Client Account interest policy for client monies held in client bank accounts
Updated: December 2018
- Designated Deposit Account
- General Client Account - Client monies will normally be held in general client bank accounts, in which amounts for different matters and clients are pooled.
- Interest will not be paid to you in the following circumstances:
If client monies are held in a separate designated deposit account (i.e. a specific bank account, for a specific matter) all interest earned on that account will be credited to that bank account and paid to the client in full (subject to any applicable withholding tax).
- if the total amount of interest calculated over the course of a transaction is less than £20, no interest will be paid;
- no Interest will not be paid on money held for the payment of a professional disbursement, if counsel etc. has requested a delay in settlement;
- on any advance from us to you in our general client account to fund a payment on your behalf;
- other than as may be required by the rules of professional practice; or
- if there is an agreement between us to contract out of the payment of interest.
A sum in lieu of interest will be payable (subject to any applicable withholding tax) on amounts held in general client bank accounts on the following basis:
- Interest will be calculated daily on the balance held for each individual matter, and compounded on a six monthly basis, and paid to you when the matter has been concluded.
- client monies will normally be held in an instant access bank account to facilitate transactions, however if specific instructions are received from the client requesting that funds be placed on a term deposit, interest earned on such term deposits shall be paid to the client in full
- the period between the date when the relevant funds were first received by us and clear into client account;
- if we send funds electronically, the date when the funds are sent; or
- if we send funds by cheque 5 days after a cheque is raised.
When funds are held in a separate designated client account, interest is usually paid net of tax unless you have signed a declaration confirming your entitlement to receive bank interest gross.