You need a checking account to pay your bills

A checking account can be opened in a bank nearby and use it to make deposits or withdrawals easily as and when necessary. Your will be paying all your utility bills through this account and execute most of your money transactions. By issuing a check you can withdraw your money from a checking account. You can also use a debt card to access your money or setup an automatic transfer. There transactions you make are termed as debits and the money you deposit will be called as a deposit.

You are required to maintain a running balance in your checking account when you first open it so as to keep track of the money you have in the account. This will stop you from making any overdraft. You also ensure that you balance your account every month in order to eliminate errors the bank or you have committed.

Before you choose to open a checking account you should examine the many options the bank has to offer. Go through the features of each option very carefully before choosing the one you think will be viable and convenient.

You will find that most banks offer many options when it comes to checking accounts. You should carefully consider the features that you need the most as you choose your checking account. Special attention should be paid on the minimum required balance you have to keep in your account and select the one you will be comfortable maintaining. Otherwise you will be left owing money to the bank. Some accounts limit the number of debit transactions or checks you can have in a month. Some put restriction on the bill pay transactions you can make. These numbers should be in your head before you make any transaction. Move your account to some other bank if you feel the numbers are very restricted.

You should also know the overdraft rules of the particular bank and the protection they offer against it. Some allow you to connect another account so as to transfer funds to your account to cover in case your balance is negative. Some will associate your account with a line of credit to transfer money and cover you. Some will start bouncing your checks after allowing you a certain limit of overdraft. Utmost importance must be paid to understand the kind of service the bank has to offer and the fee you need to pay for these services.

FDIC offers insurance on a checking account for up to $ 100, 000. By having that much you will be better served to put most of it in a savings bank account or some other investment option.

What you need is a checking account which holds enough money to cover your daily transactions required for a month. Some banks offer checking accounts bearing interest, but they are well left due to their low interest rate. Savings account yield more interest.

The bank will run a check on your earlier banking credits. If you have been a defaulter and been reported to some bank credit checking agency, it is unlikely that you can open a checking account till your back credits are cleared.