Banking Savings & Money Market Accounts

Barclays Online Savings Review [2024]: High APY, but No ATM Access

Barclays Online Savings is a top contender for savers seeking a high APY and a user-friendly digital experience. However, the lack of physical cash deposit options may be a dealbreaker for those who frequently deal with cash.

Updated June 13, 2024
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Barclays Online Savings

OUR VIEW

Like many people, I'm always on the hunt for the best place to stash my savings and grow my money faster. For a while now, the Barclays Online Savings account has been catching my eye with its high 4.35% APY.1 That's over nine times higher than the 0.45% (as of June 12, 2024) APY offered by a traditional brick-and-mortar bank.

In this review, I'll give you my take on the account experience, the online banking platform, and, most importantly – whether that APY is really as great as it seems. Spoiler alert: It delivers on the high-interest promises, but there are some trade-offs, such as no physical branches and limited options for depositing cash to consider, too.

Pros

High 4.35% APY to earn more interest than traditional savings accounts
No minimum deposit required to open account
No monthly maintenance fees
FDIC insured up to $250,000

Cons

No physical branch locations
No ATM access
$5 excess withdrawal fee after 6 per monthly statement cycle
How we evaluate products

Barclays Online Savings basics

APY 4.35%2
Minimum balance to earn APY Maintain a minimum balance that will earn at least 1 cent interest
Minimum deposit to open account None
Monthly maintenance fees None
ATM access No
Transactions per month Up to 6 transfers/withdrawals
FDIC insured Yes

What we like about Barclays Online Savings

  • High 4.35% APY: Barclays offers a competitive interest rate that blows traditional banks out of the water. This high yield means your money will grow faster without any extra effort on your part. While some banks offer higher interest rates, they often have minimum balance requirements or require direct deposits. Barclays makes it easier by offering 4.35% APY with no strings attached.
  • User-friendly online and mobile app experience: Managing your savings is easy with Barclays' intuitive online interface and mobile app. You can check your balance, make transfers, and deposit checks right from your phone. Unfortunately, the app doesn’t provide a live chat feature, but you can send a secure message if you have a question about your account via the desktop site.
  • No minimum balance or direct deposit requirements: Some banks make you jump through hoops to avoid fees, but not Barclays. You can open an account with as little as $1 and you don't need to set up direct deposit either, which makes it perfect for savers of all levels.
  • No monthly maintenance fee: No maintenance fees are pretty typical for high-yield online savings accounts. For me, this is one of the most important features since these fees can quickly wipe out interest earnings.
  • FDIC insurance of up to $250,000 per depositor: With FDIC coverage, you have peace of mind knowing your hard-earned savings are protected even if the bank runs into trouble. It's a must-have in my book.
  • Links easily to external bank accounts for transfers: Barclays makes it simple to link your other bank accounts for seamless transfers. You can even set up automatic transfers to boost your savings without thinking about it.

Tip
Barclays also offers several other financial products, so if you find their savings account a good fit, you might also investigate their credit cards and CDs (certificates of deposit).

What Barclays Savings could improve

  • No option to deposit cash without visiting another bank: If you deal with a lot of physical cash, Barclays isn’t a convenient choice since you can't deposit it directly. You'll need to put it in another bank account first and then transfer it over. It's an extra step that could be a pain if you make frequent cash deposits or want to keep your money in one place.
  • $5 excess withdrawal fee after 6 transactions per cycle: This is likely not a deal-breaker, especially since this account has low fees compared to other accounts, but the fee for surpassing six withdrawals during a statement cycle is $5 per transaction.

    Most savings accounts are limited by federal regulation to six withdrawals each month, whether or not they charge account holders for overages. If you expect to make a lot of withdrawals, you may want to consider a checking account instead.
  • No live chat option, and customer support isn't available 24/7: If you have a late-night banking emergency, you'll have to wait until morning to get help from Barclays. Their customer service is only available on weekdays from 8 AM to 8 PM Eastern. It's not the end of the world, but many banks offer live chat and/or longer hours.
  • $5 million maximum balance across all Barclays accounts: Big savers might hit a snag with Barclays' $5 million total balance limit across all accounts. It's probably not an issue for most people, but it’s good to be aware that you’ll need to look elsewhere if you reach that threshold.

Who should open a Barclays Online Savings account?

The Barclays Online Savings account is a great high-yield savings option for anyone who:

  • Wants to earn significantly more interest than a typical savings account
  • Is comfortable banking online or through a mobile app
  • Doesn't need to make frequent withdrawals or cash deposits
  • Prioritizes low fees and no minimum balance requirements

Keep in mind
If you want or need branch or ATM access for cash deposits and withdrawals, this account won't be a good fit. You'd be better served by a high-yield savings account like the Citi® Accelerate High-Yield Savings, which has physical locations as well as online access.

Withdrawing money from a Barclays Online Savings account

Since there are no branches or ATMs, the only way to withdraw money from your Barclays Online Savings account is by electronic transfer to an external bank or by requesting a mailed check.

Transferring to an outside bank can be done online or through the app with just a few clicks. You can schedule one-time or recurring transfers at any frequency. The money typically takes 2-3 business days to move between accounts.

