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Barclays Bank Review: Competitive Rates, but Few Withdrawal Options

Published July 8, 2024
Steven Porrello
By: Steven Porrello
Steven Porrello
Steven Porrello
Writer

Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Our Banking Expert

Eric McWhinnie
Check IconFact Checked Eric McWhinnie
Eric McWhinnie
Eric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.
Award Icon 2024 Award Winner
Offer image for
Member FDIC.

Barclays

Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

As an online-only bank, Barclays offers some of the best APYs on savings accounts and CDs. Better yet, the account opens itself to most depositors with its no monthly service fees or opening minimum deposits. Account holders must be OK with online banking, however, as Barclays doesn't offer branch or ATM access for its U.S. online bank accounts.

Pros
  • Competitive APYs
  • No monthly fees
  • No minimum deposits
Cons
  • Online only; no branch access
  • No ATM access
  • No checking account

  • Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

    These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

    We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

    Learn more about how The Motley Fool Ascent rates bank accounts.

Is Barclays right for you?

Barclays may be a good option for you if:

  • You want a competitive APY on a savings account or CD.
  • You don't mind managing accounts online, nor need in-person support at brick-and-mortar branches.
  • You're OK waiting a few days to transfer money to an external account when you need to withdraw it.
  • You don't need to make cash deposits into your savings account.

Bank fees

Barclays fee Charge
Monthly maintenance fee $0
Cashier's check $5
Returned deposit item fee $0
Non-sufficient funds fee $0
Statement copy $0.50 per statement
Data source: Barclays.

Savings accounts

Barclays offers two free savings accounts -- both boast competitive interest rates.

Barclays Online Savings

Barclays Online Savings is the bank's flagship savings account. It has no monthly maintenance fee, no minimum balance to open, and pays interest at a competitive 4.35% APY. That rate is several times higher than the national average and one of the best on a high-yield savings account.

As an online-only savings account, Barclays Online Savings doesn't have branch or ATM access, nor does Barclays offer a matching checking account for quick transfers and withdrawals. Instead, you have to link an external bank account if you want to withdraw your money, or have Barclays mail a check to you. Likewise, deposits are limited to transfers, direct deposits, mobile check uploads, and mailed-in checks.

Barclays Online Savings
Open Account for Barclays Online Savings

On Barclays' Secure Website.

Member FDIC.

Ratings Methodology
Rates as of Jul 19, 2024

Barclays Online Savings

Open Account for Barclays Online Savings

On Barclays' Secure Website.

Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for Barclays Online Savings

On Barclays' Secure Website.

APY
4.35%
Min. To Earn APY
$0.01
  • Competitive APY
  • No monthly account fee
  • Comfort of a well-known brand and reputation
  • Unlimited number of external transfers (up to daily transaction limits)
  • FDIC insured
  • No ATM access
  • No branch access; online only

The Barclays Online Savings account is backed by one of the oldest and largest financial institutions in the world. It has a competitive APY, no monthly fees, and doesn't have a minimum deposit requirement. Unlike many savings accounts, Barclays doesn't limit the number of withdrawals that can be made from its savings accounts. It's perfect for those who are accustomed to online banking, as you'll need to link an external bank account to access your money.

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  • The Barclays Tiered Savings is an online savings account with an APY that increases with larger balances. The tier in which your balance falls will depend on your end of day balance. The account doesn't have a monthly service fee, nor a minimum opening deposit. Accounts that have a zero balance for six months, however, will close automatically.

Certificates of deposit

Barclays Online CDs are available in seven different CD term lengths ranging from six months to five years. Its CD rates are competitive, especially on its short-term CDs. Better yet, Barclays doesn't have a minimum opening deposit requirement -- all you need is a penny to earn interest. This differs from the high minimums that some of the best CDs require.

Interest is compounded daily and credited to your account each month. As is typical for a CD provider, Barclays will charge an early withdrawal penalty for any withdrawal of your principal before maturity.

