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Barclays Tiered Savings Review: Barclays' Best Savings Rate, but It's a Steep Climb

Review Updated
Steven Porrello
By: Steven Porrello
Steven Porrello
Steven Porrello
Writer

Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Our Banking Expert

Ashley Maready
Check IconFact Checked Ashley Maready
Ashley Maready
Ashley Maready
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Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

Our quick take: Get the Barclays Tiered Savings if you can maintain a high daily account balance and want a no-frills savings account with no fees or account minimums. If you prefer online banking, read on to see if the Barclays Tiered Savings best suits your banking needs.

Barclays Tiered Savings
Open Account for Barclays Tiered Savings

On Barclays' Secure Website.

Member FDIC.

Ratings Methodology
Rates as of Aug 23, 2024

Barclays Tiered Savings

Open Account for Barclays Tiered Savings

On Barclays' Secure Website.

Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for Barclays Tiered Savings

On Barclays' Secure Website.

APY
up to 4.80% Rate info Circle with letter I in it. Balances less than $10,000 earn 1.00%, balances $10,000 to less than $50,000 earn 4.40%, balances $50,000 to less than $250,000 earn 4.50%, and balances greater than $250,000 earn 4.80% APY.
Min. To Earn APY
$0
  • Competitive APY
  • No monthly account fee
  • No minimum deposit to open an account
  • Unlimited number of external transfers
  • FDIC insured
  • Withdrawals can only be conducted via ACH transfer to/from an external bank account
  • Balance requirement for maximum APY
  • No ATM access
  • No wire transfers (inbound or outbound)
  • No branch access; online only

For those who can maintain a high account balance, we think the Barclay Tiered Savings account's APY is hard to beat. Not only does it offer a strong APY, but it also has no monthly fees, no minimum amount to open an account, and no withdrawal limits.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 4.60%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
4.25%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A
5.15%
Rate info Circle with letter I in it. To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn: $0
N/A

Full Barclays Tiered Savings review

Barclays is an online-only bank that offers competitive interest rates on its savings accounts and certificates of deposit (CDs). The Barclays Tiered Savings is a compelling high-yield savings account with no fees and strong APYs, but it won't be right for everyone, especially if you can't maintain a daily account balance of $50,000 or more. With that in mind, let's break it down and see how it works.

Barclays Tiered Savings interest rate

Account APY Minimum Deposit
Barclays Tiered Savings up to 4.80% $0
Data source: Barclays.

The Barclays Tiered Savings account has a tiered interest system that increases your interest rate based on your account balance. You'll earn some interest on any amount you deposit.

But balances greater than $10,000 earn at an APY that's slightly higher than the Barclays Online Savings account, which is also free and offers 4.20% APY on all account balances. But to get the highest possible APY on this account you'll need a balance of at least $250,000.

Fees

If you like the sound of "free," rest assured that the Barclays Tiered Savings is about as free as you'll get. There's no monthly service fee, no statement payment fee, no insufficient funds fee, and no account research fee. The only fee is $0.50 for paper copies of bank statements mailed to you. But as long as you're getting electronic statements, you won't have to worry about this.

Minimum balance

This account has no minimum balance requirements to open. This differs from other high-yield savings accounts, which often require you to open an account with $100 or more. Given the account's tiered APY system, however, you may need to maintain a certain balance to continue earning at the same rate.

Barclays states on its website that in order for interest to post to your account you must maintain a minimum balance that would earn you at least $0.01.

Withdrawal limit

Barclays imposes no limit to the number of withdrawals you make from its Barclays Tiered Savings account. You can make as many monthly withdrawals as you like without paying fees for going over a limit.

Mobile app

You can access your Barclays Tiered Savings account through the Barclays U.S. Savings app (Barclays has a separate app for its U.K. banking clients, so make sure you download the right one). The app will let you check your balances, transfer money, and deposit checks.

However, many users have pointed out that the app is outdated (it hasn't been updated since June 2023), clunky, and lacks the charts and budgeting tools found with more highly rated banking apps.

