3 Surprising Reasons Barclays Bank Has the Best CDs Right Now

Certificates of deposit (CDs) have made a huge comeback over the last couple of years, thanks in part to the Federal Reserve's rate hiking campaign. But that campaign might be over soon, as inflation appears to be decelerating. If inflation continues to weaken, a Fed rate cut in 2024 will become more likely, thereby causing a national drop in CD rates.

All that to say, you still have some time to lock in a great CD before rates fall. And if you're looking for a combination of great rates, no minimum deposit requirements, and a variety of terms, Barclays might just have the right CD package for you. With that in mind, let's look at why Barclays is one of the best CD providers.

1. Competitive CD rates

Barclays Online CDs boast excellent rates across all terms. As of this writing, Barclays' best rate is 4.00% APY on a 12-month term. While its most competitive rates are on short terms, its long-term CDs don't lag far behind, either.

Interest on Barclays Online CDs is credited to your account each month, which you can transfer to a Barclays account or checking account at another bank. Your interest will compound daily, giving you slightly more earning potential than a CD that compounds monthly.

To be fair, you'll find higher APYs on many of today's best CD rates. For example, a Bread Savings CD with a 12-month term has a 4.10% APY. But many of the best CDs have steep minimum deposits ($1,500, for instance, on the Bread Savings CD). That leads me to one of Barclays' competitive edges: no minimums.

2. No minimum required deposits

That's right: Barclays Online CDs have no minimum opening deposit requirement. In theory, you can open a Barclays Online CD with as little as $1. If you don't have much in savings, then this could help you capitalize on great CD rates without locking up a majority of your cash.

To be sure, this is a rare perk for a big bank. Most CD providers ask you to deposit at least $500, while others will put the opening limit at $25,000 or more.

This could make it difficult to build an effective CD ladder, as you might not have enough to meet the opening deposits for several different CDs. Barclays gives you the option to open several CDs, even if you don't have thousands of dollars to lock up.

3. Variety of terms

Finally, Barclays has several CD terms, ranging from six months to five years. The combination of no minimums plus a variety of short- and long-term CDs makes Barclays an excellent place to build an effective CD ladder.

That said, Barclays doesn't have as many short-term CDs as other banks. In fact, it really only has two: a 6-month CD and 12-month CD. Many CD providers will also offer 3-month and 9-month CDs, some even offering 1- and 2-month terms. If you're looking for shorter terms, then, you might be better served elsewhere.

But for all its combination of perks -- from high APYs to no minimums -- Barclays sure does make a good CD. Check out its full suite of online CDs, then compare them with the top CD rates to find the right CD for you.