Interest on solicitor's client account


Z

Zarbol Tsar

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.
 
M

Marcus Collie

Zarbol Tsar said:
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.
2.27% Gross AER. (Natwest)

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

MC
 
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D

Daytona

Zarbol Tsar said:
Approximately what rate of interest would be paid on the money held
by a UK solicitor in a client account?
Try uk.legal / uk.legal.moderated or the Law Society.

Daytona
 
M

Marcus Collie

Daytona said:
Try uk.legal / uk.legal.moderated or the Law Society.

Daytona
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
 
M

Marcus Collie

Marcus Collie said:
2.27% Gross AER. (Natwest)

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

MC
(though I should point out that clients accounts generally have a lot more
than £50,000 in total deposited in them. )
 
R

Ronald Raygun

Marcus said:
(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)
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.
 
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T

Troy Steadman

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.
I suspect you haven't read Marcus's reply properly Ronald, that's
exactly what he said.
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),
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.



--
 
D

Daytona

Marcus Collie said:
Why? It is clearly a financial question!
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
 
Z

Zarbol Tsar

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.

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?
 
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B

Bob

Zarbol Tsar said:
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?
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
 

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