By  Fri Mar 23, 2012

Barclays Debuts Online Bank with Savings, CDs

Kurtis Garbutt / Flickr source

The Internet banking scene gets a little more crowded with the launch of an online bank by Barclays. At launch, Barclays offers an online savings account and a wide range of certificates of deposit (CDs) with competitive interest rates.

Barclays’ new online bank launched last week, according to a report by DepositAccounts.com. The deposits are held with FDIC-insured Barclays Bank Delaware.

Barclays’ Online Savings account currently offers a 1.00% APY, which is the second-highest nationwide savings rate behind TIAA Direct’s online savings rate of 1.25% APY.

The durations of the CDs available at Barclays range from three months to 60 months. They carry an early withdrawal penalty of 90 days worth of interest for all maturity durations.

Other characteristics of Barclays’ online bank follows those of the online banking industry. The savings and CDs don’t charge any monthly fees or require a minimum balance.

When it comes to remote deposit capture, the ability to deposit checks without visiting a branch or ATM, Barclays is a step ahead of its competitors. the new online bank offers the service for free through a scanner or a smartphone.

A check can be deposited by taking images of the front and back sides of an endorsed check.

For its remote deposit service, Barclays sets a maximum individual check amount of $5,000, a daily deposit maximum of $10,000 or 10 checks. In a 10-day period, the maximum deposit limit is $50,000 or 20 checks.

According to a Barclays phone representative, the online bank’s mobile applications — for iPhone, Android and BlackBerry devices — is not yet showing up on the respective mobile-platform’s app stores.

However, the scanner-based remote deposit service is available through online banking.

Here are Barclays’ products and rates as of March 23, 2012:

Product APY (as of 3/23/12)
Online Savings 1.00%
3-month CD 0.35%
6-month CD 0.55%
9-month CD 0.65%
12-month CD 0.90%
18-month CD 0.95%
24-month CD 1.15%
36-month CD 1.40%
48-month CD 1.60%
60-month CD 1.75%

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