Barclays Bank has a long history, one that spans centuries. The online bank offers very competitive rates and low fees. What this bank offers is unique in the market. While the bank is well established, what they offer in the US is still evolving.
In this article, we will be taking a closer look at everything that this bank has to offer to help you understand if it’s the right choice for you.
What is Barclays Bank?
Barclays Bank is a universal bank with headquarters in London, UK. Founded in 1690, they have many firsts under its belt, including the deployment of the world’s first ATM and the appointment of the UK’s first female manager.
It is the 17th largest bank globally, with total assets reaching $1.928 trillion GBP in June 2022.
In the US, their official name is Barclays Bank Delaware. It’s also important to note that operations are restricted to online-only, effectively making Barclays an online bank in the U.S.
Barclays Bank Products
In the US, Barclays only offers two accounts – an Online Savings account and Online CD account.
There are no checking accounts, Money Market Accounts (MMAs), debit cards, or any other type of account for that matter. Your choices are going to be limited right off the bat.
Barclays Tiered Savings Account
There is one savings account available called Barclays Tiered Savings Account.
It is a tiered high-yield savings account — the higher your balance, the higher your APY. You’ll need $250,000+ to receive the highest APY.
The current tiered APY amounts are:
| Balance | Savings APY |
|---|---|
| $0 – $249,999.99 | 4.50% |
| $250,000+ | 4.80% |
Features:
It comes with many of the standard features that you would expect with any savings account.
- Secure online access to your funds
- The ability to transfer funds from other banks
- Direct deposit
- No monthly maintenance fees
- No minimum balance to open
The account also includes tools to help you save money, including a Savings Assistant that can help you set targets and then plan how to reach them.
Fees:
While the account does not have many fees, its fees are pretty low in comparison:
- NSF (Non-Sufficient Funds): $5 per item
- Cashier’s Check Fee: $5
- Returned Deposit Items: $5 per item
- Paper Statement Copy: $0.50 per statement
- Express Mail/Rush Delivery Charge: $25
You also have the option of choosing between a single or a joint account, which you can easily do during the sign-up process.
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Barclays Online CDs
Online CDs (Certificates of Deposit) follow the same basic recipe used for the savings account. There’s an Online CD with CD terms starting at three months and maxing out at 60 months.
There are no hidden fees or minimum balance that you must maintain, and no minimum opening deposit.
Interest compounds daily, so you’ll get the best use of the APY (Annual Percentage Yield) rate on offer.
You may also choose to have the interest earned deposited to another account.
However, this will limit how much money you earn from your CD. Withdrawing the principal before the maturity date may also incur an early withdrawal penalty.
| Product | APY | Min Deposit |
|---|---|---|
| Barclays Bank 1 Year CD | 4.25% APY | $0 |
| Barclays Bank 6 Month CD | 4.00% APY | $0 |
| Barclays Bank 9 Month CD | 4.00% APY | $0 |
| Barclays Bank 18 Month CD | 3.25% APY | $0 |
| Barclays Bank 5 Year CD | 3.25% APY | $0 |
| Barclays Bank 2 Year CD | 3.00% APY | $0 |
| Barclays Bank 3 Year CD | 3.00% APY | $0 |
| Barclays Bank 4 Year CD | 3.00% APY | $0 |
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Barclays Credit Cards
Barclays has many credit cards on offer – there are 28 different cards on offer by different issuers, including Visa and Mastercard.
To narrow down the choices, you can sort them by lifestyle, with six options available here:
- Travel
- Retail
- Entertainment
- Everyday
- Cashback
- Business Expenses
While this might sound like a lot, it does ensure that you can choose a card that truly fits your lifestyle.
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Barclays Personal Loans
Barclays is currently trialing personal loans. At the moment, these are being offered via invitation only. As such, unless you have to receive a personal invitation from the bank to apply.
Should the trial be successful, we can expect to see Barclays rolling this out to all of its customers.
It’s difficult to tell what the final product will look like, as this is being trialed. In all probability, the bank uses the current trials to gather feedback from customers and internal feedback. The provided feedback will then determine what the bank ends up offering.
Barclays also used to offer an account for minors and a Dream Account that offered bonuses for savings.
The bank stopped offering both of these accounts in 2017 with no word whether it will start offering them again in the future.
Fees
Both Online Savings and Online CDs have no monthly maintenance fees, helping you keep your costs low.
Equally, there are no minimum balance requirements and no minimum deposit amounts – regardless of whether you’re opening a savings or CD account.
Credit Cards come with different fees, depending on the card. Annual fees vary between $0 and $499 – a big difference that shows just how varied the selection of cards on offer is.
Similarly, the APR will vary depending on the card you choose as well as your creditworthiness.
Getting Started
Signing up and getting started with Barclays is relatively straightforward. You can complete the entire process online, with different processes available depending on whether you’re applying for an account or a card.
Barclays lays everything on one page, unlike many other banks that break the sign-up process into several steps. While this might make it seem that they’re asking for a lot more information, in reality, they are not.
It also allows you to quickly see all of the information that the bank will need from you to complete the process. The process makes it easier to ensure you have all of the required information at hand to complete the sign-up process in one sitting.
Even so, you can still save the application and continue the process later should you encounter any interruptions.
