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
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
(though I should point out that clients accounts generally have a lot more than 50,000 in total deposited in them. )
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.
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.
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
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?
Bob
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.