Interest Policy
Client Account Interest Policy
We are required by the Solicitors Regulation Authority’s Accounts Rules 2019, to pay our clients interest on money held by us in our client account when it is fair and reasonable to do so.
The holding of client money is incidental to the carrying out of the client’s instructions. Client monies will normally be held in our general client account, held with Barclays, in which amounts for different clients and matters are pooled. We are required to hold client monies in an ‘Instant Access’ account as client monies must be available immediately and clients are unlikely to receive as much interest had they held and invested the money themselves.
Interest due on a matter accrues once client funds have been received and cleared. Routinely the Bank takes around 5 working days to clear cheques that we receive including business account cheques. Interest is not at any time payable on uncleared funds.
Interest will be payable on amounts held in our general client account on the following basis:
- Interest will be calculated quarterly on the balance held for each individual matter.
- If the total amount of interest calculated is less than £50, then no interest will be payable due to the administrative costs involved.
- In calculating the interest, we will apply a rate that reflects the current market rate of interest paid on an instant access business account offered by a high street bank.
- Interest will be paid without any deduction of tax and clients are responsible for notifying HMRC of any interest received from us.
If the bank in which the firm holds funds should fail, the firm reserves the right to disclose to the FSCS the names and other details of clients whose money is held on the general client account in order for the client to claim compensation, the limit of which is currently £85,000.