CDs with terms equal to or less than 24 months will get hit with a penalty equal to 90 days of simple interest on the amount withdrawn, while those with a term of more than 24 months will have a penalty equal to 180 days of simple interest.

Rates as of July 19, 2024

APY = Annual Percentage Yield

Offer image for Barclays Online CD
Barclays Online CD
Bottom Line

Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. Those interested in building longer-term CD ladders will find plenty to like here.

MINIMUM DEPOSIT $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

6 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
4.85% 5.00% 4.50% 4.00% 3.50% 3.50% 3.75%

Customer experience

As a credit card issuer, a U.K. brick-and-mortar financial institution, a loan provider, and a U.S. online bank, Barclays has a hodgepodge of reviews online. With that in mind, let's take a look at what customers are saying.

Customer reviews

Barclays doesn't have stellar customer service reviews on third-party sites. That said, the majority of its negative reviews focus on Barclays credit credits, not its savings accounts or CDs. Since its bank accounts have a separate customer service phone number and mobile app than its credit cards, these reviews may not accurately reflect Barclays' customer service for online banking clients.

Regardless, its online ratings are as follows.

  • Better Business Bureau rating: 1.04 out of 5 stars (based on over 420 reviews)
  • Trustpilot rating: 1.6 out of 5 stars (based on 371 reviews)

Customer service

Customers are generally not pleased with Barclays as a credit card issuer, nor are they particularly happy about its customer service at branches in the U.K. The reviews on its U.S. online banking services, however, are few and far between. At the very least, that means few U.S. banking clients are using third-party sites to complain about Barclays' customer service.

If you have banking issues, you can call Barclays seven days a week, 8 a.m. to 8 p.m. EDT, at 888-710-8756.

Mobile app

The Barclays U.S. Savings app is a basic banking app that lets you check your balance, make one-time transfers, and deposit checks.

The consensus among App Store and Google Play users is that the app is outdated and clunky. Most users seem irate with its lack of functionality. Even something as basic as logging into the app seems to be causing people a lot of trouble. As one Google Play user pointed out, the app hasn't been updated since June 2023, which might be why it crashes and malfunctions so frequently.

  • App Store rating: 3.2 out of 5 stars (based on over 1,100 reviews)
  • Google Play rating: 1.9 out of 5 stars (based on over 640 reviews)

Physical locations

As an online-only bank, Barclays doesn't have any physical branches, nor does it offer ATM access. If you needed to withdraw cash, then, you would need to link your Barclays account to an external account at a bank with branch or ATM access.

How does Barclays compare?

Although Barclays has competitive APYs, its accounts won't be right for everyone. If you're looking for more withdrawal options or higher APYs, here are some competitors to consider.

Barclays vs. Ally

If you want your online bank to have a checking account, Ally Bank is a compelling competitor to Barclays. It also offers competitive rates on CDs and savings accounts. In addition to these, Ally offers its Ally Spending Account that gives you access to over 43,000 Allpoint ATMs, plus a monthly $10 out-of-network fee reimbursement.

Barclays vs. Bread Financial

For those who want to earn more interest on their savings, Bread Financial has some of the best APYs that we've found. Although its deposit accounts have much higher minimums than Barclays, it could be well worth it for the extra interest they can earn. Like Barclays, Bread Financial doesn't have a checking account, only a high-yield savings account and several terms of CDs.

FAQs

  • Yes, Barclays is safe. The bank offers FDIC insurance up to the maximum amount allowed by law, which is currently $250,000 per depositor, per ownership category.

  • Barclays lets you open and maintain a total of 25 accounts, with a maximum of three Tiered Savings Accounts.

  • Barclays can be a good bank if you don't mind managing your accounts online. Since it doesn't have brick-and-mortar branches, all customer service interactions will mostly be done over the phone. If you'd rather get in-person support, you might be better off with a bank that has a large network of physical branches.