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Barclays Online Savings Review: No Fees and High APY Perks
By: Kailey Hagen
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The Barclays Online Savings account checks many of the boxes for what's essential in a savings account, including a high annual percentage yield (APY), a focus on cutting fees, and exceptional convenience. Learn more about the benefits of this account -- as well as areas it could be improved -- in our in-depth Barclays Online Savings review.
Rates as
of Sept. 24, 2020
| Offer | APY | Best For |
|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5 stars
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.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. Barclays Online Savings Member, FDIC |
APY: 0.60% | Best For: No monthly maintenance fee |
Top perks of the Barclays Online Savings account
0.60% APY: Barclays Online Savings account delivers a competitively high APY, and that APY applies 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 to get started or maintain your account, 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.
Highly rated mobile app: Mobile convenience is a must-have for an online savings account. You can make mobile check deposits and free electronic transfers to your Barclays Online Savings account. Both the iOS and Android apps have received high marks from users as well.
FDIC insured:Â Finally, Barclays Online 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 institution, in the event of a bank failure.
What could be improved
Withdrawal limit fees: The fee for surpassing six withdrawals during a statement cycle is $5 per transaction. Fees for making too many withdrawals are common on high-yield savings accounts, because federal restrictions limit customers to six withdrawals a month. Still, some high-yield accounts don't charge account holders for excessive withdrawals despite these federal rules. If you anticipate withdrawing funds frequently, consider a different kind of account.
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.
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 has branches in five U.S. states, and it has just one branch in each of those states. This means most customers are out of luck when it comes to getting local in-person support or taking care of transactions at a branch in their area. This is a common drawback we see with most online savings accounts.
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 one of 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 savings account comparison
While Barclays Online Savings account is a good option for many, it's not right for everyone. Here are a couple of other online savings account options to consider.
Rates as
of Sept. 24, 2020
The Barclays Online Savings account is right for you if:
The Barclays Online Savings account is a good fit for you if you value a high yield and low fees over in-person assistance at branch locations or ATM access. Those with high balances have the potential to earn the most with this account, although the lack of minimum balance requirements means anyone can reap the rewards of its high APY.
About the Author
Kailey has been writing about banks, credit cards, loans, and all things personal finance since 2012. She also writes for The Ascent's parent company, The Motley Fool. Her work has appeared on USA Today, CNN Money, Fox Business, and MSN Money. She's a graduate of the University of Wisconsin and happily lives in the woods of northern Wisconsin where she grew up.
