How to Write a Bank Authorization Letter?

How to Write a Bank Authorization Letter? –The majority of banks offer a variety of options if you want to give someone else permission to handle money in your bank account. You can grant the individual financial power of attorney and specify which transactions they are permitted to perform. Alternately, you can grant someone else access by changing your account. It is best to get in touch with your bank directly to determine which method is most suitable for your circumstance because each bank has its own requirements and unique forms that you will need to complete.

If you are a business looking to open a bank account, you will need to obtain a bank authorization letter. This letter is a vital document that confirms to the bank that you are authorized to open an account and provide the bank with information about your business. In this guide, we will walk you through the process of writing a bank authorization letter and provide tips on how to ensure it is accurate and compliant with all relevant regulations. We will also provide tips on how to format the letter so that it is easy to read and understand.

How to Write a Bank Authorization Letter?

A bank authorization letter is a written consent from an account holder to a bank manager to allow friends, family, and business partners to make transactions in the account. A party is a person who may have various rights to act on a bank account in relation to bank authorization. An account holder, the bank itself, and the individual or group granted access to an account are all parties in bank authorization.

There are many reasons why you are unable to complete your banking formalities. You can give a trusted person power of attorney to act legally on your behalf and complete your banking paperwork for you. The letter must include your personal information as well as the names, addresses, and surnames of the proxy holders. A photocopy of both sides of the identity cards of the two individuals affected by the power of attorney for banking must be included in your letter. Your mail should be sent via registered mail with an acknowledgement of receipt to your banker at the branch.

How to Write a Bank Authorization Letter

How to Write a Bank Authorization Letter Details?

Scheme How to Write a Bank Authorization Letter
Category How To Guide
Year 2023
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Parties Involved in a Bank Authorization Process

The bank authorization procedure typically involves three parties. The person granting access to their account is the first party, the bank is usually the second, and the person or group granting authority to act on the account is the third.

First party

A person or group that grants permission for a third party to access their accounts is the first party in a bank authorization. In order to gain access to their accounts, the first party writes a letter to the second party. The rights that a third party has should be explain in the authorization letter.


The bank with which the first party has an account typically serves as the second party. A letter of authorization must be sent to the bank by the first party who is the account holder if they want to allow a third party to carry out transactions on their behalf.


In a bank authorization letter, the person or group who has the account holder’s full consent to carry out transactions on their accounts is referred to as the third party. The bank (the second party) holds the first party responsible for the actions of the third party who has been authorize to handle the account on their behalf.

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Purposes of Bank Authorization Letters

An authorization letter may be request by a bank from an account holder as evidence of their consent to allow a specify individual or group to make transactions in the account. The account holder may be require to write the authorization letter for the following common reasons:

  • If you want the bank to give someone else your account statements, you have to write an authorization letter.
  • If you want to close your account, you should send the bank an authorization letter to start the closing process.
  • If an account holder wishes to add or change nominees, they should write an authorization letter.
  • The account holder should then send an authorization letter to the current branch instructing them to transfer the account if they wish to change banks.
  • Sending the bank an authorization letter to open a frozen account is the only way for an account holder to do so.

How to Write a Bank Authorization Letter?

A bank authorization letter is typically written by the first party (the bank’s client) and must clearly define the party authorize to carry out their transactions and/or manage their account for other purposes. In the letter, the author should also state that they fully authorize the third party to sign on their behalf.

Authorized person’s name

  • On a bank authorization letter, the authorize person’s official name should be written by the first party. The name ought to match the name on the individual’s identity document, such as a passport or ID.
  • For instance, I (name of account holder) grant permission to (name of authorize third party) to access my account.

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Identity documents

A copy of the authorize person’s passport and identification should be attaché to the letter. In the letter, the authorize person’s identification and passport number should be clearly state by the first party.


For example,

Identity Document: (Passport number)

Identity Document Number: (ID number)

Authorized person’s signature

For official verification during transactions, a sample of the authorize person’s signature should be attach to the letter.

For example,

Authorize person’s signature: ____________________

Unauthorized transactions

The account holder should list all of the activities that the third party with access to the account should not carry out in the bank authorization letter. The bank considers the first party’s restrict transactions as unauthorize, ensuring that the third party does not act outside of their rights.

For example,

However, I don’t permit (authorize person) to access my (loan statements, fixed deposits, or transfer funds beyond $1000, etc.)

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Start date

In the bank authorization letter, the first party should never forget to include the permission period for a third party. In writing, they should indicate when this permission begins and ends.

For example,

This takes effect starting from; (state the start date).

Tips for Writing a Bank Authorization Letter

To ensure that a bank authorization letter is both reasonable and effective, specific guidelines can be adhere to. The most important things to keep in mind when writing these letters are listen below.

Keep the letter precise and short

A bank’s authorization letter should be brief and specific, stating the reason for the letter’s creation as well as the authorization details of the individual authorize to access the accounts. This is because bank employees only have so much time to read and approve such letters. By following this advice, you can avoid misunderstandings that could arise from a lengthy letter.

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Specify the duties of the responsible person

In the bank authorization letter, one must clearly state the third party’s rights, responsibilities, and duties to ensure security when handing over account access rights. These responsibilities granter to the third party should ideally be highlight in the first paragraph of the bank authorization letter so that the bank understands them first.

Provide time duration/dates of authorization

The period of time during which the third party is permit access to one’s account and the start and end dates must be state in the bank authorization letter. It informs the bank that any unauthorize or malicious transactions the third party may attempt to make on the account before or after the start date are flagger.

Provide proper reason for authorization

It is essential to provide precise justifications for the permission when writing such a letter. In most cases, it is preferable to provide a sufficient explanation to avoid misunderstandings. This could be due to a variety of factors, including illness, travel, and others.

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Describe restrictions

In the bank authorization letter, the account holder must clearly explain to the third party the parts of unauthorized or restrict transactions. If the third party attempts to carry out the aforementioned restrict transactions, this instructs the bank to deny them access.

End with a proper conclusion

The name and signature of the first party should be include at the end of the bank authorization letter, follow by a formal conclusion such as “yours truthfully.”


Bank authorization letter examples include the first, second, and third significant parties. The purpose of the authorization letter is to instruct the second party, which is the bank, to allow the third party to make transactions on the account in accordance with the account holder’s instructions.


How do I write a simple letter of authorization?

The format of an authorization letter should include the date, the name of the person to whom it is addressed, details about the person who has been authorized (such as name and identity proof), the reason for his absence, the duration of the authorized letter, and the action to be performed by another person.

How do I authorize someone on my bank account?

To add an authorized signer to an account, both you and the individual will usually need to go the bank to fill out an application and provide proper identification. There may be other conditions or terms specific to your bank, so it's best to inquire in advance.

What is an example of authorization?

Giving someone permission to download a particular file on a server or providing individual users with administrative access to an application are good examples of authorization.

Can I authorize someone to go to the bank for me?

Most banks won't allow someone not listed on your account to make transactions in your name unless you have given explicit permission. In legal terms, this means granting the person financial power of attorney (FPOA) by signing a legal document stating what transactions the person is allowed to make.

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