How do I write a letter to the bank to change signatories?

To write a letter to the bank to change signatories, you'll need to clearly communicate the updated signing authority for your account, ensuring all necessary details and supporting documents are included. This process is crucial for maintaining proper financial control and compliance.

How Do I Write a Letter to the Bank to Change Signatories?

Writing a letter to your bank to change signatories involves providing clear, formal notification of new signing authorities for an account, often including supporting documentation like a board resolution.

When preparing your letter, remember that its primary purpose is to formally notify the bank of changes to the individuals authorized to operate your account. This is particularly common for business accounts, organizations, or joint accounts where the authorized individuals have changed due to staff rotation, resignation, or other organizational shifts.

Key Information to Include in Your Letter

Your letter must be comprehensive and contain all details the bank requires to process the change efficiently.

• Bank's Details:
  • Bank Name
  • Bank Branch Address
• Your Account Details:
  • Full Account Name (e.g., Company Name, Organization Name)
  • Account Number
  • Account Type (e.g., Chequing, Savings, Business)
• Date: The date the letter is written.
• Subject Line: A clear and concise subject indicating the letter's purpose, such as: RE: Change of Signing Officers for Account [Your Account Number]
• Confirmation of Change: A statement confirming that your organization has recently changed its signing officers on the specified account, effective immediately.
• Details of Old Signatories (if applicable):
  • Full Name
  • Signature (if requested by the bank, though usually not in the letter itself)
• Details of New Signatories:
  • Full Name
  • Designation/Title (e.g., Treasurer, Secretary, Director)
  • Specimen Signature (the bank will typically provide a form for this, or you may need to include it directly if the bank requires it in this letter format).
  • Contact Information (phone number, email)
• Required Action: Clearly state what action you require the bank to take (e.g., "Please update our records to reflect these changes.").
• Enclosures: List any documents you are sending with the letter. This is vital, especially for business accounts, as banks often require formal proof of the change. You will need to enclose a copy of the resolution reflecting this change.
• Authorized Signature: The signature(s) of the current authorized representative(s) of the entity making the change.

Structure of Your Letter

A formal letter typically follows a standard business letter format:

1. Your Organization's Letterhead: (If applicable) Contains your organization's name, address, and contact information.
2. Date: Align to the left or right margin.
3. Bank's Name and Address:
4. Salutation: "Dear Sir/Madam" or "To Whom It May Concern" (if you don't have a specific contact person).
5. Subject Line: Bold and clear.
6. Body Paragraphs:
   • Introduction: State the purpose of the letter and the account it pertains to.
   • Details of Changes: List the old and new signatories.
   • Call to Action: Request the bank to process the changes.
   • Enclosures: Mention attached documents.
7. Closing: "Yours faithfully" or "Sincerely."
8. Your Signature(s): Of the authorized person(s).
9. Your Printed Name(s) and Title(s):

Step-by-Step Guide to Drafting the Letter

Follow these steps to ensure your letter is accurate and complete:

1. Gather All Necessary Information: Collect account details, the full names and titles of both current and new signatories, and the date the change is effective. Ensure you have the resolution approving the change.
2. Use Official Letterhead: If applicable, use your organization's official letterhead for a professional and authentic appearance.
3. Address the Bank Correctly: Use the full legal name of the bank and the specific branch address where your account is held.
4. Craft a Clear Subject Line: This immediately informs the bank of the letter's purpose. For example, RE: Change of Signing Officers for Account [Your Account Number].
5. Write the Opening Paragraph: Begin by stating the confirmation of the change. For instance: "This letter is to confirm that we have recently changed our signing officers on our account no. [Your Account Number] effective immediately."
6. Detail the Signatory Changes: Clearly list the former and new signatories. You can use a table or a clear bulleted list for this.
7. Specify Enclosures: Mention that you are enclosing a copy of the resolution reflecting this change.
8. Request Action and Provide Contact: Clearly ask the bank to update its records and provide a contact number for any queries.
9. Sign Off Formally: Ensure the letter is signed by the appropriate authorized personnel currently listed on the account.

Example Letter Structure

The following table illustrates the typical layout and content for your letter:

Important Considerations

• Bank-Specific Forms: Many banks require specific internal forms to be completed in addition to your letter. Always check with your bank first.
• Board Resolution: For organizational accounts, a formal board resolution or minutes from a meeting authorizing the change is almost always required. Ensure it is properly certified.
• Identification: New signatories will likely need to visit the bank in person with valid identification documents for verification and to provide specimen signatures.
• Processing Time: Allow adequate time for the bank to process the changes. Follow up if you do not receive confirmation within a reasonable period.
• Documentation Retention: Keep a copy of the letter, the resolution, and any bank forms for your records.

By following these guidelines, you can ensure a smooth and effective process for changing signatories on your bank account.