Guides

What Is a Bank Certificate? Account Letter vs Certificate of Deposit

“Bank certificate” can mean two different things:

1. An official document from your bank confirming facts about your account, such as who owns it, that it’s open, or its balance on a certain date. This is usually what an embassy, school, employer, or auditor means when they ask you for a bank certificate.
2. A certificate of deposit (CD), a savings account that pays interest for a fixed term. Banks and credit unions often call these “certificates,” so some people say “bank certificate” when they mean a CD.

If someone asked you to provide a bank certificate, they almost certainly mean the first. If you’re comparing savings rates, you’re looking for the second.

Bank certificate as an account document

In this sense, a bank certificate is a letter or form issued by your bank and signed or stamped by a bank employee. Depending on its purpose, you may see it called:

• A bank confirmation letter
• A certificate of balance or balance confirmation
• An account verification letter
• A bank reference letter
• A certificate of account ownership

Names vary by bank and country. US banks often just call it a letter, while in many other countries it’s a standard document with a standard name. In Spain, for example, a certificate confirming who holds an account is called a certificado de titularidad. For more Spanish banking terms, see bank statement in Spanish.

What a bank certificate usually includes

• The bank’s name and contact details, on letterhead
• The account holder’s full name
• The account type and number, sometimes partly masked
• The date the account was opened
• The balance on a specific date, if requested
• Confirmation that the account is open, if requested
• The issue date, plus the name, title, and signature of the employee who issued it

Some recipients want the certificate addressed to them by name or want the balance stated in a particular currency. Others ask for an average balance over several months. Tell your bank exactly what’s needed.

When a bank certificate is requested

• Visa and study applications. Embassies and schools may ask for proof that you can cover your costs. Some accept bank statements, while others ask for a letter or certificate from the bank.
• Setting up payments. Employers, clients, and government agencies sometimes ask for a letter confirming you own an account before they send money to it.
• Audits. Auditors often confirm a company’s balances directly with its bank.
• Large purchases. A home seller may ask for a letter confirming your balance, usually called a proof of funds letter.
• Estates and legal matters. Executors, attorneys, and courts may need a balance confirmed as of a specific date, such as the date of an account holder’s death.

Bank certificate vs bank statement

If the requester will accept either, a statement is usually faster and free. A certificate is the better choice when they need something a statement doesn’t show, such as today’s balance, or when you’d rather not share your transactions. For what a statement contains, see what is a bank statement.

How to request a bank certificate

1. Get the requirements in writing. Ask what the certificate must say, whom it should be addressed to, how recent it must be, and whether it needs a signature, a stamp, or notarization.
2. Contact your bank. Branches handle most of these requests. Some banks also accept them by phone or by secure message in online banking.
3. Bring ID and your account details. The bank needs to confirm you’re the account holder.
4. Ask about time and cost. Some banks issue letters while you wait, others take a few business days, and some charge a fee.
5. Check it before you submit it. Names, account numbers, amounts, and dates should all be correct. If anything is wrong, ask the bank for a corrected version. Never edit a bank document yourself; altering one is fraud.

If the certificate is for use abroad, the receiving authority may also require a translation or additional authentication. Check its instructions before you visit the bank.

Certificate of deposit: the other “bank certificate”

A certificate of deposit is a savings account, not a document. You deposit money for a set term, such as six months or five years, and the bank pays interest, usually at a fixed rate. If you withdraw before the term ends, you usually pay an early withdrawal penalty. Credit unions offer the same product, usually called a share certificate.

CDs at FDIC-insured banks are protected by deposit insurance up to the standard limit of $250,000 per depositor, per insured bank, for each account ownership category. Share certificates at federally insured credit unions have the same coverage through the NCUA.

Your CD appears on bank statements like your other accounts, either on its own statement or combined with others, depending on the bank. If you need proof that a CD exists, for example as part of proof of funds, ask the bank for a recent statement or a letter for that CD.

Which one do you need?

• Asked to provide a bank certificate for a visa, a job, an audit, or a purchase: you need an account document from your bank.
• Looking for a fixed rate on savings: you’re looking for a CD.
• Asked for bank statements: send your regular statements, not a certificate.

If you need to work with the transactions on your statements, for example to total deposits for an application, our converter exports PDF statements to Excel or CSV.