Barclays Savings Account Interest Rates: July 2024

Barclays Savings Account Rates

Barclays Bank is an online-only bank known for offering customers competitive interest rates on a limited selection of savings accounts and certificates of deposit (CDs).

The bank’s savings account interest rates are significantly higher than the national average (though higher APYs are often available elsewhere if you shop around). Barclays customers can also enjoy the convenience of no monthly maintenance fees, no minimum deposit requirements, and free online transfers to and from other financial institutions. 

Barclays Savings Accounts: Key Features

If you’re a fan of uncomplicated banking, Barclays could suit you. You don’t have to worry about account minimums. There’s no minimum deposit requirement you must meet, and no limit to the number of withdrawals you can make per month. Likewise, you don’t need to maintain a minimum balance to keep your savings account open, nor do you have to satisfy any minimum balance requirements to qualify for a higher APY tier or to be eligible for fee waivers. (Note: If you have a balance of less than $1 for 180 days or more, Barclays does reserve the right to close your account.)

As far as other bank fees are concerned, Barclays’ fees are notably lower than what other financial institutions might charge. For example, according to the Consumer Financial Protection Bureau (CFPB), the average Non-Sufficient Funds (NSF) fee was $34 in 2022. Barclays, by comparison, charges just $5 for NSF fees. 

Here are some of the fees you might incur using your Barclays Savings account.

• Stop Payment Fee: $0
• Cashier’s Check Fee: $5
• Returned Deposit Fee: $5 (per item)
• Non-Sufficient Funds (NSF) Fee: $5 (per item)
• Paper Statements: $0.50 per statement

Barclays Online Savings accounts and CDs also come with insurance from the Federal Deposit Insurance Corporation (FDIC). So, you can rest easy knowing that your deposits are safe in the unlikely event of a bank failure. 

Pros and Cons of Barclays Savings Accounts

Pros

• Low fees: Barclays doesn’t charge monthly maintenance fees, and its other fees are relatively low compared to many competitors. 
• No minimum balance requirement: Some banks require that you maintain a certain minimum balance to earn interest, but Barclays does not.  
• No withdrawal limits: Certain savings accounts have monthly withdrawal limits, but there are no monthly withdrawal limits with the Barclays Online Savings Account.

Cons

• No U.S. branches: Barclays has ample physical branches in the United Kingdom, but it doesn’t have any brick-and-mortar locations in the United States.
• No checking accounts available: While the Barclays Online Savings Account has some perks, this bank doesn’t offer a checking account you can use for everyday spending. 
• Limited withdrawal options: You’ll need to complete a transfer to an external bank account or request a paper check if you want to withdraw money from your Barclays savings account. There’s no ATM access with this account.

About Barclays: Other Savings Options

Barclays is a British international bank with headquarters based in London, England—where it traces its roots back over 300 years. The U.S. subsidiary of Barclays PLC, Barclays Bank, is located in Wilmington, Delaware. 

Barclays is perhaps best known for its variety of co-branded credit cards. Well-qualified applicants can open Barclays credit cards that feature rewards, cash back, and sometimes balance transfer opportunities. 

The online bank has limited options where savings options are concerned. Aside from the Barclays Online Savings Account, the only other type of savings-related deposit accounts the bank offers are certificates of deposit, but they sometimes have very competitive APYs; see Barclays CD rates to learn more.

Alternatives to Barclays Savings Accounts

Other High-Yield Savings Accounts

The Barclays Online Savings Account offers a competitive rate, but you may find that another high-yield savings account suits your needs better. Fortunately, many banking institutions offer high-yield savings accounts, often with rates above 4%.

Money Market Account

Money market accounts (MMAs) may come with rates similar to high-yield savings accounts, but they also have features you’d get with a checking account. Many MMAs come with checks and ATM cards, making it easy to withdraw your money when needed. 

Read the fine print before opening a money market account. While these accounts have some features similar to checking accounts, they often come with monthly withdrawal limits. 

Certificates of Deposit

Certificates of deposit (CDs) come with relatively high rates and set terms that may range from a month to 10 years. If you can afford to keep your money invested for a set period, a CD could be a smart option.

While the best certificates of deposit (CDs) come with generous rates, you’ll typically pay a penalty if you withdraw your money before your CD matures. This penalty is often equal to a few months’ worth of interest. 

Series I Savings Bonds

Series I saving bond rates are partially tied to inflation rates, so when inflation is high, so too are I bond rates. These bonds are backed by the U.S. Treasury and can continue to earn interest for 30 years. You can also cash them in sooner if you’d prefer, but if you do so earlier than five years, you’ll pay a penalty.

Brokerage Account

Purchasing stocks and other assets through a brokerage account could result in higher earnings than you’d get with the Barclays Online Savings Account. That said, you can also lose money when you invest, so keep that in mind before opening a brokerage account.

Compare Savings Account Rates

It’s important to shop around and compare what other banks and credit unions have to offer in terms of savings account rates and features. Although Barclays Bank savings rates outperform the national average, savvy shoppers may be able to find better APYs on high-yield savings accounts and CDs elsewhere. And some financial institutions may also offer savings account bonuses for new customers that could be worth considering as well. 

Frequently Asked Questions (FAQs)

Your Guide to Savings Accounts

• What Is a Savings Account and How Does It Work?
• What Is a High-Yield Savings Account?
• How to Open a High-Yield Savings Account
• How to Close a Savings Account
• Besides a Savings Account, Where Is the Safest Place to Keep My Money?
• How Many Savings Accounts Should I Have?
• How Savings Account Interest Rates Are Determined
• How Interest Works on Savings Accounts
• How Is a Savings Account Taxed?
• Money Market Fund vs. MMA vs. Savings Account: What’s the Difference?
• Certificates of Deposit (CDs) vs. Savings Accounts: Which Is Better for You?
• 4 Savings Accounts for Investors
• Best High-Yield Savings Accounts
• Best Free Savings Accounts
• Best Savings Accounts for Kids and Teens