Barclays Savings Account Interest Rates: March 2024

Barclays Bank offers a single savings account option with a competitive (but not top-tier) APY

Fact checked by Michael Rosenston

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. 

Important

The APYs listed below are up to date as of the date of publication of this article. We review CD rates every two weeks and update the information below accordingly.

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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. 

Important

The FDIC insures deposits for up to $250,000 (per depositor, per ownership category, per FDIC-insured bank). 

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.

Compare Savings Account Rates

The interest rates that Barclays Bank offers its customers are competitive. For reference, here are the national average interest rates for a variety of deposit accounts as of October 16, 2023, according to the FDIC. 

• Savings Accounts: 0.46%
• 12-Month CD: 1.79%
• 24-Month CD: 1.50%
• 36-Month CD: 1.38%
• 48-Month CD: 1.30%
• 60-Month CD: 1.38%

Still, 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. 

Is Barclays Good for Savings?

Barclays Bank could be a solid choice for savers who are comfortable with online banking and don’t need direct ATM access to their funds. The bank’s online savings account offers a simple, uncomplicated way to earn above-average interest rates without having to worry about minimum balances, APY tiers, or monthly maintenance fees. However, if your primary goal is to earn the highest interest rate possible on your savings, you might want to consider other savings account options as well; check out the best high-yield savings accounts to see what you could get.

How Often Does Barclays Pay Interest?

You earn interest on your Barclays Savings account in the same basic way that interest works on savings accounts from other financial institutions. Interest begins to accrue on the same business day you deposit cash into your Barclays Savings account. From there, the interest will compound daily. The bank credits any interest you earn to your account once a month.

Is Barclays’ Savings Account FDIC-Insured?

Barclays Bank is a member of the Federal Deposit Insurance Corporation (FDIC). Therefore, any cash you deposit in a Barclays savings account, certificate of deposit, or other type of deposit account will receive the backing of FDIC insurance. 

Not all bank accounts are insured by the FDIC. When you choose a financial institution, it’s important to choose a bank that’s a member of the FDIC or a credit union that’s a member of the National Credit Union Administration (NCUA) to protect your savings. 

Is Barclays Bank Based in the U.S.?

Barclays’ online banking business along with its credit card and payment group is based in Wilmington, Delaware. The Barclays Wealth unit is headquartered in New York, New York. However, the parent company of Barclays Bank, now called Barclays UK, traces its roots back to 1690 in London, England. 

Read the original article on Investopedia.