Requirements

• To open a checking account you need government identification containing your photo and a tax identification number. You must also pass a Chex Systems check to open a checking account. Chex Systems is a reporting agency that lists data about consumers who have had problems with checking accounts in the past, such as writing bad checks or leaving an overdraft balance at another bank.
  
  

Benefits of a Checking Account

• You can perform a number of convenient financial transactions using a checking account besides simply writing a check. For one, some banks offer online bill pay services, which automatically sends a paper check to the payee of your choice through an online account management system. You can also set ACH (Automated Clearing House) payments with your creditors using a checking bank account and routing number. When you have a checking account you can also schedule automatic deposits from payers, like your employer, which is quicker than waiting for a physical check in the mail.
  
  

Managing a Checking Account

• If you're going to manage a bank account it's helpful to establish a personal budget listing your expenses and income for each month. With a budget you have an idea of how much money is coming in and leaving the account each month. If you use a debit card with your checking account, you must also record each of these miscellaneous transactions outside of your standard bills. If you write paper checks, you must also balance your checkbook regularly. Refer to your monthly bank statement each month to check each debit, withdrawal or check you've written and match it to your check register. If you do not manage your checking account activity you risk overdrawing the balance, which can result in expensive fees of about $20 to $30 per offense.
  
  

Concerns

• When using a checking account watch your transactions closely, preferably at the beginning of each day. If you make a mistake and the account goes overdrawn, you can sometimes resolve the issue before the close of business to avoid overdraft fees. With a checking account you also risk fees for falling below a certain minimum balance at some banks. Talk to a bank representative when you first open the account to find out the terms before you start processing transactions.