Our take: Barclays Bank delivers strong savings rates and an impressive history, but its lack of a checking account keeps it from being a true one-stop shop. It’s best for high-balance savers and brand-loyal credit card users who don’t mind managing their money elsewhere.
Banking Services
- Highly competitive yields on both savings accounts
- FDIC insurance
- Easy connection with external banks
- Rewards credit cards for various purchase lifestyles
- Sign-up bonuses on credit cards
- Large deposit required for highest APY tier
- No checking account
- No branches or ATMs in the U.S.
| Products offered | Savings accounts (2), CDs (6 – 60 months), several rewards credit cards, and invitation-only personal loans |
| Savings rate (APY) | 3.70% – 3.85%, Barclays Tiered Savings Accountⓘ |
| Savings rate (APY) | 3.60%, Barclays Online Savings Accountⓘ |
| CD rate (APY) | 2.00% – 3.50%ⓘ |
| Bank fees | No monthly maintenance fees |
| Credit card rewards | Cash back and rewards points, depending on card |
| Credit card fees | Varies by card |
What is Barclays Bank (Barclays US)?
Barclays Bank was established in the United Kingdom in 1690 and has been an innovative presence in the country ever since, debuting the U.K.’s first (and the world’s first) ATM in 1967 and the U.K.’s first debit card in 1987.
Barclays now offers banking services here in the United States as well, though it’s an online-only bank, so you can’t find any physical branches. In the U.S., Barclays Bank’s focus is primarily on credit cards, but it has decent options for Americans interested in a safe savings account that pays out high interest as well.
In my Barclays Bank review below, I’ll cover all the major account types with Barclays, explore the pros and cons, and detail who Barclays is right for. I’ll be the first to admit that, while Barclays is a good choice for a savings account, it’s not anywhere near the top of my list as a full-service bank (and it’s not where I choose to bank), but there are several customers who might be well-served by Barclays.
Barclays Bank accounts, CDs, credit cards, and loans
The core bank offerings through Barclays are the high-yield savings accounts (Tiered Savings and Online Savings) and the certificates of deposit (CDs). Barclays also offers a long list of credit cards (26 at time of publishing) and an invitation-only personal loan product for customers with an account. Notably, Barclays Bank does not offer a checking account.
Below, I’ll break down each of these core products.
Tiered Savings
Barclays offers two phenomenal high-yield savings accounts, but the Tiered Savings is typically the better option for any account balance under $1 million. As the name suggests, savings rates (annual percentage yields, or APYs) are tiered, with higher balances producing higher yields, but the lowest tier consistently has competitive yields. And unlike some banks, Barclays doesn’t charge a monthly maintenance fee, nor does it have a minimum balance requirement to open.
After building an emergency fund, pay down your high-interest debts and max out your tax-advantaged retirement contributions as part of a diversified investment portfolio.
Online Savings
Barclays offers an alternative to Tiered Savings: the Online Savings account. This one isn’t tiered; the APY remains consistent no matter your balance. Like the Tiered Savings account, Barclays’ Online Savings offers:
- Easy transfers to and from other banks
- No monthly maintenance fees
- No minimum balances to open
- FDIC insurance
That first point—easy transfers to and from other banks—is especially important. Why? Because Barclays does not offer a checking account.
I’ll dive more into this below, but it’s worth noting that not being able to keep checking and savings accounts in the same bank can be a nuisance, and it’s the main reason Barclays wouldn’t be my top choice for a savings account.
Online CDs
Barclays offers a way to earn slightly more, even with a smaller deposit: its online CDs.
CDs, or certificates of deposit, are a less liquid (but still insured and risk-averse) way to grow your savings. You choose a term—six to 60 months with Barclays—to let your deposit sit, untouched*, and accrue interest. When the CD matures, you’ll get all the cash you originally deposited, plus the additional interest, which compounds daily. There is a penalty for an early termination, so CDS are often a better option if you’re confident that you won’t need the money until after the term ends.
*While the money must be left untouched, you can receive monthly interest disbursements.
