A proof of funds letter looks like a short, formal, one-page document printed on a bank’s official letterhead. It states your full legal name, the current balance of your liquid accounts, the date the balance was verified, and a line confirming the money is available for immediate use. At the bottom, a bank officer signs and prints their name, title, and direct contact information. Many letters also carry an embossed seal or watermark.
What Appears on the Page
Pick up a genuine proof of funds letter and the first thing you notice is the bank’s letterhead across the top: the registered logo, the branch address, and a phone number. That header is not decoration. It is what allows the seller, their agent, or the title company to call the bank directly and confirm the letter is real.
The body runs a few short paragraphs. It identifies you as the account holder, states the balance held, gives the date that balance was verified, and confirms the funds are accessible. No marketing language, no projections, no commentary on your finances beyond what is needed to verify the money is there.
The signature block sits at the bottom. It names the specific officer who authorized the verification, their title (branch manager, relationship officer, or similar), and usually a direct line. Many institutions add a physical security feature such as an embossed seal or watermark to deter forgery.
The Information It Must State
Formatting varies by institution, but the same core elements show up on every valid letter:
- Your full legal name, matching your government-issued identification.
- The account balance, stated in a specific currency, usually U.S. dollars.
- The date the balance was verified. Most sellers expect this date to fall within 30 to 90 days of the transaction.
- An availability statement confirming the funds are accessible for immediate withdrawal or transfer and are not pledged against other obligations.
- The institution’s name, branch address, and direct contact information.
- The printed name, title, and signature of the bank officer who issued the letter.
A letter missing any of these pieces is often treated as incomplete. The verification date is the most time-sensitive: an old date gives the seller no assurance the money is still sitting in the account today.
Which Balances Qualify
The balance printed on the letter has to reflect liquid capital, meaning money you can access quickly without penalties, waiting periods, or third-party approval. The following accounts generally qualify:
- Checking and savings accounts.
- Money market accounts.
- Certificates of deposit, though early withdrawal may carry a penalty.
- Stocks held in taxable brokerage accounts. Since the SEC shortened the standard securities settlement cycle to one business day (T+1) in May 2024, shares can generally be sold and settled faster than before.1SEC.gov. Shortening the Securities Transaction Settlement Cycle
- U.S. Treasury bills, which can be sold before maturity.
Retirement accounts like 401(k)s and IRAs generally do not count toward proof of funds unless you withdraw the money first and deposit it into an accessible account. Early withdrawals often trigger income taxes and a 10 percent penalty if you are under 59½. Real estate, fine art, jewelry, and business equipment are illiquid and will not appear on a valid letter.
This matters for how the letter looks: if you see retirement balances, home equity, or other illiquid holdings included in the total, the letter is unlikely to satisfy a seller looking for accessible cash.
How to Spot a Legitimate Letter vs. a Red Flag
The document’s appearance is what signals whether it is genuine. Several markers stand out on a legitimate letter:
- It is printed on official bank letterhead with a logo, address, and phone number the recipient can call.
- It names a specific bank officer, not just “the bank” or “our team.”
- It carries a physical signature, not a typed name alone.
- It often includes an embossed seal or watermark.
- The issuer is a regulated institution that actually holds your money — a commercial bank, credit union, or brokerage firm.
A letter that arrives on plain paper, lacks contact information, or has no identifiable officer should be treated as a red flag. So should a letter from a financial advisor, accountant, or attorney who does not hold the funds themselves. The issuer must be able to independently verify the balance from its own records, which means it needs to be in direct possession of the money.
Electronic Verification
Paper letters are increasingly supplemented by electronic verification tools. Services like Plaid and similar third-party APIs connect directly to a bank’s system and pull account balances in real time. Some sellers and title companies now accept these digital verifications, particularly in fast-moving markets. Others still prefer a signed letter on official letterhead, so check what your specific transaction requires before relying on electronic verification alone.
Bank Letter vs. Statements and Screenshots
A signed letter on bank letterhead is the standard, but some sellers accept alternatives that look different from the classic one-page letter:
- Recent official bank statements showing your balance, account number (at least the last four digits), and the statement period. Fannie Mae’s guidelines for mortgage verification accept bank statements as long as they clearly identify the financial institution, the borrower as the account holder, and the ending balance.2Fannie Mae. Verification of Deposits and Assets
- Certified financial statements prepared by a CPA, which may be accepted for commercial transactions.
- Official investment account statements from a brokerage showing liquid holdings.
Screenshots of online banking portals are generally not accepted. They lack institutional branding, are easy to manipulate, and cannot be independently verified. If you supply statements in place of a letter, redact sensitive information carefully. Show only the last four digits of your account number, use consistent redaction marks so the document clearly looks intentionally redacted rather than damaged, and make sure the redaction method permanently removes the underlying data. A black box drawn over text in a PDF editor often leaves the original numbers accessible through copy-and-paste. Do not over-redact, though; removing transaction history or the institution’s name may cause the document to be rejected.
How to Get One That Will Be Accepted
Contact your bank, credit union, or brokerage through their online portal or a local branch. You will typically need to provide your identification, the full legal name of the recipient (the seller, title company, or other party), your delivery preference, and how much of the balance to disclose. You can usually choose whether to show your full account balance or only confirm you hold at least a specific minimum amount. Showing just enough to cover the purchase price is a common approach that satisfies the seller without revealing your total wealth.
Most banks produce the letter within one to two business days. Some charge a small fee, typically $10 to $25, while many issue the first letter at no cost. If your transaction drags on and the verification date starts to age, request a fresh letter. A current date is one of the details a careful seller checks first.