Barclays is an online-only financial institution.
Barclays; Alyssa Powell/Business Insider
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The bottom line: Barclays Online Savings Account savings account is its strongest product, but it doesn’t have a checking account. If you need to access your cash quickly, you may want an account with a different bank that has both savings and checking.
Overall bank rating
FeatureInsider rating (out of 5)Savings4.25CD4Trustworthiness4.5Total4.25
Pros and cons
Pros:Cons:
High interest rate on savings account and CDs
No minimum opening deposit required for savings account or CD
Low-to-standard withdrawal penalties for CD
No checking account optionLow mobile app ratings in the Apple storeNeed to transfer money to an external bank to access it
Barclays Online Savings Account
The Barclays Online Savings Account is a decent high-yield savings option. It pays a competitive APY, but you can find better at other online banks.
Accessing cash quickly is difficult with Barclays, though. Because the bank doesn’t have a checking account, you can’t just transfer money between Barclays accounts, then immediately swipe your debit card. You’ll have to transfer funds to an external bank account, which could take a couple of business days.
Barclays Online Certificate of Deposit
The Barclays Online CD offers strong CDs with competitive interest rates, regardless of which term you choose. Unlike most banks, it doesn’t require a minimum deposit, so you can start with any amount. The bank also charges relatively low early withdrawal penalties should you need funds before your CD matures.
How Barclays works
Barclays is an online bank that has a high-yield savings account and CDs.
Live customer service is available seven days per week, and you can call from 8:00 a.m. to 8:00 p.m. EST.
The Barclays mobile app is more liked by Android customers than Apple customers. The app has received 4.1 out of 5 stars in the Google Play store, but only 2.3 out of 5 stars in the Apple store.
Your deposits are FDIC insured for $250,000, or $500,000 for joint accounts.
Is Barclays trustworthy?
The Better Business Bureau gives Barclays an A+ rating. A strong BBB rating signifies the company is transparent in how it handles business, responds effectively to customer complaints, and is honest in its advertising.
Although Barclays has a great BBB rating, it does have one recent public scandal. In 2018, the bank paid the US $2 billion for deceiving investors about the quality of residential mortgage-backed securities from 2005 to 2007, causing people to lose money.
How Barclays compares
We compared Barclays to two other online banks that pay high interest rates on savings: Ally and Marcus by Goldman Sachs.
Barclays
Ally
Goldman Sachs
Savings APY
0.80% APY
Savings APY
0.80% APY
Savings APY
0.80% APY
CD APY
0.10% to 0.65% APY
CD APY
0.35% to 1.00% APY
CD APY
0.60% to 1.05%
Minimum deposits
None
Minimum deposits
None
Minimum deposits
$500 for CDs
Barclays Barclays Online Savings Account
Ally Ally High Yield Savings Account
Goldman Sachs Marcus by Goldman Sachs High Yield Online Savings Account
All three banks have a lot of similarities: competitive interest rates, no monthly services fees, and no minimum opening deposits.
If you are looking for savings accounts with budgeting tools, you might like Ally’s bucket system, which lets you save for multiple goals in one savings account, such as “Emergency Fund” or “Vacation.” If you’re strictly looking for the highest rates, you’ll want to look at Barclays for savings accounts, and either Marcus or Barclays for CDs.
Something to keep in mind is that Marcus and Barclays only offer a high-yield savings account and CDs. If you’re looking for a bank to open a checking or money market account, then you’ll prefer Ally to Barclays or Marcus (which have neither).
Frequently asked questions (FAQ)
Is Barclays a good bank?
Barclays is a good option if you’re looking for high-yield savings accounts or CDs. You’ll earn a competitive interest rate that’s ten times higher than the national average on savings accounts.
If you’re searching for checking accounts or money market accounts, you’ll have to look elsewhere because Barclays doesn’t have either.
Is Barclays bank safe?
Barclays is an FDIC-insured bank. When a bank is federally insured, that means the money in your bank account is safe even in the rare situation that a bank shuts down. Up to $250,000 is secure in a bank account.