How to access your money

Most online-only savings accounts have higher APYs but don't offer the same withdrawal flexibility as a brick-and-mortar bank. The Barclays Tiered Savings is no different; in fact, your deposits and withdrawals are limited to electronic transfers only, as we'll discuss below.

Deposit options

Deposits into your Barclays Tiered Savings account must be electronic, whether that's an automated clearing house (ACH) transaction or mobile check deposited through the app. You can also fund your account by sending Barclays a physical check, though some check types aren't accepted (like starter and third-party checks). Cash, wire transfers, or money orders are not accepted.

Mobile check deposits have the following limits:

  • Individual check maximum: $5,000 per day
  • Amount maximum: $10,000 per day
  • Maximum number of checks: 10 checks per day
  • 10 business day maximum: $50,000 / 20 checks

Withdrawal options

As you might expect by now, withdrawal options are limited to electronic transfers between your Barclays Tiered Savings and another bank account. Unfortunately, since Barclays doesn't have physical branches, you can't withdraw cash in person nor from ATMs.

Online user reviews

While there aren't any user reviews on the Barclays Tiered Savings account specifically, Barclays banking clients seem unified in their disdain for the bank's website and mobile app. Most users find the app clunky and outdated.

Others were annoyed by Barclays' external account verification process, which requires receiving two test deposits in the account you're trying to link. Though this verification process is standard for many banks, it seems some clients found the process less intuitive at Barclays.

Top perks

High APY: This is a great account for high-balance customers as you'll grow your money at Barclays' best rate for savings accounts -- up to 4.80%. While you can certainly find higher APYs on other high-yield savings accounts, this one also has the benefit of simplicity and no fees.

No fees: When you look at the Barclays Tiered Savings fee schedules, it's a bunch of zeros. The only fee you'd pay is for a paper copy of your bank statement ($0.50 per statement). Other than that, this is purely a free savings account.

No withdrawal limitations: You can make as many withdrawals as you'd like within a day with no transaction caps. Since some savings accounts limit your transactions to six per month, this could give you more flexibility if you're someone who typically makes more withdrawals than that.

What could be improved

Balance tiers are steep: You need to maintain at least $10,000 (and ideally $250,000) to make this account worth it. Otherwise, you're better off with the Barclays Online Savings account, which offers a 4.20% APY on all account balances.

Limited withdrawal options: While there are no limitations on the number of withdrawals you can make, your options are restricted to electronic transfers. Other banks with high-yield savings accounts will at least offer a checking account with ATM access. Since Barclays doesn't have this luxury, withdrawals from your savings may not be as instant as you like.

Mobile app has low ratings: The majority of users on iOS and Android seem frustrated with the Barclays U.S. Savings app. Users claim that the app frequently forgets their login information, doesn't have a fingerprint login (yet), and sometimes asks you to update the app even when there isn't an update available. If mobile banking is your preference, the app might leave you frustrated.

Is Barclays Tiered Savings FDIC insured?

Yes, the Barclays Tiered Savings account has FDIC insurance. Each depositor on the account is insured up to $250,000 in FDIC insurance.

Barclays Tiered Savings is right for you if:

  • You want to earn high interest on a free online savings account.
  • You can maintain a high enough daily minimum balance to slot you into an APY tier that's higher than the Barclays Online Savings account.
  • You don't need in-person branch support, ATM access, a debit card, or check-writing privileges.

Keep reading about Barclays:

Our savings account methodology

At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.

Our scores are weighted as:

  • APY: 50%
  • Brand and reputation: 20%
  • Fees and minimums: 15%
  • Other perks: 15%

Learn more about how The Motley Fool Ascent rates bank accounts.

FAQs

  • The Barclays Tiered Savings account has a competitive interest rate for high account balances, no fees, and no minimum opening deposits, making it one of the best high-yield savings accounts. The more you save, the better this account gets. That said, those with low daily balances might be better served with a non-tiered account, like the Barclays Online Savings.

  • Yes, the Barclays Tiered Savings account can receive direct deposits.

  • The maximum balance limit is $1 million. Once you reach $1 million, you'll need to open another Barclays Tiered Savings account (maximum limit of three per customer) to deposit more.