transactions, and contact customer service.
Verdict
Barclays Bank is an attractive online bank to earn interest on your savings. It offers competitive interest rates with no monthly fees or minimum balance requirements. The bank is the best complement to your existing bank as Barclays does not offer checking accounts, loans or other services that you would find at a full service bank. The credit cards offered by Barclays may suit your wallet if you are interested in its travel and lifestyle partners. The majority of its credit cards offer the possibility of earning money or rewards on your daily purchases.
Methodology
Investopedia is dedicated to providing consumers with unbiased and comprehensive bank reviews. We’ve collected over 20 data points from over 80 banks, including available products, interest rates, fees and affordability, to ensure our content helps users make the right decision for their savings and banking needs.