Check out our full comparison of Apple Pay vs PayPal in the UK, including pros, cons and features compared.
Want to make your savings go further? Whether you’re saving towards a house or a car, or just putting money aside for later life, a savings account could be just what you need.
If you’re shopping around for savings accounts, Barclays is one of the major banks you’ll come across. But is it the right option for you? Here, we’ll look at the different Barclays savings accounts available, what interest rates they offer and how to apply for an account.
Want to earn a return in multiple currencies? With Wise Interest, you can get a 4.82% variable rate on your GBP balance held in your Wise multi-currency account.
Capital at risk. Current rates do not guarantee future growth.
Variable rate is based on 7 day performance as of 10 Aug 2023. This fund has returned an 0.93% annual average over the last 5 years, excluding Wise and fund manager fees. See full 5 year past performance of funds.
A UK savings account is a safe place to put your money and earn interest on it, so it gradually increases in value. The interest is paid by the bank or building society providing the account, and can be at a fixed or a variable rate.
There are a few different types of savings account you can choose from to suit your needs. Your choice may depend on how much you can save, whether you can commit to a regular deposit and whether you need easy access to your money.
Some of the most popular types of savings account in the UK include:
- Easy access - these offer instant access to your money whenever you need it, with no fees or penalties for withdrawals
- Fixed-rate - these accounts offer higher interest rates if you can ‘lock away’ your money for a fixed period of time (i.e. 1-5 years)
- Notice accounts - these give you access to your money, but only if you provide a pre-agreed amount of notice (i.e. 2 months).
- Regular savers - these accounts require a regular deposit each month, up to a maximum sum.
- Cash ISAs - these accounts let you earn tax-free interest on your savings up to a certain threshold.
Why open a savings account at all? There are a number of reasons, starting with having a financial safety net. With surplus income earning interest, you can build up a nest egg for later life or just in case you lose your job.
People also open savings accounts because they’re saving towards a particular goal, such as a deposit on a property purchase or the holiday of a lifetime.
When you deposit funds into your savings account, it is effectively being ‘hired’ by the account provider - usually a bank or building society.
The provider can use the money to invest or lend out to other individuals or businesses, although there are strict rules about how much can be lent out at any one time. This means you don’t need to worry about access to your savings.
In return, they give you interest. This could be a fixed or variable rate, paid monthly or annually, depending on the account.
Another key thing to know about UK savings accounts is that most are covered under the Financial Services Compensation Scheme (FSCS). This is a government scheme offering protection of up to £85,000 per person and £170,000 for joint accounts just in case the provider goes under¹.
This should offer peace of mind, especially if you’re planning to save long-term and build up a sizeable pot.
Now, let’s turn our attention to Barclays savings accounts. Firstly, the account types available, including instant access, fixed rate and cash ISA products.
Here’s a rundown of all the savings accounts options at Barclays, broken down into categories²:
This simple savings account lets you withdraw money whenever you need to, and offers interest on balances from £1 to £10 million.
Exclusively for Barclays Blue Rewards customers, this instant access account can be opened with just £1. You can make withdrawals if you need to, but bear in mind that you’ll get a higher rate of interest if you leave your money alone.
The Barclays Instant Cash ISA offers two tiers of tax-free interest, depending on the balance in your account. You can open it with just £1, or transfer in an existing ISA. You can withdraw your money anytime.
This 2-year account offers a fixed rate of interest on balances from £1 to £1 million. If you need to access your money, you can make up to three withdrawals of up to 10% of the balance free of charge.
Offering the same terms as the 2-Year Flexible Cash ISA, these products exclusively for Premier and Wealth customers offer a slightly higher rate of interest.
Bonds at Barclays offer a fixed interest rate, which can offer a degree of savings security when rates are fluctuating.
Lock your money away for 12 months with this Fixed-Rate Bond and you’ll get a guaranteed interest rate on balances up to £1 million. You’ll need to make a minimum deposit of £500, and won’t be able to make any withdrawals during the year.
This 2-Year Flexible Bond offers the security of a fixed interest rate, and limited access to your money if you need it. You can make up to three withdrawals, each up to 10% of your initial deposit. You can open this account with just £1.
Offering the same terms as the 2-Year Flexible Bond, this option for Barclays Premier or Wealth customers offers slightly higher interest rates.
Barclays also offers a dedicated savings account for children.
Take a look below for a handy, at-a-glance table of interest rates, so you can compare all Barclays savings accounts easily.
|Account||Interest rate (AER/gross)²|
|Blue Rewards Saver||0.01% for months with 1+ withdrawals and 0.40% for months with no withdrawals|
|Instant Cash ISA||0.05% for balances from £1 to £29,999 and 0.10% for balances of £30,000+|
|2-Year Flexible Cash ISA||0.50%|
|Premier/Wealth 2-Year Flexible Cash ISA||0.55%|
|1-Year Fixed-rate Bond||0.30%|
|2-Year Flexible Bond||0.40%|
|Premier/Wealth 2-Year Flexible Bond||0.45%|
You can apply for all of Barclays savings accounts online, by logging into online banking. Alternatively, you can open a new account via the Barclays mobile banking app.
If you don’t already bank with Barclays, you’ll need to call customer services on 0345 744 5445 or visit your nearest branch to get started. If you’re applying in branch, make sure you take proof of ID and your address with you.
Sources used for this article:
Sources checked on 21-03-2022.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
Check out our essential guide to PayPal vs. credit cards for shopping online in the UK, including pros, cons, security, fees, limits and more.
Each Christmas, scammers target people with holiday booking scams. Read Alex's story to learn how scammers stole their money and tried to ruin their holidays.
If you’re looking for a good place to keep your money, or for a day to day current account, you may be wondering: is the Co-operative Bank safe - or even: is...
Each Christmas, scammers target people with holiday booking scams. Read Max's story to learn how scammers stole their money and tried to ruin their holiday.
Can I use Revolut in Albania? A handy guide covering using your Revolut card and account in Albania, spending in ALL and more.