Barclays For Cd's? Any Good?

Listedguru | Jul 17, 2023 | 63 posts since 2022

Looking into CD options for my mother in law. Unfortunately my father in law passed away last year so it's just her. Just wondering if anyone here has any experience with Barclay's for CD's? I know they are a UK based institution but I guess Barclay's here in the US is based in Delaware and thus has full FDIC coverage.

Looking at their (5) year cd earning 4.5% as it checks the boxes for both term and the rate is good enough. Also like that the EWP is 180 days which isn't too bad should that need arise. Just want a set it and forget it type deal where the interest can be deposited monthly into an external account.

Any opinions and or experiences on Barclay's for CD"s and banking in general?

My MIL's current bank is trying to sell her an annuity which I am somewhat familiar with but have never had one. It's an Eagle Life Focus 5 MVA and from the little bit of research I did on it I wasn't impressed. I think a CD would work better overall for her situation.

Fire those comments away:)

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Answers

John19 | Jul 17, 2023 | 395 posts since 2022

I have some Barclay's 4.5% CDs. Good bank. It took a few days to open the account. but afterwards super easy to open the CDs.

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Markiepost | Jul 17, 2023 | 26 posts since 2023

Opened 4 and 5 year CD’s in March. No issues. They use small cent deposits method to verify your transfer account, took 3 days to fund the CD’s. No complaints.

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Listedguru | Jul 18, 2023 | 63 posts since 2022

Good to hear. Do you know if they any sort of lock in period for their cd rates after you open one online before you fund it? I know Ally will lock your rate for I think 10 days while you fund it. Just wondering if you know if Barclays does something similar. Even thought things are electronic it can still take a few days or more to move funds around for funding, etc.

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Markiepost | Jul 18, 2023 | 26 posts since 2023

As far as I know, Barclays does not offer the rate guarantee.

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thedailygrind | Jul 18, 2023 | 4 posts since 2023

I've been using Barclay's for years without any issues. You can do everything online (beneficiaries, ask questions). They have been responsive to me. They just went up to 4.5% on their 5 year. I am holding out for 5%. I hope I don't get burned.

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Listedguru | Jul 18, 2023 | 63 posts since 2022

Do you happen to know how many beneficiaries you can name on these Barclay's cd's? Hopefully it's possible to name three?

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thedailygrind | Jul 18, 2023 | 4 posts since 2023

You can name up to 5 beneficiaries. Can be people and/or charities. You will need SSN for people and TIN for charities.

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happyharold4 | Jul 18, 2023 | 388 posts since 2022

I feel very comfortable with Barclay. I also recently opened the 5 year at 4.50. I fully realize there are better deals but I'm satisfied with my decision. Great website and knowledgeable CSR's.

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txFish1 | Jul 18, 2023 | 476 posts since 2023

@happyharold4 Sometimes good service and peace of mind at a reputable FI is worth giving up a few basis points of interest.

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Markiepost | Jul 18, 2023 | 26 posts since 2023

Also, 180 early withdrawal penalty compared to 365+ at numerous other banks helped my decision on the 4.5%, 5 year CD.

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thedailygrind | Jul 20, 2023 | 4 posts since 2023

Some have two years penalties. Ouch! This is why I will go with this one as well. Don't know if I can get 5%. I think they already baked the next hike into the 4.5% rate.

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txFish1 | Jul 17, 2023 | 476 posts since 2023

I have had 2 Barclays bank CD,s in the past but they were bought through my brokerage not direct but both times they always had the CD interest paid on the exact day. As far as annuities go you will probably get all kind of responses. If I was to get an annuity it would be from a company such as New York Life, Mass Mutual or USAA who has a stellar AM Best rating and it would be a Multi Year Guaranty Annuity or a fixed deferred annuity that resembles a CD in certain ways. I think you can take the monthly income off these type of annuities or you can take a 10% free withdrawal each year but they do have stiff surrender penalties. My brokerage has these that are paying anywhere from 4.5% to 4.85% for 3-5 year annuities. Good luck in your search for your MIL

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betaguy | Jul 17, 2023 | 180 posts since 2022

hard to know what to believe on the internet but these reviews are not too kind.
https://www.depositaccounts.com/banks/reviews/barclays.html

But, I think the majority of folks to leave reviews are those that have bad experiences.