Information You’ll Need
As mentioned before, Barclays does not require any information over and above what other banks ask for typically.
As such, you will need information such as:
- Name
- address
- SSN (Social Security Number)
- DOB (Date of Birth)
- Country of Citizenship
- Email Adress
- Phone Number
- Information on which account you wish to open
- Information on the funding account
There is no minimum opening deposit requirement. However, if you don’t fund your account within 14 days from opening, the bank may decide to close your account.
Promotions
Here are some of the best Barclays Bank promotions going on right now:
1. Barclays Tiered Savings - $200 bonus
Expires: January 6, 2025
Available nationwide, Barclays is offering a $200 bonus to new customers when you open a new Tiered Saving account and deposit $25,000. To qualify for this offer, you must be a new Barclays Savings customer (current and previous Barclays customers with a Savings account or CD are not eligible). Terms Apply.
How to earn the bonus
The Barclays Tiered Savings sign up offer requires you to deposit and maintain a minimum balance in order to earn the $200 bonus. Full requirements to receive this bonus are:
- Must be a new Barclays banking customer and open a Tiered Savings account.
- Within 30 days, deposit at least $25,000 in new funds.
- For 120 consecutive days maintain at least a $25,000 balance.
- After the $25,000 balance is maintained for 120 consecutive days, the $200 bonus will be added directly to the account within 60 days.
Apply now to earn the $200 bonus from Barclays
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Security
When it comes to security, Barclays takes things seriously. You can find lots of information on the bank’s website, including the detailed steps it takes to ensure your information is protected.
Furthermore, you’ll find advice on ensuring you stay safe when using online banking to manage your money.
Barclays uses SSL/TLS with 128-bit encryption for browser communication. With TLS being the latest standard in-browser data encryption, this is always nice to see.
They also use state-of-the-art equipment, including firewalls, to ensure no unauthorized data access takes place.
Of course, no system is 100% foolproof, which is why vital that we as customers remain ever so vigilant. The constant threats we all face when online are why the bank’s solid advice is good to read and practice.
Customer Service
When it comes to customer service and support, you’ll find a few different options at your disposal.
Firstly, there is an FAQ section that answers quite a few additional questions. It’s easy to locate right from Barclay’s website and will provide you with quick answers.
Depending on where you’re calling from, the bank has two toll-free numbers – one domestic and one international.
- Domestic Toll-Free: 1-888-710-8756
- International Toll-Free: 1-701-719-1515
Lines are operated from 8:00 AM until 8:00 PM from Monday through to Sunday.
Pros & Cons
Like every other bank, Barclays is not going to be the perfect fit for everyone. Understanding if this bank is the right choice for you helps to look at its pros and cons.
Doing so can help you understand whether you’re ok with giving up what the bank does not offer and whether what it does offer meets your expectations.
Pros:
- FDIC insurance. Accounts are insured by the FDIC up to $250,000 per category. As such, your money is always safe.
- No fees. Accounts have low or no fees, making Barclays bank quite affordable for account holders from different socioeconomic backgrounds.
Cons:
- Low CD Rates. CD rates are not the highest, maxing out at 0.25%. Savers looking to maximize the return they expect to make might find better deals elsewhere.
- Limited selection. With a limited selection of financial products and financial services, Barclays may not offer everything you need.
Alternatives to Barclays Bank
With Barclays Bank being both a traditional bank and an online bank, there are many alternatives. The alternative that will be more suitable for you will largely depend on your financial needs and requirements.
To ensure you make the right choice, make a list of what you need and what are nice to have. If Barclays does not fulfill your absolute needs at a minimum, consider any of the following alternatives, which might be a better fit for you.
Marcus by Goldman Sachs
Marcus by Goldman Sachs is probably the closest match. Goldman Sachs has a long history that rivals Barclays and equally enjoys the heritage that Barclays have.
Marcus is the online bank arm of Goldman Sachs that offers a similar range of products and services with a few key differences.
Capital One
Capital One is another great alternative to consider, offering a much more extensive range of products and services than Barclays and Marcus.
Here you’ll find several checking and savings accounts, as well as credit cards and car loans.
Capital One also has several branches and cafes – an excellent addition to have if you value face-to-face interactions.
Frequently Asked Questions
Is Barclays Bank safe?
Barclays Bank is one of the oldest banks globally. It has a long history of weathering down storms over the centuries it has been in business. Even so, there have been some controversies over the years. However, with FDIC insurance offered on all accounts, your money is safe – and so is the bank.
What is Barclays Bank known for?
As Barclays is a universal bank, they are known for different things in different places.
The bank is mainly known for its credit cards in the US, with a large selection on offer.
It’s important to remember they also offer corporate and investment banking and do business worldwide in different formats and capacities.
Is Barclays Bank FDIC insured?
Yes, Barclays Bank is insured by the FDIC up to the allowable limits set at $250,000 per depositor for each category.
Is Barclays Bank Best for You?
Barclays Bank can be a good fit for people looking for a bank that helps them manage their personal finances. The high-interest rate on their savings account makes it a good emergency fund option.
Barclays Bank also has a large selection of credit cards, more extensive than most other banks offer. As such, they are worth a look if you’re trying to maximize the amount of cash back or points you earn – depending on your particular situation.
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