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Barclays Online Savings Review: No Fees and High APY

Review Updated
Kailey Hagen
Author: Kailey Hagen
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Kailey Hagen has been writing about small businesses and finance for almost 10 years. Articles she's written for The Motley Fool have been syndicated to USA Today, MSN, and Yahoo! Finance. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.

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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 that our product ratings are not 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.

The Barclays Online Savings account might be right for you if: You're looking for a no-frills savings account that pays a competitive APY and has no withdrawal restrictions. The account also offers surprisingly few fees, even compared to its online competitors.

Ratings Methodology
Rates as of Dec 20, 2024

Barclays Online Savings

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
APY
4.00%
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.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
3.80%
Rate info Circle with letter I in it. 3.80% annual percentage yield as of December 27, 2024. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

up to 4.00%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
3.80%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

TIP

Check out the new Barclays Tiered Savings account

Barclays Tiered Savings offers a higher APY (up to 4.65% APY) than Barclays Online Savings. It may be a better option for you.

Read our full Barclays Tiered Savings review

Full Barclays Online Savings account review

Here's a closer look at what the Barclays Online Savings account has to offer.

Barclays Online Savings interest rate

Account APY Minimum Deposit
Barclays Online Savings 4.00% $0
Data source: Barclays.

If you're just starting to save money (for an emergency fund, perhaps?), this Barclays Online Savings account could be a good fit. Its 4.00% APY lines up with some of our other favorite accounts, and best of all, there's no minimum deposit to open the account or earn interest.

Fees

The Barclays Online Savings account's only fee is a $0.50 paper statement fee for those who opt for these instead of electronic statements.

This is even fewer fees than you see with most other online banks. But part of the reason for this is that Barclays doesn't permit certain actions, like wire transfers, that many other online banks offer at a fee.

Minimum balance

The Barclays Online Savings account doesn't have a minimum initial deposit requirement nor does it have minimum ongoing balance requirements. However, if you maintain a balance of less than $1 for 180 days or more, Barclays reserves the right to close the account.

Withdrawal limit

Barclays doesn't limit the number of withdrawals you're allowed to make per statement cycle. However, the maximum withdrawal you can make at one time is $250,000. This limit also applies to deposits.

Mobile app

The Barclays U.S. Savings app is available for iOS and Android devices. But consumers aren't very impressed by their capabilities. Many have criticized the app on both platforms for being glitchy and preventing consumers from viewing their account balance or transferring funds.

How to access your money

You have several options for depositing and withdrawing money from your Barclays Online Savings account. Here's a closer look at all of them.

Deposit options

Funds can be deposited into your Barclays Online Savings account in the following four ways:

  • Mobile deposit
  • Direct deposit
  • Electronic funds transfer
  • Mailed check

Barclays doesn't accept money orders, cash deposits, wire transfers, or third-party checks that are signed over to a person who isn't named on the front of the check.

Withdrawal options

When you want to withdraw money from your Barclays Online Savings account, you can request:

  • Electronic funds transfer
  • A mailed check from Barclays

It can take two to three business days for money from your Barclays account to get to your external bank account via online transfer.

Online user reviews

Barclays' customer reviews are largely negative. It currently has a 1.4 out of 5 rating on Trustpilot from over 10,000 customers. It has several negative reviews with the Better Business Bureau as well, but it maintains an A+ rating here, indicating that it responds to most complaints promptly.

Top perks

4.00% APY: Barclays Online Savings account delivers a competitively high APY applied to all balances. This is a nice bonus, considering that some competitors offer tiered rates that go up as balances increase or a promotional rate that expires after a set period of time.

$0 minimum deposit and no minimum balance requirement: With no minimum balance required, Barclays is an ideal choice for those who are beginning to build savings. Even super savers will appreciate the fact that you won't be penalized if you have to pull money from savings and leave your account with a low balance.

$0 monthly maintenance fee: Low or no fees are the norm for high-yield online savings accounts. This is one of the most important features for a prospective savings account, given that fees can quickly wipe out interest earnings.

FDIC insured: Finally, Barclays Online Savings accounts are covered by the same FDIC insurance as traditional bank savings accounts. You're covered for as much as $250,000 per depositor, per ownership category, per institution, in the event of a bank failure.

What could be improved

Available accounts: Barclays is focused on online savings, and you're limited in the types of accounts you can open. For example, you currently can't open a checking account with Barclays. If you'd prefer to do all of your banking in one place, you'll need to look elsewhere.

No ATMs for withdrawals: Money can be withdrawn only by check or transfer to an external bank. This makes the process of getting your money from your Barclays Online Savings account a slow process that takes several days.

Branch availability: Barclays is a British multinational bank and, as such, has only a handful of branches in the U.S. This means most customers are out of luck when it comes to taking care of transactions or getting support in person.

Is the Barclays Online Savings account FDIC insured?

Yes, the Barclays Online Savings account is insured up to $250,000 per person ($500,000 for joint accounts). This is the standard for all banks in the U.S., whether they have physical branches or operate online.

The Barclays Online Savings account is right for you if:

  • You want a high-yield savings account with few fees and no account minimums.
  • You prefer online banking over in-person banking.
  • You're okay withdrawing money by check or transferring it to an external account and don't need ATM access.

Keep reading about Barclays

Our savings account methodology

At Motley Fool Money, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.

Our scores are weighted as:

  • APY: 50%
  • Brand and reputation: 20%
  • Fees and minimums: 15%
  • Other perks: 15%

Learn more about how Motley Fool Money rates bank accounts.

FAQs

  • The Barclays Online Savings account is worth it if you can do your banking online. Since it doesn't have many brick-and-mortar locations in the U.S., you won't likely get in-person support as you might from another bank.

  • No, Barclays does not impose a limit on the number of withdrawals you can make from its Barclays Online Savings account. However, it's best not to withdraw cash too frequently if you hope to grow your savings.

  • The Barclays Online Savings account currently has a 4.00% APY. But like all savings accounts, this rate is subject to change over time.