Barclays Online Savings Review

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Last updated on February 8, 2023 Comments: 13

Barclays online savings account offers one of the highest interest rates and lowest fees available today. In this review, we cover the details to help you determine if Barclays Bank is right for you.

Barclays Bank is a relative newcomer to the U.S. online savings market. It’s been around as a bank, though, since 1690. That kind of longevity is enough to make some customers feel comfortable with keeping their money here. But you should take a second look at this bank’s online savings account offerings even if you don’t find its history impressive.

First, we’ll do a quick rundown of the account’s features. Then we’ll talk more in depth about whether or not it’s the right account for your needs.

Features and Fees

The Barclays Online Savings Account stands out for several reasons, not least of which is its APY. Here are the main features:

  • 4.00% APY
  • No monthly maintenance fees
  • No minimum balance to open
  • 24/7 online access
  • Easy online transfers to and from other banks
  • Savings assistant tool to help you reach your goals
  • Remote Deposit available through an app
  • Link your savings to your external checking account

Let’s Talk Interest

As we’ve said elsewhere, with interest rates well under 2%, this shouldn’t be your first consideration for a savings account. However, it should fall on your list of things to consider. And in the interest rate game, Barclays comes out ahead of most banks.

Barclays FAQs says that your deposits will start earning that interest just as soon as they post to your account–usually within 2 or 3 days of initiating transfer.

No Maintenance Fees

These days, you really shouldn’t own a savings account that regularly charges you fees. There’s just no reason for it when there are so many excellent accounts available for free. This is just one example. There are no monthly maintenance fees, and there are no minimum balances or fees.

If you’re just starting out and you can’t put a lot into savings, this is definitely an account to consider. Some others don’t offer fee-free privileges until you have a decent balance in your account. But with the Barclays Online Savings Account, you don’t have to worry about that particular issue.

With all this said, the account does have some fees and consequences for certain savings behavior, including:

  • Barclays has the right to close the account if you have a balance of less than $1.00 for 180 days.
  • The bank will charge a $5 Non-Sufficient Funds fee if you initiate a transfer but don’t have enough money to cover it.
  • Make too many transactions–more than six withdrawals in a month–and Barclays will charge $5 per withdrawal after that.
  • You can get a cashier’s check, but it will cost $5.
  • You will be charged $5 per returned deposit item, up to $50 in one day.
  • For a $25 fee, you can have your account documentation via Express Mail or rush delivery.

Easy Access to Your Money

One of the advantages of online accounts like this one is that you’ll have several ways to transfer money to and from the account. You can use your smartphone to deposit a check remotely. You can also link the account to external checking accounts, from which you can deposit money into the account or take it out. And you can set up direct deposit. You can also get a check by mail.

The Bottom Line

So is the Barclays Online Savings Account right for you? If you need an easy way to save money but don’t want it directly connected to your main checking account, it definitely could be. This would be a great account as part of your emergency plan, or one to save for longer-term goals like buying a home or a car. With its low fees and high interest rates, it’s definitely a winner worth considering. If you still didn’t decide and wish to research for more alternatives, read those brief online savings account reviews.

Article comments

Anonymous says:

I have a Barclays online savings account and have been happy with the service and the 1% is much better than the .01% I would get at Chase where I have my online checking. As described above the process takes about 5 days and having had Ally, ING, etc. in the past, Barclays service seems no better or worse from my 2 years with them. 9/14/15

Anonymous says:

March 12, 2014 – I have the dream account – which max deposit a month is $1k. Biggest problem, when I set-up to link to my other banks (add external account from the Chase website or BOA) the test deposits counted toward my $1K – so when I tried to transfer $1K – it would get rejected. My payroll department had so many problems with deposits getting rejected (because of these trial deposits) they deleted it & just added the money to another account. When you call customer service – they don’t know anything. They are looking at the same screen you are looking at. I called because I got an email about a rejected deposit and the person had no idea what I was talking about…put me on hold to research…even though I received an email. Now I’m having a problem with an ACH transfer out of my account – the supposed receiving bank has no idea what I’m talking about. The person who I spoke with in Customer Service did some research…then she came back to explain. I pointed out the holes in her response – she put me on hold again to ask how to better phrase it?? Are you kidding me??? All the Customer Service people have to “research” no one can ever give you an answer.

It’s all very automated and that’s why their customer service stinks! Oh and they are not 24/7 – 8-8 EST.

Yes, they have high interest rates but I’ve been shopping around – too much competition for such bad service!

Anonymous says:

Barclays US Savings will never mail your full SSN. There IS an electronic version of the 1099 but it will also be automagically sent out during January – it will not contain SSN, if anything only the last 4.

Anonymous says:

Anyone can provide insight on the following please?
Does Barclays US ever mail documents containing your full SSN?
Does Barclays US have an electronic version of the 1099-int ? If they have to mail, does it contain your full SSN?

I almost went with Ally until I discovered that they do both of the above, which is not very secure.

Anonymous says:

Barclays US never sends you anything in the mail except to confirm you have successfully opened an account, it does NOT contain a soc.

Yes it only does electronic 1099.

Anonymous says:

Any update on the funds transfer process and how long it takes? I am shopping around for a new online savings account after the rate on my HSBC online account dropped to a ridiculous 0.05%. (What a joke!). The funds transfer process with HSBC takes 3 business days which was annoying enough. I read somewhere that Barclays can take up to 5 business days. Is that true? If that’s so, it’s almost not worth it. Thanks!

Anonymous says:

Does Barclay’s do a hard credit pull when applying for a savings account?

Anonymous says:

No they do not

Anonymous says:

Much easier and less convoluted than the CIT Bank registration process which pays the same interest rate. Had money parked earning the the DISCOVER savings rate of 0.8% and waited for them to bump me up to the higher Premier rate for larger balances but it never happened.

Anonymous says:

I have 55+ account in TD Bank. I don’t get charged for any kind of fee.

Anonymous says:

As of right now the Interest Ratea show:
1.00% for Online Savings &
1.85% for 5 Year Online CDs

Anonymous says:

It would be really helpful if these comments were dated. Can that feature be added?

Anonymous says:

YES!!! Please date!!