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 online banks have increased their savings account rates above 2%.
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 2.05% in two rate increases.
- Oct 30: Barclays Online Savings: 2.05% APY
- Oct 29: Citizens Access Online Savings: 2.25% APY, $5k+
- Oct 26: Goldman Sachs Bank USA High-yield Savings: 2.05% APY
- Oct 19: FNBO Direct Online Savings: 2.00% APY
- Oct 18: Sallie Mae Bank Money Market: 2.12% APY
- Oct 15: CIBC Agility Savings: 2.16% APY
- Oct 12: Vio Bank High Yield Online Savings: 2.15% 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: Sallie Mae Bank Money Market: 2.00% APY
- Oct 5: Ally Bank Online Savings: 1.90% APY
- Sep 28: Citizens Access Online Savings: 2.12% APY, $5k+
- Sep 27: American Express National Bank High Yield Savings: 1.90% APY
- Sep 27: Barclays Online Savings: 1.90% APY
- Sep 26: Federal Reserve Target Funds Rate: 2.00% to 2.25%
- Sep 19: Goldman Sachs Bank USA High-yield Savings: 1.90% APY
- Sep 19: Vio Bank High Yield Online Savings: 2.11% APY
- Sep 10: HSBC Direct Savings: 2.01% APY
- Sep 7: CIBC Agility Savings: 2.10% APY
- Sep 5: MySavingsDirect MySavings: 2.25% APY
- Aug 31: Ally Bank Online Savings: 1.85% APY
- Aug 31: Discover Bank Online Savings: 1.80% APY
- Aug 24: Capital One 360 Money Market: 1.85% APY, $10k+
- Aug 23: American Express National Bank High Yield Savings: 1.80% APY
- Aug 10: Vio Bank High YIeld Online Savings: 2.10% APY
- Aug 9: Goldman Sachs Bank USA High-yield Savings: 1.85% APY
- Aug 3: Ally Bank Online Savings: 1.80% APY
- Aug 2: FNBO Direct Online Savings: 1.85% APY
- Aug 1: Barclays Online Savings: 1.85% APY
- July 24: Synchrony High Yield Savings: 1.85% APY
- July 18: HSBC Direct Savings: 1.80% APY
- July 10: Capital One 360 Money Market: 1.75% APY, $10k+
- July 9: Citizens Access Online Savings: 2.00% APY, $5k+
- July 6: Discover Bank Online Savings: 1.75% APY
- July 2: Sallie Mae Bank Money Market: 1.90% APY
- June 29: Ally Bank Online Savings: 1.75% APY
- June 27: Barclays Online Savings: 1.75% APY
- June 25: CIBC Agility Savings: 1.90% APY
- June 22: Goldman Sachs Bank USA High-yield Savings: 1.80% APY
- June 22: American Express National Bank High Yield Savings: 1.75% APY
- June 15: Discover Bank Online Savings: 1.65% APY
- June 13: Federal Reserve Target Funds Rate: 1.75% to 2.00%
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. This latest rate hike shows that Barclays is 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 September 28 (the day after the Fed rate hike). The two most competitive CDs continue to be the 12-month and 60-month.
|3.10%||-||-||Barclays||60 Month Online CD|
|2.55%||-||-||Barclays||12 Month Online CD|
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.
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.
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 5.96% (excellent), based on June 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $2.31 billion, an excellent annual growth rate of 16.84%. 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 220 Savings Accounts and 193 Money Market Accounts tracked by DepositAccounts.com that are available nationally and have no large minimum requirements or small maximum balances, six savings accounts and two money market accounts have higher rates.
|Interest Rate||Account Name||Credit Union/Bank|
|2.25% APY||MySavings Account (no min/no max)||MySavingsDirect|
|2.25% APY||Online Platinum Savings - New Money (no min/$100k max)||Northfield Bank|
|2.16% APY||CIBC Agility Savings ($1k min to open/$1m max)||CIBC USA|
|2.05% APY||Online Savings Account (no min/no max)||Barclays|
The above rates are accurate as of 10/30/2018.