What Is a Banking Authorization Letter?

A banking authorization letter gives permission to a third party to act on the behalf of the author in regards to actions associated with the specified bank account. Authorization letters usually allow authorization for a short, temporary amount of time, specified in the letter.

Banking authorization letters are used when the account holder cannot personally appear in the bank. The authorization letter authorizes the third party, usually a spouse, sibling or other family member, to use the account.

Authorization letters should be typed because they can be considered legal documents. Important and sensitive personal information should be included to allow full authorization to the specified third party.