Interest on solicitor's client account

Discussion in 'UK Finance' started by Zarbol Tsar, Nov 18, 2004.

  1. Zarbol Tsar

    Zarbol Tsar Guest

    Approximately what rate of interest would be paid on the money held
    by a UK solicitor in a client account?

    The amount of money is about £50,000 and the period is about two
    weeks (although this could turn out to be longer).

    Thank you for any info.
     
    Zarbol Tsar, Nov 18, 2004
    #1
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  2. 2.27% Gross AER. (Natwest)

    Might be easier to look it up next time though - rates are publicly posted
    on every banks site!

    MC
     
    Marcus Collie, Nov 18, 2004
    #2
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  3. Zarbol Tsar

    Daytona Guest

    Try uk.legal / uk.legal.moderated or the Law Society.

    Daytona
     
    Daytona, Nov 18, 2004
    #3
  4. Why? It is clearly a financial question!

    (Just in case you are unaware, a 'client's account' is a special type of
    deposit acct offered by banks to solicitors to hold cash on behalf of their
    clients. There are particular restrictions to their use, hence why
    solicitors have to use them rather than normal deposit accounts, though
    these restrictions are set by the law society, and only applied in good
    faith by the banks)

    MC
     
    Marcus Collie, Nov 18, 2004
    #4
  5. (though I should point out that clients accounts generally have a lot more
    than £50,000 in total deposited in them. )
     
    Marcus Collie, Nov 18, 2004
    #5
  6. I suspect the OP was referring to a different type of 'client account',
    namely not the account kept for the solicitor with the bank, but that
    kept for the client with the solicitor. I suspect the OP is a client
    and has lodged or will lodge funds temporarily with a solicitor, and is
    asking about how much interest *he the client* will get on these funds.

    The question then boils down to how much of the interest the bank pays
    the solicitor will be passed on to the client (none of it), and how much
    will be used to line the solicitor's pockets, or, as they would put it,
    "to help defray the costs of the not inconsiderable effort required to
    comply with the highly complex rules governing how client funds are to
    be kept" (all of it).

    Humphrey would be proud.
     
    Ronald Raygun, Nov 18, 2004
    #6
  7. I suspect you haven't read Marcus's reply properly Ronald, that's
    exactly what he said.
    No no, there are strict rules, £50 for a month, £10K for a week, £100K
    for two days (or whatever) triggers an interest repayment to the client.
    Interest on the Client Account used to be a very lucrative perk for the
    solicitor, now it is *way* more trouble than it is worth.



    --
     
    Troy Steadman, Nov 19, 2004
    #7
  8. Zarbol Tsar

    Daytona Guest

    Because, as I suspected, there are Law Society rules governing when
    interest is payable and lawyers are more likely to know, also there
    are different types of client account.

    Daytona
     
    Daytona, Nov 19, 2004
    #8
  9. Zarbol Tsar

    Zarbol Tsar Guest


    I am the OP. That is the sort of information I was looking for.

    Does anyone have a link to where I can read up the actual rules for
    calculating interest on client accounts?
     
    Zarbol Tsar, Nov 23, 2004
    #9
  10. Zarbol Tsar

    Bob Guest

    www.lawsociety.org.uk
    click on search
    enter "interest"
    the last search result on the page refers to Annex 28B - Solicitors'
    Accounts Rules 1998 which contains the rules on interest payments

    Bob
     
    Bob, Nov 23, 2004
    #10
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