e-Saver Reward first Chelsea online savings account

The internet is playing an increasingly vital role in today's lifestyles by transforming the way people conduct their affairs, affecting everything from getting news to financial management.

People no longer have to walk into a brick building to obtain a savings account thanks to the availability of online banking services through which consumers can access internet savings accounts. One of the online financial products on offer is Chelsea Building Society's e-Saver Reward account, which can be opened with just £1.

The first online savings account from the company, the product pays 2.6 per cent annually or 2.57 per cent on a monthly basis and savers can use it to accumulate up to £1 million. UK residents aged 16 or over can open it and all they require is an initial deposit, which can be made by debit card, transferring funds from another bank or building society or moving money from another Chelsea account.

However, people planning to open the account should take note of the fact that any withdrawals made will lead to a loss of interest for the month, although no additional interest will be lost should they take out more money in the same calendar month.

Sarah Lawrence, senior product manager for savings at Chelsea, explains that the e-Saver Reward account was "made possible using technology now available to the society following the merger with the Yorkshire".

"The Chelsea e-Saver Reward account will be a real plus for anyone looking for a competitive rate who wants to combine monthly interest with easy to use internet savings," she adds.

According to the building society, it has "a great range of savings accounts and investment options to help you". In addition to the aforementioned product, consumers can choose easy access accounts, notice accounts, bonds, tax-free cash ISAs, accounts for children and other investment plans.

Parents who want to instil a saving habit in their children from an early age may want to consider Chelsea's Ready Steady Save, an easy access savings account designed especially for young ones. Aimed at those aged 15 or under, the product can be operated through the society's branches across the country.

It has a variable interest rate earned from £1 and paid on an annual basis on December 1st, with users allowed to save up to £20,000 and get instant access to their money. The account is passbook-operated and children aged under ten require a parent or guardian to open one.

"At Chelsea Building Society we recognise the importance of planning for your child's future," states the company, which has also teamed up with the Children's Mutual, specialists in savings for children, to encourage families to build nest eggs.

The Children's Mutual can provide parents with information on the savings options available to them and explain what they could mean to them.