As part of carrying out your instructions to us, we may need to hold your money in our client account. In holding client’s money, we have an obligation to pay interest on that money at a fair and reasonable rate. This policy sets out the guidelines for when interest will be paid and is summarised below.
We aim to account to you for interest at a reasonable rate of interest, however as the holding of your funds is incidental to the carrying out of your legal instructions, the rate is unlikely to be as high as the rate you may be able to obtain when depositing the money we hold on your behalf for yourself. We must ensure that money held on client account is available immediately and the need for instant access is taken into account when setting the rate of interest payable by us.
We align our interest rates on monies held on general client account to the Barclays Clients’ Premium Account interest rate. Interest is calculated on all balances held in client account subject to the minimum interest limit set out below.
Where your money is held on our client account interest paid to you is paid without any deduction of income tax. As such it is your responsibility to inform HMRC of amounts of interest received from us. .
Interest will be calculated from the time the funds become cleared for interest purposes. On cheques and banker’s drafts this will usually be on the day that the cheque or draft has been deposited with our bank. For amounts received by debit or credit card interest will start to accrue from the date of actual receipt which will usually be 3 days after the transaction has been authorised. For direct transfers or same day payments the funds become cleared on the day of receipt.
Interest will not be paid if the amount calculated for the period that cleared funds are held is less than £30.00.