How to Write a Bank Authorization Letter

This article was co-authored by Alan Mehdiani, CPA. Alan Mehdiani is a certified public accountant and the CEO of Mehdiani Financial Management, based in the Los Angeles, California metro area. With over 15 years of experience in financial and wealth management, Alan has experience in accounting and taxation, business formation, financial planning and investments, and real estate and business sales. Alan holds a BA in Business Economics and Accounting from the University of California, Los Angeles.

There are 7 references cited in this article, which can be found at the bottom of the page.

This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources.

This article has been viewed 1,012,775 times.

If you'd like to authorize someone else to handle money in your bank account, most banks give several options. You have the option to give the person financial power of attorney and specify which transactions they're allowed to make. Alternatively, you can change your account to give someone else access. Each bank has its own requirements and special forms you'll need to fill out, so it's a good idea to contact your bank directly to find out what method is best for your situation.

Method 1 of 3:

Granting Financial Power of Attorney

A limited FPOA puts a limit on what the person can do with your account. You can authorize them to make a few specific transactions if that's all you want them to do.
If you want the person to have longer-term access to your account, you can grant a durable FPOA. This enables the person to make decisions for you and handle your finances in the event that you become incapacitated.

Either visit your bank in person to speak to an agent, or visit your bank's website to obtain a power of attorney form online.
Fill out and submit the form according to your bank's instructions.

You may want to have a lawyer help you draw up the form to make sure it's legally sound.
The execution of the document must also be done according to your state's laws. Some states require that you have a witness, and others require that you have the document notarized.

Present the document to your bank. Once you have your forms filled out and signed according to the requirements of your state laws, visit your bank and meet with an agent to submit the form and make your intentions clear. Once the form is put on file, the other party will now be authorized to make the transactions you laid out.

Advertisement Method 2 of 3:

Adjusting Your Account

This is not an option in every state. See if your state's laws permit convenience accounts.
Contact your bank to find out whether a convenience account will meet your needs.

In order to add a co-owner, you'll need to fill out forms that are signed by both parties.
Once the forms are completed and submitted, the other person will be granted full access to the account.

You may want to meet with a lawyer to discuss which option is best for your situation. The lawyer may advise you against getting a joint account, and instead recommend getting a durable FPOA. It's a good idea to think it through with an expert before making a decision.
This is especially true if you're considering adding your children to your bank account so they can take care of your bills. Unanticipated problems could arise at a later time, so make sure your finances are well protected. [7] X Research source

Advertisement Method 3 of 3:

Self-Authorizing Someone to Use Your Account

Authorize someone to make a deposit. If all you want to do is allow someone to deposit money in your account, some banks allow people to do this without special authorization. Depending on what bank you use, you may not need to write an official letter or fill out any forms. Contact your bank for more information on its policies regarding third party deposits. [8] X Research source

Authorize someone to make a withdrawal. Giving someone your bank card or account information is a way to self-authorize them to make a withdrawal. However, banks advise against doing this, since you won't have control over how much the person withdraws from your account. Some banks have explicit policies in place to prevent non-account holders from making transactions, so using FPOA or listing the person as a co-signer may be a better bet.

Sample Bank Letter

Community Q&A

How do I write a bank authorization letter to close my account? Community Answer

That's not what a bank authorization letter is for. If you want to close your account, just call or visit your bank and ask to have your account closed.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow

I already have a joint account at my bank now. I want to add one account holder. What can I do? Community Answer

Go to the bank with the person you want added to the account and have him/her bring two pieces of identification to show the bank. They will add the name to the account without having to change the checks if you wish.

How do I remove an old account from a new account to claim the pending funds? Community Answer Contact your bank for specific advice.

Ask a Question 200 characters left Include your email address to get a message when this question is answered. Advertisement

Tips

Submit a Tip All tip submissions are carefully reviewed before being published Please provide your name and last initial Thanks for submitting a tip for review!