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At a Bank
Man: "Hi. I'd like to open up a bank account, please."
Teller: "Well, let me help you. There're three basic types of accounts."
Man: "Right."
Teller: "Checking, savings and checking-savings."
Man: "I think I'd like something that I can write checks on."
Teller: "OK. Then let's go with the checking-savings account."
Man: "Good."
Teller: "OK. Here's the application and you can show me two pieces of identification."

What does "let's go with the checking-savings account" mean? Does it mean "let's choose the checking-savings account?"

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Yes. "let's go with X" in a context where X is one of several options under discussion means "let's choose X", "I choose X", or "I suggest that you choose X" depending on who says it and the relationship of the people talking.

"Lets go with" is an informal usage, and is more likely to be found in speech than writing. It would not be found in formal writing.

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