Barclays Tiered Savings Account 2024 Review

Barclays Tiered Savings rewards you with a higher rate when you maintain a higher balance in your account. There are no monthly maintenance fees or minimum balance requirements and you'll have 24/7 online access to your money. 

The Barclays Tiered Savings account ties your annual percentage yield (APY) to your balance. The more money you keep in savings, the higher your rate goes. That's fairly unique among online savings accounts, which typically pay the same APY across all balances. 

This savings account could be right for people who:

• Want to earn a competitive rate on savings
• Plan to maintain a higher balance
• Want to avoid monthly fees and minimum balance requirements
• Don't mind an online savings account

There's no minimum balance requirement to get started. You can open a savings account with Barclays online in minutes.

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Compared to Other Online Savings Accounts

Forbright Bank Growth Savings Account

The Forbright Bank Growth Savings account offers an exceptional APY to savers across all balance tiers. There are no monthly fees and you can easily manage your account through online and mobile banking. Forbright Bank is a fossil-free and green business-certified company, which may appeal to savers who want to support sustainability while growing their money. 

Read our full editorial review of the Forbright Bank Growth Savings account

Bank5 Connect Jumbo Savings Account

Bank5 Connect takes a tiered approach to savings, with balances of $25,000 and up earning the highest APY. There are no monthly maintenance fees but Bank5 does charge a small fee for paper statements. Savers enjoy 100% FDIC insurance on every penny in their accounts, even beyond the standard $250,000 coverage limit. 

Read our full editorial review of the Bank5 Connect Jumbo Savings account

One Savings Account

One is a mobile banking app and debit card that includes a high-yield savings component. When you open an account with One, you can earn a competitive rate on savings balances with qualifying direct deposits. There are no monthly fees and you can earn up to 5% cash back to add to your savings when you use your debit card to make purchases at partner brands. 

Read our full editorial review of the One Savings account

Affirm Savings Account

Affirm is a buy now, pay later platform primarily but you can also grow your savings here at competitive rates. There are no monthly fees to open a savings account with Affirm and no minimum balance requirements. Deposits are FDIC-insured through Affirm's partner, Cross River Bank. 

Read our full editorial review of the Affirm Savings account

Interest Rates

When you're ready to open a savings account it's natural to look at the rates. After all, you want to get the most interest for your money. 

Barclays Tiered Savings offers a range of rates to savers. The APY you earn directly corresponds to your balance. There are six balance tiers altogether. 

So, how do the rates compare? At the higher end, the rate is on par with what you'll find at other online banks, though it's not as high as some of the savings accounts profiled above. 

And there's a catch of sorts.  You'll need to keep $250,000 or more in savings to get the best rate. 

That could make this savings account less attractive for people who don't have a lot of money to save just yet or prefer not to keep that much money in cash. 

It's always a good idea to shop around and compare high-yield savings accounts. That way, you can see which banks offer the best combination of high rates and low fees. 

Fees

Banking fees can eat into your savings. Online banks tend to be more fee-friendly than traditional banks, though they aren't necessarily fee-free. 

Here are some of the fees Barclays charges for its tiered savings accounts.

Other Service Fees - Barclays Tiered Savings

Overall, this is one of the better online savings accounts for avoiding high fees. 

ATM Access

Barclays doesn't offer an ATM card with the Tiered Savings account. However, that's not unusual for online savings accounts. 

Having an ATM card is helpful if you need to withdraw cash in an emergency, but it can work against your goals. If you're regularly dipping into savings for cash because it's convenient, it can be harder to build up your balance. 

If you're considering a savings account that includes ATM access, check the size of the network. Some banks allow you to use a broader range of ATMs than others, which matters when you need to make a withdrawal. 

Also, take a look at what fees you might pay to use another bank's ATM and whether your bank reimburses foreign ATM surcharges. 

Account Management

You can manage your Barclays Tiered Savings account online or via the mobile banking app. If you need to deposit money, here are the options:

• Internal transfer from another Barclays account
• External ACH transfer from a linked bank account
• Mobile check deposit
• Wire transfer

You can't write personal checks from this account but you can purchase official checks for a fee. If you have cash to deposit you'll first need to deposit it into a linked bank account. From there, you can transfer funds into your Barclays account. 

Barclays doesn't participate in the Zelle network. However, you can still link your account to the Zelle app if you want to send and receive payments with friends and family. Standard Zelle deposit and withdrawal limits apply. 

FDIC Insurance

FDIC insurance offers a layer of protection in case a bank fails. Should that happen you'd be able to get your money back, up to certain limits. 

The current FDIC coverage limit is $250,000 per depositor. Barclays is a member-FDIC bank so your Tiered Savings account balance is covered. 

You can keep a maximum of $1 million in your account. However, FDIC insurance only applies to the first $250,000.  

What to Look for in a Savings Account

There are lots of savings accounts to choose from and some might be a better fit for your needs than others. As you compare savings accounts, here are some helpful questions to ask. 

• What APY does the bank offer?
• Are rates tiered by balance or will you earn the same APY, regardless of how much or how little you save?
• What's the opening deposit requirement?
• Is there a minimum balance requirement?
• How much money do you have to open a savings account? 
• Is there a monthly fee?
• What other fees will you pay?
• What do you need to open an account?
• Do you need to open an account with new money to get the advertised APY?
• Is there a limit on the number of withdrawals you can make?

You can look at traditional savings and online savings accounts to see which one offers the best combination of features and benefits. Credit union savings accounts are also worth considering, though you'll need to meet membership requirements to join and open an account in most cases. 

Frequently Asked Questions

How does a tiered savings account work?

Tiered savings accounts work by assigning APYs based on account balances. For example, if you have less than $10,000 in savings you might earn an APY of 1.00%. But if you have more than $250,000 in your account you might earn an APY of 4.80% instead. Tiered savings accounts can be attractive for people who are committed to growing their balance over time. 

Is Barclays a good place to save? 

Barclays has earned a solid reputation among online banks for offering higher savings account rates while charging fewer fees. Whether it makes sense to choose Barclays or another bank can depend on your savings account needs and the range of features that you're looking for. 

Is an online savings account the best way to save?

Online savings accounts are attractive thanks to their higher rates and lower fees, compared to traditional savings accounts. The trade-off is that you typically don't have branch banking access with an online savings account. Whether that's important to you can depend on your typical banking habits and preferences.