Writing a Simple Bank Account Authorization Letter (Free Templates)

Whether you’re delegating someone to manage your bank account temporarily or granting ongoing access, crafting a clear and concise bank account authorization letter is crucial. This guide will walk you through the process and provide three unique templates to ensure your letter is professional and legally sound.

Key Takeaways

  • Purpose of Authorization Letter: Delegating account management.
  • Essential Elements: Date, account details, authorized person’s info, duration, and signature.
  • Format and Tone: Clear, formal, and concise.
  • Legal Considerations: Notarization if required by the bank.
  • Templates Provided: Temporary authorization, permanent authorization, and third-party access.

Understanding the Purpose





An authorization letter is a formal document that grants permission to another person to perform specific actions on your behalf. In the context of a bank account, this might include accessing account information, conducting transactions, or managing the account temporarily.

Essential Elements of an Authorization Letter

  1. Date: The date when the letter is written.
  2. Account Details: Your bank account number and branch details.
  3. Authorized Person’s Information: Full name, address, and identification details of the person you are authorizing.
  4. Scope of Authorization: Specific permissions you are granting.
  5. Duration: The period for which the authorization is valid.
  6. Your Signature: Sign the letter to validate it.

Steps to Write a Bank Account Authorization Letter

  1. Start with a Formal Greeting: Address the letter to the relevant bank authority.
  2. State the Purpose: Clearly mention that you are authorizing someone to act on your behalf.
  3. Include Detailed Information: Provide all necessary details about yourself, the authorized person, and your bank account.
  4. Specify the Scope and Duration: Clearly define what actions the authorized person can perform and for how long.
  5. Close Formally: End with a formal closing and your signature.

Example List of Essential Elements

  • Date
  • Account Number
  • Bank Branch Details
  • Authorized Person’s Full Name
  • Authorized Person’s Address
  • Scope of Authorization
  • Duration of Authorization
  • Signature

Personal Tips from Experience

  1. Be Specific: The more specific you are about the permissions and duration, the better. This avoids any potential misunderstandings.
  2. Verify Requirements: Some banks may require notarization. Always check with your bank to understand their specific requirements.
  3. Keep a Copy: Always keep a signed copy of the letter for your records.

Template 1: Temporary Authorization


[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

[Bank Name]
[Bank Address]
[City, State, ZIP Code]

Dear [Bank Manager’s Name],

I, [Your Name], holding account number [Your Account Number] at [Bank Branch Name], hereby authorize [Authorized Person’s Name], residing at [Authorized Person’s Address], to access and manage my bank account from [Start Date] to [End Date].

This authorization includes the following permissions:

  • Viewing account balance and transaction history
  • Depositing and withdrawing funds
  • Managing online banking services

Please contact me at [Your Phone Number] for any verification or further information.

Sincerely,
[Your Signature]
[Your Printed Name]


Template 2: Permanent Authorization


[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

[Bank Name]
[Bank Address]
[City, State, ZIP Code]

Dear [Bank Manager’s Name],

I, [Your Name], am writing to authorize [Authorized Person’s Name], residing at [Authorized Person’s Address], to have permanent access and management rights over my bank account number [Your Account Number] at [Bank Branch Name].

The authorized person is permitted to:

  • View account statements and transaction history
  • Deposit and withdraw funds
  • Manage all banking services associated with my account

Please update your records to reflect this authorization.

Thank you for your assistance.

Sincerely,
[Your Signature]
[Your Printed Name]


Template 3: Third-Party Authorization


[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

[Bank Name]
[Bank Address]
[City, State, ZIP Code]

Dear [Bank Manager’s Name],

I, [Your Name], holding account number [Your Account Number] at [Bank Branch Name], authorize [Third-Party’s Name], representative of [Third-Party’s Company Name], to access and manage my bank account for the purpose of [specific purpose] from [Start Date] to [End Date].

Authorized actions include:

  • Viewing and printing account statements
  • Depositing funds
  • Any other necessary transactions related to the specified purpose

Please feel free to contact me at [Your Phone Number] for any clarification.

Thank you.

Sincerely,
[Your Signature]
[Your Printed Name]


Real-Life Example

I once had to authorize a close friend to manage my bank account while I was abroad for an extended period. I made sure to specify the exact dates of the authorization and listed the actions he could perform. This clarity helped avoid any issues and ensured smooth handling of my financial matters.

Table: Key Differences Between Templates

AspectTemplate 1: TemporaryTemplate 2: PermanentTemplate 3: Third-Party
DurationSpecified temporary periodOngoingSpecified temporary period
Authorized PersonIndividualIndividualThird-party representative
Scope of AuthorizationLimited to specific actionsComprehensiveSpecific to third-party purpose

Final Thoughts

Writing a bank account authorization letter doesn’t have to be complicated. By following the steps outlined in this guide and using the provided templates, you can create a clear and effective authorization letter tailored to your needs.

Frequently Asked Questions (FAQs)

Q: What is a bank account authorization letter? 

Answer: A bank account authorization letter is a document that grants another person the authority to access and manage your bank account. I’ve had to write several of these for my business, ensuring my assistant can handle transactions when I’m unavailable.

Q: Why might I need to write a bank account authorization letter? 

Answer: You might need to write a bank account authorization letter if you’re traveling or incapacitated and need someone trustworthy to manage your finances. I found this especially useful when I had to delegate banking tasks to a colleague during an extended business trip.

Q: What should be included in a bank account authorization letter? 

Answer: A bank account authorization letter should include your personal details, the authorized person’s details, the scope of authorization, and your signature. When I wrote mine, I made sure to specify the exact actions my assistant could perform to avoid any misunderstandings.

Q: How do I ensure my bank account authorization letter is legally valid? 

Answer: To ensure your bank account authorization letter is legally valid, you should have it notarized and verify it meets your bank’s specific requirements. I always consult with my bank’s representative to confirm I’m following their guidelines precisely.

Q: Can a bank account authorization letter be revoked? 

Answer: Yes, a bank account authorization letter can be revoked by writing a formal revocation letter to the bank. I had to revoke one when my circumstances changed, and it was as simple as notifying my bank in writing.

Q: How long does a bank account authorization letter remain in effect? 

Answer: The duration of a bank account authorization letter depends on the specified period or until it is revoked. In my case, I usually set a clear expiration date to avoid any indefinite authorizations.

Q: Is it necessary to inform the authorized person before writing the letter? 

Answer: Yes, it is crucial to inform the authorized person and get their consent before writing the letter. I always have a detailed discussion with the person I’m authorizing to ensure they are comfortable and understand their responsibilities.

Q: Can I authorize more than one person with a bank account authorization letter? 

Answer: Yes, you can authorize more than one person, but it’s essential to specify each person’s responsibilities clearly. I’ve done this for my business by outlining distinct roles for each authorized individual to prevent any overlap or confusion.

Q: What are the potential risks of writing a bank account authorization letter? 

Answer: The risks include misuse of the account and unauthorized transactions, so it’s crucial to choose a trustworthy person. I mitigate these risks by regularly monitoring account activity and setting clear boundaries in the letter.

Q: Do all banks accept bank account authorization letters? 

Answer: Most banks accept bank account authorization letters, but their requirements can vary. I always check with my bank beforehand to ensure I meet all their criteria and avoid any issues.