Barclays Increases Rate of Online Savings Account

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Deal Summary: Online Savings Account (2.20% APY); no minimum balance.

Availability: Nationwide (internet bank)

This morning Barclays raised its Online Savings Account rate by 15 bps. The new rate is now 2.20% APY for all balances. It has been about two months since Barclays’ last savings account rate hike.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.20%--BarclaysOnline Savings Account
Rates as of January 22, 2019.

This move by Barclays matches Synchrony Bank’s move yesterday. Both now offer a no-minimum savings account with a 2.20% APY. This is the new high range for the large and well-established online banks. It shouldn’t be long before all of the well-established online banks have increased their savings account rates to this level.

You can see below how Barclays Online Savings Account recent rate history compares to the other large internet banks since the last two Fed rate hikes. Since the September Fed rate hike, Barclays Online Savings Account APY has increased from 1.85% to 2.20% in three rate increases.

  • Dec 27: Barclays Online Savings: 2.20% APY
  • Dec 25: Synchrony High Yield Savings: 2.20% APY
  • Dec 20: American Express National Bank Personal Savings: 2.10% APY
  • Dec 19: Federal Reserve Target Funds Rate: 2.25% to 2.50%
  • Dec 13: FNBO Direct Online Savings: 2.15% APY
  • Dec 5: MySavingsDirect MySavings: 2.40% APY
  • Nov 15: Ally Bank Online Savings: 2.00% APY
  • Nov 15: American Express National Bank Personal Savings: 2.00% APY
  • Nov 14: MySavingsDirect MySavings: 2.35% APY
  • Nov 14: Discover Bank Online Savings: 2.00% APY
  • Nov 9: Capital One 360 Money Market: 2.00% APY, $10k+
  • Nov 6: Synchrony High Yield Savings: 2.05% APY
  • Oct 30: Barclays Online Savings: 2.05% APY
  • Oct 26: Goldman Sachs Bank USA High-yield Savings: 2.05% APY
  • Oct 19: FNBO Direct Online Savings: 2.00% APY
  • Oct 11: Discover Bank Online Savings: 1.90% APY
  • Oct 3: Discover Bank Online Savings: 1.85% APY
  • Oct 2: Synchrony High Yield Savings: 1.90% APY
  • Oct 12: Goldman Sachs Bank USA High-yield Savings: 1.95% APY
  • Oct 5: Ally Bank Online Savings: 1.90% APY
  • Sep 27: American Express National Bank Personal Savings: 1.90% APY
  • Sep 27: Barclays Online Savings: 1.90% APY
  • Sep 26: Federal Reserve Target Funds Rate: 2.00% to 2.25%

Barclays has a long history of maintaining a competitive rate on its Online Savings Account. Barclays launched the Online Savings Account in 2012 during the depths of the zero interest rate years. At launch, the APY was 1.00%. Only once has Barclays lowered the rate. That was in 2013 when the APY fell to 0.90%. The APY returned to 1.00% in December 2014 and held steady until May 2017 when Barclays started to respond to the Fed rate hikes. As can be seen with the above rates hikes, Barclays is still intent on remaining competitive.

Thanks to the DA reader, buckeye61, for mentioning the rate hike in the DA forum.

Barclays Online Savings Account Features

Barclays Online Savings Account has several nice features such as no minimum balance requirement and no monthly fees. Below is a copy of my Barclays savings account review from last year that bears repeating.

  • The funding account link is maintained for future transfers so you don't need to re-verify the account after the account is opened
  • They allow up to 3 external account links per owner
  • After the account is opened, ACH transfers are limited to $250,000 per transaction. If you have a larger amount to transfer, they can process the transfer if you call.
  • Maximum balance allowed per social security number is $5 million
  • They allow up to 4 beneficiaries per account.
  • They do not allow accounts in the name of a trust. However, trusts can be named as a beneficiary.

Barclays Online CDs

Barclays didn’t change any of its CD rates today. The last CD rate hikes occurred on December 3rd. The two most competitive CDs continue to be the 12-month and 60-month, but even they lag the rate leaders by quite a bit.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.10%--Barclays60 Month Online CD
2.65%--Barclays12 Month Online CD
Rates as of January 22, 2019.

Barclays CDs do have many nice features including a mild early withdrawal penalty (90 days of interest for up to and including 24-month term and 180 days of interest for terms above 24 months.) Please refer to this blog post for more CD details.

Beneficiary Requirement Change

I mentioned this change before, but it bears repeating. To designate beneficiaries, social security numbers are now required. When I reported on Barclays’ CDs four years ago, social security numbers were not required for the beneficiaries. When you’re logged into Barclays online banking, there’s an option that allows you designate and change your beneficiaries. There’s now a required field for the beneficiary’s social security number.

