Client Account Interest Policy

Under the provisions of the Solicitors Regulation Authority’s Solicitors Accounts Rules 2019, we are required to account to our clients for 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 client’s instructions. In addition, we are required to hold client money in an ‘Instant Access’ account to facilitate transactions. As a result, the rates of interest paid under this policy is low.
Interest will be calculated on a daily basis on cleared client funds. In the case of cheques received, this will be 6 days after the cheque has been deposited with our bank, and for amounts received in cash, or via credit or debit card, standing orders, BACS and CHAPS, interest will accrue from the day of receipt into our client account.
Interest will be paid where the amount calculated on the balance held exceeds £50 and we have retained that money for more than 14 days.
Clients may contract out of receiving interest by signing a written agreement with the firm.
In the event that the calculated total interest accruing to a client for the duration of a matter is less than £50 or the funds have been held for 14 days or less then no interest will be paid to the client. The firm takes the view that any amount below £50 or interest on client funds held for 14 days or less is reasonably retained by the firm to cover the administrative cost of dealing with client funds.
Where money is held in relation to separate matters for the same client, we will treat the matters separately, unless the matters are so closely related that they should be considered together. We will calculate the interest due to a client using the rates of interest payable by Nat West on their “Client Deposit Manager” (for the current interest rates please see https://www.natwest.com/business/savings/client-deposit-manager.html).
Where client monies are held in our general client account, we will pay interest without deducting tax at source. Our clients will be responsible for declaring any interest to HM Revenue & Customs. Where your money is held on a designated client deposit account, any interest paid to you is paid without any deduction for income tax (unless you are resident overseas). As such it is your responsibility to inform HMRC of amounts of interest received from us and the implications of this will depend upon your own financial circumstances.
The Financial Services Compensation Scheme (FSCS) provides protection for deposit holders in the event that a UK-authorised bank, building society, or credit union fails. The scheme covers eligible deposits up to £85,000 per person, per financial institution. For joint accounts, each account holder is protected up to this limit individually, meaning a joint account can have total coverage of up to £170,000.
FSCS protection applies automatically and does not require registration. If a financial institution fails, the FSCS aims to return covered funds within seven days. However, coverage is based on the total amount held across all accounts with the same institution, including different brands operating under the same banking licence.
For temporary high balances, the FSCS offers additional protection of up to £1 million for up to six months. This applies in cases such as property sales, inheritance, compensation payments, or insurance claims. Deposit holders must provide evidence of the source of funds to claim this extended protection if needed.
To mitigate the risks associated with a service disruption (e.g., computer systems outage or a cyber related attack) which may impact the ability of our primary bankers (Nat West Bank) to honour our payment obligations, the firm may establish additional contingent banking facilities which comply with our own regulatory obligations, outlined in the Solicitors Regulation Authority (SRA) Accounts Rules.
In the event of a bank failure, involving any of our banking providers, we will calculate the percentage of total funds held with each bank and apply this weighing accordingly. (E.g., Should the failed bank hold 10% of our total client balances, this weighting would be applied equally to all client ledgers). We will support our clients with any claims against the Financial Services Compensation Scheme Purposes (FSCS).
We are required to notify the SRA if we breach the SRA Accounts Rules 2019, including the rules relating to payment of interest. If you suspect that we have breached this policy, please report your concerns to Our Accounts Manager, Gemma Smyth.
Please contact us if you have any concerns about this arrangement.