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4.25%--Barclays60 Month Online CD
4.20%--Barclays48 Month Online CD
4.15%--Barclays36 Month Online CD
4.10%--Barclays24 Month Online CD
Rates as of November 30, 2022.

Barclays Officially Launches Its New Internet Bank


The U.S. credit card unit of Barclays is officially launching its new internet bank today. I first reported on the new internet bank when it started offering its savings account and CDs in March. The internet bank is intended to diversify Barclays funding for its credit card business. According to Reuters:

The card business currently gets roughly half of its funding from so-called brokered-deposits, which are generally considered less stable than deposits made by individuals. The other half of the funding comes from the subsidiary's London-based parent.

As I mentioned in my March review, the online accounts have some nice features. Rates are fairly competitive, but they're not anything to get excited about. The savings account APY is 1.00% for all balances as of 5/7/2012. The only two internet banks offering higher non-intro rates than this are TIAA Direct with a 1.25% APY and MyBankingDirect with a 1.15% APY.

Barclays online CDs have terms from 3 months to 60 months. Only its long-term CD rates are competitive. Below is the list of the most competitive rates as of 5/7/2012:

  • 1.75% APY 5-year CD
  • 1.60% APY 4-year CD
  • 1.40% APY 3-year CD
  • 1.15% APY 2-year CD

One nice feature of these CDs is a small early withdrawal penalty of only 90 days of interest. This is almost as small as Ally Bank's EWP of 60 days of interest. There is one downside as a reader noted in my last review. CD holders currently cannot receive interest disbursements. So they will have to let the interest get added back to the CD. These details are listed in Barclays FAQs.

I have more details on the savings account and CD features in my March Barclays online bank review.

Related Pages: Barclays, savings account, CD rates

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  |     |   Comment #1
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Barclays appears immature for online saving accounts. First, it asks for unreasonable personal information such as your mother's maiden name. Second, the web site failed opening my new account after numerous attempts for several hours. Return to existing application feature did not work and phone customer service was helpless either. I ended up with my very personal information locked somewhere in Barclays and wondering how secure it is.

  |     |   Comment #3
I've the same experience. Some kind of system error. Application aborted. I'm looking somewhere else which doesn't torture me like this site.

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