Availability

Barclays is an internet-only bank that is headquartered in Wilmington, Delaware. According to Barclays’ terms and conditions, “To open an account with us, you must be at least 18 years old, a U.S. citizen or a resident alien with a valid Social Security Number or other Taxpayer Identification Number, and have a residential address in the United States.” Opening an account, including CDs and Savings, must be done online.

Bank Overview

The Barclays internet bank is part of Barclays Bank Delaware which is a FDIC member (FDIC Certificate # 57203). The bank is best known in the U.S. for partnering with companies in offering co-branded credit cards. It's part of the U.S. division of Barclays PLC, a British multinational megabank.

Barclays Bank Delaware has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.17% (excellent), based on September 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $1.68 billion, an excellent annual growth rate of 11.32%. Please refer to our financial overview of Barclays Bank Delaware (FDIC Certificate # 57203) for more details.

How the Online Savings Account Compares

When compared to the 211 Savings Accounts and 183 Money Market Accounts tracked by DepositAccounts.com that are available nationally and have no large minimum requirements or small maximum balances, eight savings accounts and five money market accounts have higher rates.

Interest RateAccount NameCredit Union/Bank
2.50% APYHigh Yield Statement Savings ($5k min/$1m max)EBSB Direct
2.40% APYMySavings Account (no min/no max)MySavingsDirect
2.39% APYCIBC Agility Savings ($1k min to open/$1m max)CIBC USA
2.20% APYOnline Savings Account (no min/no max)Barclays

The above rates are accurate as of 12/27/2018.

To find the highest Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table.

Related Pages: Philadelphia savings accounts, savings accounts, nationwide deals, Internet banks

Comments
Matt83
Matt83   |     |   Comment #1
Good savings rate. They need to move more on their CD rates couple years ago they were really competitive and even market leaders but they like Ally have completely fallen off the map. At least as of late Ally is making a strong attempt to be competitive again.
KJF
KJF   |     |   Comment #2
Well good but get online customer service and allow accrued interest on a CD to be transferred online......then we'll talk.
Cmb
Cmb   |     |   Comment #3
Have small amount in Barclays, thinking about moving some from ally. .20 difference
Barclays Hikes Online Savings Account Rate
Deal Summary: Online Savings Account (2.05% APY); no minimum balance.

Availability: Nationwide (internet bank)

This morning Barclays raised its Online Savings Account rate by 15 bps. The new rate is now 2.05% APY for all balances. It has been just over a month since Barclays’ last savings account rate hike.

Barclays joins Goldman Sachs Bank USA with a no-minimum online savings account that earns 2.05% APY. This is the new high range for the large and well-established online banks. It shouldn’t be long before all of the well-established...

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Barclays Increases Rates of Online Savings Account and CDs
Deal Summary: Online Savings Account, 1.90% APY, no minimum balance. CD rate increases, noteworthy rates: 12-Month (2.55% APY) and 60-Month (3.10% APY).

Availability: Nationwide (internet bank)

Barclays responded yesterday to the Wednesday Fed rate hike with an increase on its Online Savings Account rate and with rate increases on six of its Online CDs. The Online Savings Account rate increased 5 bps, and the CD rates increased by 10 bps. The new APYs are shown below in bold and are effective as of 9/27/2018. The previous APYs are noted...

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Barclays Online Savings APY Raised
Deal Summary: Online Savings Account, 1.85% APY, no minimum balance.

Availability: Nationwide (internet bank)

Barclays has started the new month by increasing its Online Savings Account rate to 1.85% APY.

Last June, the Online Savings rate was raised to 1.75% APY. Prior to the May rate hike (1.65% APY), the Online Savings was lagging slightly in the rates race. In January, Barclays had raised the rate twice, and after the second rate hike, the Online Savings at the high-end for online savings accounts; that 1.50% APY held...

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Barclays Increases Rates on Four Online CDs

Deal Summary: Rate increases on 1-year, 18-month, 2-year and 5-year CDs. Most competitive CDs are the 1-year (2.40% APY) and 5-year (3.00% APY).

Availability: Nationwide

Barclays raised the rates of four of its Online CDs on Saturday. The 1-year and 5-year CD rates increased by 15 basis points while the 18-month increased by 10 basis points and the 2-year increased by 5 basis points. The Barclays 5-year CD APY has finally reached 3%. The new CD APYs are shown below in bold and are effective as of 7/14/2018. The previous...

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Barclays Raises Online Savings Account Rate
Deal Summary: Online Savings Account (1.75% APY); no minimum balance.

Availability: Nationwide (internet bank)

This morning Barclays raised its Online Savings Account rate by 10 bps. The new rate is now 1.75% APY. It has been just over a month since Barclays’ last savings account rate hike. Before its May rate hike, Barclays had fallen behind a little in the rate race. In January, Barclays raised the rate twice, and after the second rate hike, the savings account was on the high-end for online savings accounts. The rate then...

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