In accordance with the Solicitors Accounts Rules 2019 it is our policy to account to our clients for interest on a fair and reasonable basis for both you and us.
When we receive monies on your behalf it will usually be paid into a general Client Account with NatWest PLC who the firm banks with. This general Client bank account will hold pooled amounts for different matters and clients. In most cases, we must ensure that money held on client account is immediately available and therefore may require an instant access account or a notice account that allows us to make an immediate withdrawal at the sacrifice of interest. All of this is taken into account when we set our interest rate.You are therefore unlikely to receive as much interest as you might have obtained had you held and invested the money yourself.
We align our interest rates paid on monies held in general client account to the rates paid on an instant access business deposit account with NatWest PLC. This rate is likely to change from time to time.
Where amounts are held outside of our general client account, the rate of interest and date interest is paid will be dependent on the relevant account in which funds are held..
Interest on general Client money is calculated on cleared funds on a daily basis and compounded annually. The calculation of the interest on a file will normally be made after the conclusion of a matter and we will transfer any interest due to you in accordance with this policy promptly. Any interest paid to you is paid without any deduction for income tax. As such, it is your responsibility to inform HM Revenue & Customs of amounts of interest received from us.
In the event that the calculated total interest accruing to you for the duration of a matter is less than £50 then no interest will be paid to you.,
Interest is paid by NatWest PLC to us on the aggregate of all Client money held in the general Client Account and, subject to any interest paid to clients in accordance with this policy, is for the benefit of us.
On occasions interest may accrue on Client’s monies held by us pending the completion of a conveyancing transaction. Fees quoted in such transactions are given on the basis that any interest that may accrue will be retained by us to avoid the necessity of increasing our level of charges. Unless you specifically object to this provision you will be authorising retention of this interest by us.
If the bank in which the firm holds funds should fail we reserve the right to disclose to the FSCS the names and other details of Clients whose money is held there in order for those clients to claim compensation up to the applicable limit, currently £85,000.
We will not be liable to you or any third party for any loss or damage suffered as a result of any act, omission, fraud, delay, negligence, insolvency or default of any bank, financial institution, clearing or payments system nor that of the directors, officers, employees, agents or representatives of any of the foregoing.
If you require any further information please do not hesitate to Contact Us.