Barclays credit cards
When used responsibly, credit cards are an important part of your finances. Using your credit card for daily purchases—and then paying it off in full each month—can establish a solid payment history and boost your credit score. Using significantly less credit than you have available (and paying off what you do borrow quickly) also keeps your credit utilization low, another major factor in calculating your score.
Even better, you can earn money (or points) when spending with rewards credit cards, if you qualify.
Barclays offers a large mix of co-branded rewards credit cards. While they’re often highly specific cards, like for AARP members, regular Old Navy shoppers, or travelers who use Frontier Airlines, they do offer decent sign-up bonuses and rewards.
Invitation-only personal loans
Members of Barclays Bank have access to an invitation-only personal loan product. The details of the loan are great:
- No origination fees or prepayment penalties
- Borrow from $5,000 to $35,000
- Competitive interest rates
The problem? You can only get the loan if Barclays offers it to you—which isn’t usually how personal loans work. When you need cash, you don’t sit around waiting for a bank to hopefully offer you access to a loan; rather, you proactively research the best personal loans for which you’re eligible and apply for the right option.
Does Barclays have a checking account?
Barclays does not offer a checking account. This adds a slight hurdle to your money management. While you can connect your Barclays savings account to an external checking account, there may be some delays when transferring funds.
When you have both a checking and a savings account with the same bank, you can usually transfer funds instantly.
For instance, my favorite (and personal) bank is Capital One. I have multiple high-yield savings accounts through Capital One (to organize for various savings goals) and a linked checking account. I can move money around easily, both when I get paid by clients as a freelancer (from checking into the appropriate savings accounts) or when I need money for a big purchase (from the appropriate savings account to checking).
Not having a checking account with Barclays isn’t the end of the world, but it is enough to keep me from giving the financial institution full marks.
Pros and cons of Barclays Bank
There are a number of reasons to like Barclays as an option for your banking, but you’ll need to consider a number of potential drawbacks, too.
Pros
- High yields on both savings accounts: The Online Savings account offers a competitive APY while savers with a large enough deposit can earn even more with a Tiered Savings account.
- Sign-up bonus for Tiered Savings: While it can be challenging to earn, you can potentially earn a $200 bonus when you open a new account.
- FDIC insurance: Deposits are insured up to $250,000.
- Easy connection with external banks: Being able to connect your savings to an external checking account is crucial because Barclays doesn’t offer its own checking account.
- Rewards credit cards for various purchase lifestyles: Barclays has a wide range of rewards credit cards that might be relevant for frequent travelers or consumers of specific brands.
- Sign-up bonuses on credit cards: Each of the cards offers some kind of bonus offer to make them more attractive.
- Easy-to-use online platform: You’ll do all your banking online with Barclays; customer reviews highlight its ease of use.
Cons
- Large deposit required for highest APY: While the highest tier APY is attractive, you’ll need at least $250,000 in savings to earn that rate. Other high-yield savings accounts with competitor banks offer similar rates without a balance requirement.
- No checking account: Perhaps the biggest drawback with Barclays is the lack of a checking account, which can add a roadblock to everyday banking, especially if you want to withdraw cash or regularly need to move money from savings to fund purchases.
- No branches or ATMs in the US: Barclays is a U.K.-based bank, but customers can access online banking products in the U.S. However, there aren’t physical branches in the U.S., and with no checking account, there are also no ATMs—odd given that Barclays was the first bank to introduce an ATM.
Barclays vs. other banks
Barclays is a decent online bank, and for customers who are specifically focused on high-yield savings, it’s one of the top contenders. In fact, we named it one of the best high-yield savings accounts this year, highlighting it for its institutional history (much longer than the history of most other online banks).
However, Barclays falls short as a full-suite bank because it lacks a checking account.
Who is Barclays best for?
Barclays is a good online bank. While I feel like there are better options available, I know my financial situation is not the same as everyone else’s. Here are some scenarios in which Barclays Bank might be one of the best banking options for you:
✅ You’re conservative with your money—and have a lot of it
To access the highest APY that Barclay offers, you need to keep at least $250,000 in savings. Most financial advisors would tell you that’s way too much cash, and you should invest in real estate, mutual funds, or something else with a high return.
