Barclays Bank 2021 Updates: High-yield Savings Accounts and CDs

By Christian TMLT April 8, 2021 Finance 0 Comments

Barclays Bank is the best option for savers who want simple online banking and competitive rates. However, this article covers Barclay’s strong interest rates on its savings and CD accounts.

Barclays is an older financial institution, but it’s only been in the last few years they been pushing hard into the US banking space.

They are becoming well known for having top-yielding savings accounts and CDs, but they also have other banking products that are helpful to consumers.

In this article:

About Barclays

Barclays Bank Delaware is the official name of Barclays’ U.S. retail internet banking subsidiary. Barclays traces its roots back to a partnership that lent money to goldsmiths in London in 1690 and adopted the Barclays name in 1736.

Furthermore, Barclays first launched a U.S. retail banking business in 1965, although Barclays Bank Delaware dates from 2003 when the U.K. parent bought credit card company Juniper Bank from CIBC.

However, Barclays began offering online savings accounts and CDs in 2012.

Pros & Cons of Barclays

Pros

High-Interest Rates. Barclays’ rates are among the highest in the nation
No Minimum Balance Requirements. You don’t need to deposit a certain amount of money to start earning high-interest rates.
No Monthly Account Fees. Fees are few and far between with a Barclays account.
Nonsufficient Funds Fee Only $5. Although your goal should be to always have enough money in your account, the NSF fee of $5 is far cheaper than the usual $30 found at other banks.

Cons

Online Only. If you like banking the old-fashioned way, you’re out of luck with Barclays.
No Dedicated ATM Network. There are no ATMs for withdrawing cash, and there are no reimbursements offered for using another bank’s ATMs. These savings accounts are meant for long-term savings.
No Checking Account. Barclays offers only savings and CD accounts, so you’ll probably need to use another bank for checking.

What Does Barclays Bank Offer?

Barclays Bank offers online-only, high-interest-rate savings and CD accounts.

1. Savings Accounts

Barclays offers an online savings account which is FDIC insured. There is no minimum deposit amount, and there are no monthly maintenance fees.

The Online Savings Account is at a respectable APY, but it isn’t in Bankrate’s top tier for highest APYs.

What we like

You can earn a competitive rate.
The Online Savings Account has no minimum balance to open the account.
No monthly maintenance fees.

What we don’t

There are savings accounts out there with higher APYs.
The Online Savings Account doesn’t have an ATM card available.
You’re not rewarded for putting more money in the Barclays savings since there aren’t tiered APYs.

2. CD Rates

Barclays Bank offers various standard CDs. Terms available include three-month CDs through 5-year CDs. The accounts are ideal for customers without a lot of money to invest.

Early withdrawal penalties apply when withdrawing part of the principal. For a CD with a term of less than 24 months, the penalty is 90 days of simple interest.

For a CD with a term of more than 24 months, the penalty is 180 days of simple interest.

What we like

Interest compounds daily.
Interest can be withdrawn on a monthly basis before the CD matures.
No minimum deposit required to open a CD.

What we don’t

No special types of CDs are available.
Rates are competitive, but other online banks pay higher yields.

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3. Bank Experience

You’re not signing up for these savings accounts for their digital bells and whistles.

Despite being an online-only bank, Barclays only offers a pretty basic mobile app for savings customers. On the app, you can accomplish tasks like check your balance or deposit checks.

On the other hand, you might not need extensive digital functionality when it comes to your savings account. Moreover, Barclays stands out in that it offers you the ability to contact the bank 24 hours a day, seven days a week.

The bank is expected to roll out an online-only checking account in 2019.

Other Barclays Bank Services

It’s important to consider all services offered by a bank and whether or not they meet your needs before you open an account. It’s always more convenient when you can do all of your banking in the same place.

This is one of the major drawbacks of working with Barclays Bank. The bank focuses primarily on offering savings accounts and CDs. If you need a checking account or loan, you’ll need to work with a different bank.

Many online banks offer a full suite of services, including checking, savings, lending, and investment services.

However, the Barclays online savings account is a great addition to an existing full-service bank.

Is Barclays Worth it?

Yes. Barclays is a well-known bank.

While there is a lot of competition for high-yield savings accounts and CDs right now, with most offering very similar products, sometimes it comes down to personal preference.

If you have existing accounts with Barclays, opening your high-yield accounts with them will make transferring money between accounts easier.

Also, not all high-yield offerings have a $0 minimum deposit for opening. Some require a few thousand dollars. This makes Barclays a good deal.

FAQs

1. Is the Barclays online savings account FDIC-insured?

Yes, the Barclays online savings account is insured by the FDIC. The Federal Deposit Insurance Corporation protects deposits at banks in the United States, promising to return any money that is lost if a bank is unable to return your deposits. Even if Barclays Bank goes bankrupt, the FDIC will reimburse you for any money lost, up to the $250,000 insurance limit.

2. Does Barclays Bank have an app?

Yes, Barclays Bank offers the Barclays US Savings app, which you can use to view and manage your account from your phone. This includes features such as instant transfers and mobile check deposit. If you’d rather not install an app on your phone, you can access most of these features through your phone’s web browser.

3. Is Barclays Bank a foreign bank?

Barclays is based out of the United Kingdom. However, that doesn’t mean that Barclays Bank is considered a foreign bank. Barclays Bank Online is the company’s American arm, which is headquartered in the United States. You won’t have to worry about currency conversion or dealing with complicated tax situations brought on by having an account at a foreign bank.

Barclays Bank has been serving customers well for centuries, but it seems to be just testing the waters with its online bank component.

Even though it only offers savings accounts online in the United States, it is able to offer great yields on those products, making it a solid option for those shopping for a place to park mid-term savings or an emergency fund.

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