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When do you use the above?
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Hi,

I use 'Yours sincerely' when I write a business letter on paper. Rarely on an email.

I never use 'Yours faithfully'.

Best wishes, Clive
Comments 
When addressing somebody by name (eg. Dear Mr Smith) then use 'yours sincerely' at the end of the letter. If you don't know who you are adressing (eg. Dear Sir/Madam) then use 'yours faithfully'.

S
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Hi,

Where you live, do you get a lot of letters that use 'Dear Sir / Yours faithfully'?

Here in Canada, I don't.

Best wishes, Clive
I think your answer is the most accurate one here for this topic.[Y]
Here is Britain the Dear Sir / Yours faithfully combination is a standard. I back up the previous person's statement, I was a secretary for years.
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I was told that when you are writing a business letter to someone you have a business relationship with then you should use 'yours faithfully', as an expression of your committment to the business relationship. You then use 'yours sincerely' for letters where there is no business relationship (contract) and the recipeint is relying on your sincerity as to the message being conveyed.

Anyone agree?
Hi.
Anonymous was told that when you are writing a business letter to someone you have a business relationship with then you should use 'yours faithfully', as an expression of your committment to the business relationship. You then use 'yours sincerely' for letters where there is no business relationship (contract) and the recipeint is relying on your sincerity as to the message being conveyed.Anyone agree?
Sorry, I strongly disagree.

See this thread: "Closing a letter "
TanitThe 'traditional' rule (for formal letters) is as follows:
1. if you don't know the name of the recipient,
start with "Dear Sir or Madam"
end with "Yours faithfully"
2. if you now the name of the recipient,
start with "Dear Mr (or Mrs, or Miss) + surname"
(eg. Dear Miss Jones)
end with "Yours sincerely"

That said, use these only if you're writing a formal letter as a part of an ESL exam (other than the TOEFL). "Yours faithfully" seems to be no longer in fashion.