But if you would rather play it safe and still earn a respectable return, the 4.00% APY from Barclay’s highest level of the Tiered Savings account is a good choice.
Plus, the money is far more liquid than it would be in stocks or a retirement account. This could be a good option if you’re saving up for a large, all-cash purchase, like a home, boat, or luxury vehicle.
✅ You’re a credit card power user
I have three credit cards in my wallet, and they serve me well. But I also have friends and colleagues who are avid credit card users, collecting a wide range to maximize points and cash back.
If you like some of the brands with which Barclays partners for credit cards—General Motors, Wyndham, JetBlue, and Xbox, to name a few—it’s worth looking into their credit cards to use on top of your tried and trusted plastic.
And if you’re going to open a credit card with Barclays, it’s at least worth considering a savings account with the online bank, too.
✅ You trust brands with a long history
There’s no doubt: Online banks are a better option than traditional big banks, at least in terms of higher yields and lower rates. For instance, some of the largest traditional banks in the U.S. pay out a measly 0.01% APY on savings (I’m looking at you, Chase and Wells Fargo …) while online banks are usually above 3.00%.
But online banks are also relatively new, in the grand scheme of things. Many of the bank accounts are offered through financial technology companies (fintechs), rather than true banks, and while they’ve made great strides in security and are regulated by the U.S. government, some Americans still don’t trust these tech-forward online options.
That’s where Barclays comes in. Barclays offers convenient online-only banking—with the high APYs and low fees online banks are known for—but it’s a bank with history. The bank dates back to 1690 and has built trust over centuries. With Barclays, you get high returns and high reliability—and you shouldn’t discount that.
Is Barclays legit?
Barclays is a legitimate online-only bank in the United States; the company is headquartered in the United Kingdom, where it has actual branches and ATMs and offers an even fuller suite of banking products and services.
Barclays has been around for more than 300 years and is FDIC insured in the United States. The bank is accredited with the Better Business Bureau and has an A+ rating.
It is worth noting that customer reviews are hit or miss. For instance, Barclays has a subpar rating on Trustpilot.
Barclays Bank review: Great savings offerings, but no checking
From a banking perspective, Barclays has some great features—and one clear miss. The savings accounts are among the best, though the steep deposit requirements to achieve the highest APY feel a little unreasonable for most customers. The lack of a checking account is its biggest downfall.
Barclays partners with a plethora of brands for highly specific credit cards. While most of the cards probably aren’t a good fit for you, there’s bound to be one or two that might match your needs.
FAQs
Can you use Barclays in the U.S.?
Yes, you can use Barclays in the U.S. U.S. customers can open savings accounts and CDs with Barclays, as well as apply for credit cards. Barclays also offers invitation-only personal loans to its American customers.
Is Barclays FDIC-insured?
Yes, Barclays deposit accounts carry FDIC insurance up to $250,000. However, Barclays incentivizes keeping more than $250,000 in your account.
How safe is my money with Barclays?
Your money is very safe with Barclays. The bank offers a number of online security features and insures your funds through the FDIC up to $250,000.
3.50% Online Savingsⓘ
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
- Barclays Bank, Home, Refer to product pages throughout US website for more info
- Barclays, Our History
- SoFi, SoFi Checking and Savings
- FDIC, National Rates and Rate Caps
- Wells Fargo, Way2Save Interest Rates
- Chase, Chase Savings Interest Rates
- Chase, Our Most Popular Rewards Cards
- Capital One, Bank Accounts
- Capital One, Credit Cards
- Better Business Bureau, Barclays Bank Delaware
- Trustpilot, Barclays Bank
- J.D. Power, Direct Banks Continue to Satisfy Customers by Supporting Them in Challenging Economic Times, J.D. Power Finds
Related articles
About our contributors
-
Written by Timothy Moore, CFEI®Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget.
-
Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.