Barclays Hikes Online Savings Account Rate to 2.05% APY

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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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.05%--BarclaysOnline Savings Account
Rates as of November 17, 2018.

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.10%--Barclays60 Month Online CD
2.55%--Barclays12 Month Online CD
Rates as of November 17, 2018.

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 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 RateAccount NameCredit Union/Bank
2.25% APYMySavings Account (no min/no max)MySavingsDirect
2.25% APYOnline Platinum Savings - New Money (no min/$100k max)Northfield Bank
2.16% APYCIBC Agility Savings ($1k min to open/$1m max)CIBC USA
2.05% APYOnline Savings Account (no min/no max)Barclays

The above rates are accurate as of 10/30/2018.

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
buckeye61
buckeye61   |     |   Comment #1
This good to see! Hopefully we'll see Ally and Synchrony(And others) follow with 10-15 bps increases to reach the 2% club.
gregk
gregk   |     |   Comment #2
Except EBSB is offering 2.50%.

The mere "2% club" is "dead in the water" by comparison.
buckeye61
buckeye61   |     |   Comment #3
Based on the reviews of EBSB I'm not sure that premium would be worth the potential problems!
Mona
Mona   |     |   Comment #4
Good old Barclays - you don't have to beg to get the higher rate on existing account -- it seems they "up" it automatically for their customers. Not like Citbank which will leave you behind unless you make the first move and do some extra footwork. Thanks so much for this website it provides wealth of information.
Rance
Rance   |     |   Comment #5
Meh......pretty easy to get 2.25 at least now elsewhere......No impressed. Also you can't do any customer service online you have to call and wait. They are about a C- in my book.
Cmb
Cmb   |     |   Comment #6
Initial deposit has taken 5 business days so far and not showing up yet on account.
Cmb
Cmb   |     |   Comment #7
Called today, 11 days after opening. Never transfered my opening deposit. They have no idea why. Took 10 minutes to get through.
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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Barclays Raises Online Savings Account Rate
Deal Summary: Online Savings Account (1.65% 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 1.65% APY. It has been exactly four months since Barclays’ last savings account rate hike. The old 1.50% APY was pretty competitive back in January, but this rate had fallen behind the competition as several other internet banks have raised their savings account rates in the last few months. It was just over a year ago when Barclays...

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