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JeffinEasternFL | Jul 17, 2023 | 744 posts since 2020

Had the high interest online account years back, they drop rates faster than most others, so I'd avoid "liquid accounts"; if the CD is FDIC/NCUA insured, pays a (very) high rate (compared to others of similar duration) and has an acceptable (to you) EWP, and lastly at least one brick and mortar branch "somewhere in the USA with a local phone number" then THAT would be the place to lock it up in a CD or CD ladder depending on needs if the reviews were ok and you seemed to get good service when you inquired.

A CD and an annuity are not comparable (but the annuity pays a FAT commission - I know that as a former financial planner of 15~ years). Some can be very advantageous, others not so. Depends typically on the riders and what the annuity/rider is attempting to do.

For example, before retiring I sold myself a deferred Variable annuity with a guaranteed 7% annual withdrawal rate (after 10 years) and an annual step up/lock of sub account values. It allowed me to overcome costs with a sub account that was an aggressive 80% equities (placed in the account a record high market values), had a 10-year principal guarantee cash out option (though I passed on that :). I placed ALL my deferred IRA monies in it (they were going to be taxed as ordinary income anyway), then on 2008 through '09 watched it drop over 50%~ then end up double what I originally invested in it in 2007 by 2019. :) 12 years of roller coaster but, "peace" in my mind. I'm guaranteed $72K+ annually from it as long as I live - even if the account value goes to zero! THAT's a great annuity. And it was backed financially by a large superior rated A+ company (Met Life).

With its reasonable gains after now 4 years of withdrawals - I'm still withdrawing profits! In the future normal market returns will finally mean it's my own monies deposited being withdrawn, then if I live long enough: and even IF the account is empty but, $72K comes in annually - the insurance companies' money. That was well worth the annual 3.5%~ costs for sure! I slept VERY well, guaranteed my principal and income and had stock market returns (after stock market losses but, again, my principal was guaranteed).

If you wanna buy/need an annuity, PAY an ANNUITY EXPERT to assist you!!!

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Listedguru | Jul 17, 2023 | 63 posts since 2022

Sorry for the deleted post

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thedailygrind | Jul 20, 2023 | 4 posts since 2023

What age do you have to be to get the 7% withdrawal rate. I assume whatever the value is after 10 years is what they base the 7% on. So you started with 1M and went to 500K then you'd get 35K for life.

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choice1 | Jul 17, 2023 | 370 posts since 2023

A little off point but…
Had a Barclay credit card for years that was linked to mid level hotel chain and the account was assigned to the poster child of… Wells Fargo. Poor judgment by someone

PS on annuities…years ago I researched the pitfalls and learned then one wanted an annuity registered with NY Insurance Commissioner…so-called ”better regulation”. Also be careful as to what was or wasn’t approved, eg years ago one issuer tried to argue that interest rate could be unilaterally changed annually but the metric was what it unilaterally determined by …(don’t recall the metric) but it was what it stated in the cover letter transmitting the policy…I said “really,” meaning the ins commission approved the wording in the letter? Of course it hadn’t and I negotiated a no surrender charge rescission. Crooks!

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MAKNYC | Jul 17, 2023 | 323 posts since 2015

I’ve been banking with Barclays US online since 2012. Last CD I had with them was a 5 year from 2015-2020. I have never experienced any issues with them. I do not recall any complexities with the CD, but it was long enough ago that I might not. Because I also had the savings account the CD proceeds were transferred into it without issue on maturity day. I have had no issues with other FI push/pull from my savings account, and I don’t recall my last Barclays initiated push/pull to comment.

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Hooked | Jul 19, 2023 | 236 posts since 2019

My 5-year Barclays CD matured this past Sunday. In my online account, I directed that the CD be closed upon maturity and funds transferred to my linked external account. Funds arrived at external account on Tuesday. No complaints.

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Listedguru | Jul 24, 2023 | 63 posts since 2022

OP here with a few more questions regarding Barclay's CD's:

Can we set up multiple CD's in case we need to break one that way we don't need to break one big CD ? For example instead of doing (1) 100K CD at Barclay's can I do (1) 50K and (2) 25K CD's? That way we could always break one of the smaller ones if that money were needed before the CD term is up.

Also it looks like we can have that monthly interest transferred out to an external account at another bank? Hopefully we can set this up so it happens automatically every month.

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John19 | Jul 24, 2023 | 395 posts since 2022

I don't know if they have a minimum amount for CDs. But you can definitely open up many CDs with different amounts rather than just one big CD. And you can get it to pay the interest to an external account.

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