Bill paying is a necessary monthly task, but it's certainly not fun. Make the process less stressful — and more streamlined — by settling the bills through a dedicated bank account. This method helps you calculate your monthly expenses more easily. The process of opening a separate account for bills is the same as opening a regular account.
Choose a bank for your bill-paying account. You can select a new bank or open a separate account at your existing bank. If you choose the latter, because you're an established customer, your bank wouldn't require as much information from you as a new bank and would provide benefits such as the ability to manage your accounts in one location and transfer money between them. However, a new bank might offer attractive benefits unavailable at your current bank.
Research the type of accounts available at the bank to find one that’s best for you. For instance, find out if the accounts bear interest, if there is a minimum monthly balance and if there are any monthly fees. A checking account might be better than a savings account for bill paying. Most banks limit the number of third-party transfers from a savings account and charge a fee for each transfer over the limit.
Visit the bank to open an account. The process involves completing an application and supplying at least the minimum deposit required. You'll have to provide your driver's license or state ID card and your social security number. Many banks also offer phone and online applications and have applicants send supporting documents by mail. These requirements might be waived if you are opening a new account at your current bank.
Log into your account on the bank’s website to prepare it for bill payment. Enter the details for each bill, such as the creditor’s name and address and the account number. You can log in to send out payments each month or set the account to send recurring payments automatically on a specific date.
- Brand X Pictures/Brand X Pictures/Getty Images