If you have never requested a Bank reference letter before, it can be difficult to know how to get one and what to include.
It must include your name, identification number, address, indicate how long you have had an account at the bank and be written on the official letterhead of the bank. If you are opening a new account, it is common for banks to request a bank reference letter. And while bank reference letters may seem like an outdated practice, they can actually be your golden ticket to unlocking valuable international bank accounts.
What have to appears in the bank reference letter?
Unfortunately, most banks have unique requirements when it comes to receiving bank reference letters. So while there are similarities, it's hard to predict exactly what each bank wants a bank reference letter to include.
Certain banks are very strict about what should be included, who it is addressed to, signed and how it is delivered. Some banks will even have specific requirements on how letters are signed. That's why it's always smart to ask the applicant bank to confirm your exact requirements before getting the letter.
There are many differences in bank reference letters, there are also some similarities.
Account Holder Information
• Full Legal Name of Account Holder
• Account Holder Address Government Issued Identification Number
• Duration of Relationship with Issuing Bank
• Average Monthly Balance or Current Balance on Deposit
Bank reference letter from the Company
If you obtain a bank reference letter on behalf of a company, you will also need to include the standard corporate information.
• Legal name of the company
• Incorporation number
• Registration country Registered address of the company
Issuing bank information
• Name of issuing bank
• Issuing bank address
• Name of account administrator or responsible party
• Contact information of account administrator or responsible party
How to get the bank reference?
Requests for bank reference letters are very common. In many banks, it is considered a standard service they provide to their account holders. First of all, to get a bank reference letter, you must first confirm the requirements of the applicant bank.
Then, you should contact your account manager with the application. If you do not have an account manager, you should contact your bank's customer service channel and ask for instructions.
In some countries, banks allow third parties to request bank reference letters directly. In these cases, a consent form signed by the account holder is needed and must accompany the application. This is common in places like the UK, where bank reference letters are used for non-banking activities, such as background checks for rental contracts.
Errors to avoid in bank reference letters
In most cases, communication is poor and account holders do not confirm with the requesting bank what the bank reference letter should actually include. Instead, they only ask for a standard letter issued by the bank.
Then that letter is rejected altogether or they must request a second letter. This is an easy problem to avoid, which can save you time and money. For example, simply ask the requesting bank to provide you with a list of the specific information that should be included in the letter.
The format is also indispensable, some banks have very strict criteria for bank reference letters. If your letter does not meet your criteria, your letter will be rejected. This may include small details of the color of the letter, whether the letter is addressed to the bank or a specific person at the bank, delivered electronically or in a sealed envelope.
Sometimes it is not enough to have an account in the bank, some policies require having a minimum of time to request references.