For many young people, having a checking account to pay bills and keep track of cash flow is a necessity of life, especially if they have car loans, insurance, or credit card bills to pay. Since service charges on checking accounts can cost $50 to $200 per year at various banks, it is important to carefully consider the type of checking account you need and to shop around for the lowest monthly service charge rates. Some banks even have free checking accounts.

Types of checking accounts

There are many different types of checking accounts — some with fancy names that are mostly for advertising purposes. The important thing is to consider how you will be using your checking account and select the type that works best for you.

• Basic checking

• Express checking

• Student checking

• Interest-earning checking

• Internet interest-earning checking

Opening your account

When you go to the bank to open your account, you should bring the money for your opening deposit and proof of your identity. Expect to be asked to show:

• A photo ID (driver’s license, passport, or student ID card)

• Your social security number

• Address verification (some banks require a utility bill showing your current address or some other type of business correspondence)

After your application is completed, you will sign a signature card that will be kept on file at the bank. You will also get to choose the type of checkbook you want and your checks will be ordered. Most banks also set up your ATM account during this visit.