Barclays Plans Online U.S. Bank: Reports

LONDON (TheStreet) -- Barclays PLC (BCS) plans to launch an online savings bank in the U.S., according to published media reports.

Barclays Monday will begin marketing an online savings account and longer-term cash products that pay up to 1.75% for a five-year deposit, the Financial Times reported.

It will be the London-based bank's first foray into U.S. retail banking in decades, the FT added.

The online savings bank is aimed at providing funding for the bank's U.S. credit card business, so the bank won't have to rely solely on volatile wholesale markets, The Wall Street Journal reported.

"We want to grow our credit-card business over time in the U.S., so we want to make sure we can fund the growth," Antony Jenkins, the chief executive of Barclays's retail and business banking operations, was quoted saying by the Journal. "In this day and age, it's always good to have diversity of funding."

Barclays currently has no retail branches in the U.S., nor does it plan to establish them, the FT reported.

U.S. traded shares of Barclays shed 25 cents Friday to close at $13.44.

This article was written by a staff member of TheStreet.