How Does a Person Write a Bank Authorization Letter?

A bank authorization letter gives a third party permission to do banking on behalf of an account holder. The letter should be formally written and should include an explanation for the authorization, in addition to details of the third party.

Before writing an authorization letter, it is important to find out the specific policies of the account holder's bank. The bank might require forms to be filled out rather than a letter.

If an authorization letter is required, it should be typed. The tone of the letter should be polite, professional and businesslike. And it should get to the point and be succinct.

The full name, address and telephone number of the account holder should be at the top of the letter. The bank account number should also be listed for ease of reference.

The start of the letter should explain what is required. The name and details of the third party who is getting access to the account should be outlined clearly. There should also be clear instructions as to what actions this third party should be allowed to take. For example, should the person just deposit funds, or should they also be able to withdraw funds or do something else? A brief but full explanation should also be given as to why the authorization is required.