If you prefer, you can request that Barclays mail a check directly to you. I've read reports of users saying their checks arrived via standard mail in 5-7 business days.

Other account fees

Overdraft fee $5 per item
Stop payment fee $0
ACH transfers $0 (up to 6 transfers, then $5 each thereafter)
Incoming wire Not accepted
Outgoing wire Not accepted

Barclays Online Savings customer service

You can always check your balance or initiate a transfer yourself by logging in to your online banking account or using the Barclays US app, which is available for both iPhone and Android devices. You can also call 1-888-710-8756 for support, Monday through Friday, 8 a.m.to 8 p.m. Eastern.

If you have a quick question, you can also contact Barclays customer service via social media. You can tweet @AskBarclaysUS, but make sure you don’t include any private information like your account number, as your tweet will be publicly viewable.

Barclays also accepts mail correspondence, which might be best for logging a formal complaint or dispute. Its address is:

Barclays
P.O. Box 2460
Cranberry Twp., PA 16066

Alternatives to Barclays Online Savings account

While Barclays offers a competitive APY, there are other accounts that come with similar features and benefits and offer even higher APYs:

High Yield Savings Account from Customers Bank

The High Yield Savings Account from Customers Bank outperforms many of its competitors with a 4.76% APY3. That’s higher than Barclays, and it has no monthly maintenance fees and only requires a $1 minimum deposit.

It also has physical locations in a few states. This is a better option if you prefer a bank you can visit and live near one of Customer Bank’s branches.

Visit Customers Bank

SoFi Checking and Savings

SoFi provides both a savings account and a checking account with its offer, so it’s ideal if you need both. You can earn up to 4.60% APY on savings with qualifying direct deposits.

There’s no minimum balance requirement, and you don’t have to worry about monthly maintenance or overdraft fees. It’s another online-only option, but it comes with features like early paycheck access.4

Visit Sofi or learn more in our SoFi Checking and Savings review.

FAQs

Is Barclays Online Savings safe?

Yes. All Barclays Online Savings accounts are FDIC-insured, and Barclays employs several security measures to prevent unauthorized access to your online account. 

These security measures include encrypting your information, a built-in timer that will log you out if you haven’t been active on the website for a while, and a digital certification that ensures the browser you are communicating with is Barclays and not a fraudulent duplicate.

Can you have two savings accounts with Barclays?

Yes, you can. And it can be a very good idea to have more than one savings account

However, be aware that having multiple accounts, whether or not they are at the same financial institution, may affect the amount of FDIC insurance coverage you’ll get. Barclays also only allows a maximum total balance of $5 million across your accounts.

Do you get a card with a Barclays savings account?

No. There is no ATM access available with the Barclays Online Savings account, and you won’t receive a card connected to your account. 

If it's important to you to be able to do cash deposits or access branch locations, then a Barclays account won't be ideal for you.

Should I open a Barclays Online Savings account?

If you’re looking for savings accounts with high interest rates, few fees to worry about, and no minimum deposit, the Barclays Online Savings account is a great choice. 

When comparing this account to other savings account options, consider the ease of access, the availability of customer service, and any other features that are important to you.

For example, the Barclays Online Savings account will not be the best choice for someone who wants immediate access to their savings, especially if they prefer to use an ATM. 

Featured High Yield Savings Accounts

CloudBank 24/7 Savings - 5.22% APY5

High-yield savings account. $1 minimum deposit. FDIC insured. Limited Time Bonus: Earn up to $2,000 when you refer friends and family to Raisin. Visit site to learn more.

Open Account
SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit

Earn 4.60% APY6 and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.7 FDIC Insured.

Open Account
Barclays Online Savings - 4.35% APY1

High-yield savings account. No minimum balance.

Open Account

Bottom line

If earning a high interest rate is your top priority for an online savings account, Barclays Online Savings offers a solid 4.35% APY. While some banks offer even higher rates, they often come with deposit requirements or other hoops to jump through.

Combined with no monthly fees, easy online access, and the convenience of mobile apps, it’s a compelling choice for growing your long-term savings without fees eating into your earnings.

The biggest trade-off is the lack of branches or ATMs. As long as you're comfortable managing everything digitally and don't need to make frequent withdrawals or cash deposits, this account is a great choice.

High 4.35% APY to earn more interest than traditional savings accounts
No minimum deposit required to open account
No monthly maintenance fees
FDIC insured up to $250,000

Author Details

Gabriela Walsh

Gabriela Walsh is an Editor at FinanceBuzz, where she uses her keen eye for detail and draws upon her academic background in literary research to ensure our content remains both reliable and up-to-date. With an M.A. in Modern English Literature from University College London, Gabriela combines her understanding of language and literature with her commitment to delivering content that empowers others to build healthy money management skills.

Author Details

Lindsay Frankel

Lindsay Frankel is a Denver-based freelance writer who specializes in credit cards, travel, budgeting/saving, and shopping. She has been featured in several finance publications, including LendingTree. When she's not writing, you can find her enjoying the great outdoors, playing music, or cuddling with her rescue pup.