bank rates

Barclays Cuts Online Savings Account Rate

Large percentage signThe online savings account offered by Barclays has finally taken a hit.

For more than a year, the huge British financial services company offered American depositors a 1.00% APY savings rate through its online U.S. bank.

Today, the bank cut its rate for the first time since we started tracking the account in March 2012. It now pays 0.90% APY (www.banking.barclaysus.com).

There are just two banks remaining that pay 1.00% APY on nationally available savings accounts.

During much of the last year, the Barclays rate has been competitive, but not the top deal. For the last three months, however, it has led our rankings.

That’s some pretty good staying power in this terrible rates environment.

Six other banks have offered rates as good or better during that time. None kept rates unchanged for as long as Barclays.

Here are your two best bets today:

  • CSBdirect (www.csbdirect.com) pays 1.00% APY on balances of $1,000 and higher, while lower balances earn 0.55% APY.
  • CIT Bank (www.bankoncit.com) requires you to have at least $25,000 in your account to earn 1.00%. Lower amounts earn 0.90% APY.

Even with the cut, Barclays remains among the savings leaders.

Besides the rate leaders, the only other bank paying a higher rate is SFGI Direct (www.sfgidiret.com), at 0.94% APY on all balances. The 0.90% APY puts Barclays in a tie with Salem Five Direct (www.salemfivedirect.com), which pays that same rate on all balances.

There are several nationally available money market accounts that pay a slightly higher rate than the savings accounts featured here.

Compare all of these offers to the best money market rates in our extensive database.

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  1. Hezzie said:
    on May 20th at 12:09 am

    CSB Citizens State Bank
    Personal Savings
    Customer Notice: We are temporarily not accepting new online savings accounts at this time.