Most client money is held in this account. We do not usually set up separate designated client accounts (SDCA) for our clients. In the unusual event that we agree to set up a SDCA we will inform you in writing of the applicable terms which will be dealt with on a case by case basis.
For money which we hold on your behalf in our general client account, we will pay interest as follows:
- Interest will be calculated on the balance held for each individual matter, and compounded on an annual basis;
- We will normally calculate and pay interest once the matter has concluded or in the January following the period of 12 months from the date the funds are deposited and in each subsequent January thereafter until the matter has concluded; and
- The amount of interest we pay will be 0.5% below the interest rate that we receive on our general client account held at National Westminster Bank Plc.
- We will not calculate and pay interest on any amount that is held for less than 14 days (from the date that we received cleared funds) unless otherwise agreed in writing.
- Subject to point 4 above, we calculate interest over the whole period that we hold the funds, starting from the date that the funds are treated as cleared funds, save that we will not pay interest on cleared funds of less than:
- £1,000 for a period of 8 weeks after receipt
- £5,000 for a period of 4 weeks after receipt
- £10,000 for a period of 2 weeks after receipt
- £20,000 for a period of 1 week after receipt
- Unless we are notified by our bank to the contrary, we will treat money as cleared funds as follows:
- Cheque – 3 working days after the money has been paid into our client account
- Debit or Credit Card – the date of actual receipt into the account
- Bank Transfer – the following working day
We will not pay interest:
- On money we are instructed to hold outside a client account in a way that does not attract interest, e.g. cash held in our safe.
- Where the amount of interest, calculated in accordance with this policy, is less than £100 – on the basis that the costs associated with paying that interest are disproportionate to the amount involved.
- Where we come to a different arrangement, in writing, with the client or third party for whom the money is held – where we do so, we will provide sufficient information to enable the client or third party to give informed consent.
- On money held for the Legal Aid Agency.
- Where we have paid money to you by cheque and you delay in paying the cheque into your bank.
Interest on money held in our general client account or in an SDCA will be paid before deduction of tax. It will be the recipient’s responsibility to declare interest received to HMRC.