TL;DR: A bank letter is a custom document from your bank that confirms account details for loans, deposits, or proof of funds. Unlike a statement, it’s created upon request for specific needs. Learn how to request one efficiently and when a more advanced instrument like an SBLC may be required.
- A bank letter verifies account status, balance, or other financial details
- It differs from a standard bank statement
- Common types include bank verification letters, proof of funds, and direct deposit letters
- To obtain a bank letter, contact your bank and specify your needs
- AltFunds Global can help with larger financial instruments like SBLCs
When applying for a loan or verifying your financial standing, you may be asked to provide a bank letter.
What is a bank letter, and how do you request one?
Simply put, bank letters are formal documents issued by your financial institution. They help formally confirm specific details about your account or banking relationship.
Bank letters are widely used by both individuals and businesses. They may be necessary to fulfill compliance requirements or confirm your financial status. Understanding their purpose can help you navigate these requests without stress.
Continue reading to learn more, including how to obtain a bank letter quickly and easily.
What Is a Bank Letter?
A bank letter is an official statement from a financial institution that verifies information about an account holder.
It typically includes details such as:
- Official bank letterhead with contact information
- Date of issuance
- Name of account holder(s)
- Account number (often partially masked)
- Account type and status (active, closed, etc.)
- Requested financial details (e.g., balance, history)
- Authorized bank officer’s signature or seal
The information included can vary somewhat depending on the purpose of the bank letter. If you’re submitting the letter to a third party, be sure the information aligns with their documentation requirements. That’s key to avoiding delays.
Is a Bank Letter the Same as a Bank Statement?
No. A bank letter is not the same as a bank statement. A bank statement is a routine summary of account activity. In contrast, a bank letter is custom-prepared upon request. A bank letter might be required when you need to prove your account standing or verify your funds.
Common Types of Bank Letters
Banks issue different types of letters based on the information being verified. Here are a few of the most common.
Bank Verification Letter
A bank verification letter confirms that a person or business maintains an active account with a given institution. It may include account opening date, current balance, or average balance history.
This type of bank letter is often used for:
- Rental applications
- Government benefit verification
- Loan prequalification
- Vendor or client onboarding
Proof of Funds Letter
A proof of funds letter verifies that the account holder has sufficient funds available for a particular transaction. It’s most often used in real estate, mergers, or large purchases.
Bank Letter for Direct Deposit
Employers or agencies may request a letter from the bank to confirm account details before initiating direct deposit.
This letter typically includes:
- Account holder name
- Account number
- Routing number
- Bank’s contact information
Custom Bank Letters
In some cases, letters may be tailored to certify specific assets, relationships, or purposes. For example, international business transactions or regulatory filings may require custom letters.
How to Get a Bank Letter
The process of getting a bank letter is generally straightforward. Follow the steps below.
- Contact Your Bank. Visit a branch, call customer service, or log into your online banking platform to request a letter. Some banks offer templates or request forms.
- Specify the Purpose. Clearly explain why you need the letter and what information it must contain. Providing a sample or template from the requesting party can help ensure accuracy.
- Verify Authorization. Make sure your name matches the account and that you have the authority to request documentation. Business accounts may require signatory confirmation.
- Allow Processing Time. Depending on the bank, letters can be issued immediately or within 1 to 2 business days. It may take longer for complex or custom requests.
Tips for Requesting a Bank Letter Smoothly
- Plan ahead: Some letters may take time to process.
- Be clear: Include exactly what the letter should verify.
- Double-check details: Accuracy avoids rework or delays.
- Ask for a PDF or physical copy: This can streamline the submission process.
Need Help Securing More Than Just a Bank Letter?
Larger financial goals often require more advanced tools. For example, you might require a standby letter of credit (SBLC) in addition to a bank letter. At AltFunds Global, we help clients secure institutional-grade credit enhancements for large transactions.