Barclays Online CDs
Barclays has relatively high APY rates for its online CD options. As of July the 6-month CD has a rate of 0.65%, the 12-month CD has a rate of 2.45%, and the 60-month CD has a rate of 2.75%. Like the online savings accounts, these accounts are FDIC-insured. The accounts compound interest daily, and offer fixed interest rates with no minimum balances and no monthly maintenance fees.
Rates are always subject to change, but the current rate on the 60 month CD offered by Barclays is one of the highest-yielding 60-month CDs around. The shorter term CDs offer relatively competitive rates, too.
Barclays Online CD Features
Multiple Term Options: You can currently get a CD for a term from 3 months to 60 months.
Automatic renewal: When a CD matures, you can automatically renew the CD or roll it into a different maturity. Beginning on the date of maturity, you’ll have a 14-day grace period in which you can withdraw funds from your CD without penalties. Barclays will send you an email alert approximately 30 days before your CD matures.
No minimum: Unlike some other banks, the Barclays Bank Online CD has no minimum deposit to open a CD or maintain your account.
CD Ladders: CD laddering is a method of using CDs of various maturities to access higher rates, usually utilizing long-term CDs, while still allowing some of your money to be available at short-term intervals. Barclays has an easy to use online calculator tool for creating a CD ladder. This lets you move try various scenarios of setting up CD maturities to see what interest rates you will get and when your cash will be available if you need it. If you’re wondering about how to best build a CD ladder to meet your specific needs, give the Barclays online tool a try.
The fees for Barclays Online CDs are similar to most fees of CD programs out there.
Early Withdrawal: There is a fee for taking money out of your account before a CD matures. Barclays charges 90 days simple interest on the amount withdrawn for CD accounts with terms of 24 months or less. For CD accounts with terms greater than 24 months, the bank charges 180 days simple interest on the amount withdrawn. This fee reflects and important point about using CDs to invest your money. You should only put money into a CD if you don’t need that money until the maturity date of the CD. If you need to access the money before that date you will pay a fee that will come out of the interest you have earned to that point.
Statement Copy: Similar to the Barclays Online Savings Account, this charge is assessed for paper copies of statements sent to the customer.
Express Mail: As with the savings account, a charge of $25 is assessed for sending documentation to customer via Express Mail.
Barclays Bank uses the latest in online security measures to protect your information. This includes a 128-bit secure link between your browser and the bank. A Global Digital certificate signed by VeriSign will also ensure you are communicating with Barclay Bank and not another website. The site also uses a time-out to logon sessions and firewalls to block unauthorized traffic to their site.
Getting An Account
If you are interested in opening an account, you can apply right from the Barclays Online Bank website. Make sure you have your existing bank routing number and account number you’ll use to fund your Barclays Bank account. Like other financial institutions, Barclays Bank will require information to verify your identity when opening an account. You will need to provide name, address, date of birth, and other information that will allow them to identify you. To open an account, you must be at least 18 years old, a U.S. citizen or a resident alien with a valid Social Security Number, with a U.S. address. Federal law requires Barclays Bank to have a Social Security Number (SSN) on every account.
Customer Service and Support
Aside from online customer service tools, where you can submit questions or requests, Barclays Bank also has a phone line called Customer Care. The toll-free line is open 7 days a week, from 8:00 AM to 8:00 PM EST.
The Barclays Bank Online products are a great option when compared to similar products at other banks. If you determine that you don’t necessarily need your savings account directly attached to your checking account, then the online high-yield savings account at Barclays Bank offers a good rate with no monthly maintenance fees. The CDs also come in at competitive rates, and the longer-dated maturities are some of the best rates you will find. Barclays Bank itself has been around for centuries and has a solid reputation. Its foray into the online banking market is a recent endeavor, but it has stepped into the arena with products that are certainly worth a look.