Last Updated – 29th Jan 2020
Barclays is a London based bank that operators purely online.
Barclays offers excellent annual percentage yields (APY) on savings and certificate of deposit.
You would get the details later in the article.
- Is comfortable with banking online.
- Looking for high-interest rate in savings
- Having another savings account for daily needs.
Apart from the higher than the competitive interest rate, Barclays online savings account also offers the following handy features
- No minimum balance to open an account.
- No maximum balance. You can save as much as you can.
- Direct deposit facility available.
- Online banking facility
- Online savings tool for setting savings tool.
- No monthly maintenance fees.
- High 2.20% Annual Percentage Yield.
- Low overdraft fees of $5 compared to $30 or more of other banks.
- Funding account is linked so that there is no need to verify the bank every time a transfer needs to be made.
- Up to 4 beneficiaries are allowed
Barclays bank offers two different types of savings accounts:
#1. Barclays Online Savings Account.
#2. Barclays Dream Account.
Both the savings account and dream account earn same 2.20% APY, you get an extra 5% bonus on earned interest in dream account.
For this, you should avoid withdrawals and make at least one deposit every month.
While both the Online Savings Account and the Dream Account earn 2.20% APY with no fees and no minimums, the Dream Account can earn a little extra.
You earn a 5% bonus on earned interest every six months so long as you avoid any withdrawals and make at least one deposit every month.
|Type of account||APY||Monthly Fee||Bonus Earned on Interest|
|Barclays online savings account||2.20%||$0||Nil|
|Barclays Dream account||1.30%||$0||2.5% bonus on first 6 months interest for no withdrawal, another 2.5% on consecutive 6 months deposits|
Dream account limits the deposit amount to $1000 a month.
Also, you need to fund the deposits regularly for a whole year every month, to reap marginally better interest rate than a savings account.
Due to these restrictions, a savings account is most suited for all.
Check out – Best savings account
There are no minimum balance requirements and also no monthly fees. Overdraft fees is only $5 per transaction contrary to other banks that charge upwards of $30 for the same.
To withdraw money, Barclay’s bank offers access to the account from computer or smartphones
You can transfer money by mentioning designated account you would like to transfer to and enter the amount.
The amount will be transferred.
Customers can deposit funds in these ways:
- On the Barclays U.S. Savings app using Remote Deposit.
NOTE: Online deposits made after 3 PM Eastern time are not available until the next day.
- You can directly mail your cheque the old fashioned way. You can mail check to this address: P.O. Box 5358, carol stream, IL 60197.
- Direct deposit
Since Barclays is an online-only bank and it does not come with an ATM, you are truly limited to only 6 transactions per month as you can not do in person transactions at bank branches.
What I like (Pros)
- High APY
Barclays offer 2.20% APY which is very competitive in the market.
Also, the APY rate is applicable on all balances unlike other banks where APY rates are reduced for huge balances or reduced rates after the promotional period is over.
- No Minimum Balance
Barclays savings account has no minimum balance to be maintained.
Also, there are no monthly fees you need to worry about.
Your minimum balance needs to be high enough so that you will earn at least $0.01 within the statement cycle.
- Online Banking
This is another advantage for those who are comfortable banking online.
They have access to account 24/7 for checking balance and electronic transfers.
Savings goals can also be set up in order to reach your savings goal faster.
- FDIC Insurance
Your money in a Barclays savings account is safe and insured by the FDIC up to $250,000.
Also read – Checking account vs saving account
- Lack of Checking account – Barclays bank lacks a checking account alongside savings account.
This can be a problem for those who want access to frequent withdrawals,
- Online only – Not everyone is comfortable banking online.
Barclays is an online-only bank, this can be a problem for people who prefer brick and mortar banking.
- ATM Users – Due to lack of ATM network in the US, those who are reliant on ATM withdrawals for cash.
- Maximum of 6 Withdrawals limits – Since there can be no in-person withdrawals, you are truly limited to 6 transactions per month.
- Limited banking options: Unlike other big banks, Barclays Bank US does not offer products such as checking account, mortgage, and auto loans.
Only options are savings and CD.
- Be a US citizen.
- Be at least 18 years old.
- Have a Social Security number.
- Have a US residential address.
- Have a valid bank account.
As account opening is online, the procedure is straight forward. you need the following information to get started:
- Your current bank name, account number.
- Social security number.
After that, follow these simple steps:
#1. Visit barclays website here.
#2. Click on open an account.
#3. Fill in your first name, last name, social security number, date of birth, email address, primary phone number, and address.
#4. Select the type of ownership of account, single or joint account. Pick the type of account as a savings account. Mention the initial deposit amount and click on add this account.
#5. Then you need to enter your current account information with which you are funding Barclays online savings account.
#6. After that, you need to create a user ID, password along with a security question for password recovery.
Finally, you need to read and click agree to the terms and conditions and then click on submit.
NOTE: Barclays will test the funding account by transacting less than a dollar to check and verify your account.
Once that is done, you can fund your online savings account.