- As carrying cash can open you up to theft, and lost money, opening a checking account is a good way to keep your money safe and to pay bills receive your payroll income. A checking account will also enable you to pay bills electronically and by mail.
- To open a checking account, you will need proof of identification such as a driver's license and social security card, proof of residence, such as a utility bill or lease, and money to deposit into the account. When you open a checking account at a bank, you make a deposit, which means you give your money to the bank for safekeeping and management. The bank gives you a checkbook and a debit card that you can use to withdraw money from the account, as you need it and to make purchases. When you make a purchase, your check is treated in the same way as a merchant would treat cash.
- As you make more money, you and/ or your employer will deposit that money into the account and continue to use your checking account and your bankcard to spend the money in that account. You must keep careful track of how much money you put into the account and how much you take out, as you will be charged penalty fees if you spend more than you have in the account.
- If you write a check for more money than you have in the account, the bank will bounce the check, meaning they will send it back unpaid, or they will honor the check meaning they will pay the amount of the check, and charge you penalty fees as well. If you purposely bounce a check or write checks from an account that is no longer active, you will face legal action and may be barred from having future checking accounts.
- Just as you need to keep records of what you put in your checking account and what you take out, the bank will also provide you with several ways to check your account and reconcile your records with their records. You will receive monthly statements, and may also check your balance and recent transactions over the phone, through debit machines, and by visiting the teller at your bank. Use this information to find out if all of the checks you have written have been presented to the bank and to determine how much money you have left in a checking account.
