Interest Policy 

In accordance with the Solicitors Regulation Authority’s (SRA’s) Accounts Rules, it is the firm’s policy to account to our clients for interest on money held by us in our client account when it is fair and reasonable to do so. Accordingly, if we hold money in a general client account on your behalf (or if money should have been held on your behalf but was not) we will account to you for a sum in lieu of interest in accordance with the policy outlined below:

  • The holding of client money is a necessary but incidental element of carrying out of your instructions and as we are required by the SRA to hold all client monies on an instant access basis, it is important to recognise that you are unlikely to receive as much interest on any funds that we are holding for you, as you would receive if you invested the money directly.
  • Interest on money that we are holding on your behalf will be calculated on a daily basis and in line with the following rates:
    • Prior to 3rd August 2016 – 0.15%
    • 4th August 2016 to 15th December 2021 (inc) – 0.05%
    • 16th December 2021 to 29th June 2023 (inc) – 0.25% *
    • 30th June 2023 to 20th July 2023 (inc) – 1.00% **
    • 21st July 2023 onwards – 2.00% **

* aligned with the interest rate offered on Virgin’s Everyday Saver (withdrawn by Virgin on 29th June 2023).
** aligned with the interest rate offered on Virgin’s Defined Access E-Saver product.

  • The period for which interest will be paid will normally run from the date(s) on which cleared funds are received by us until the date of issue of any cheque or bank transfer from our client account.
  • Interest is generally calculated and credited at the conclusion of the matter that we are dealing with for you. However, where the matter is one where funds will be held for some time, we may agree to make interim payments (for example in long running trust matters).
  • Where money is held in relation to several matters for you, we will treat the matters separately unless the matters are so closely related that they should be considered together.
  • We will not account to you for any interest in the following situations:
    • if the total amount calculated is £50.00 or less (as we consider that the associated administrative costs will exceed the interest due),
    • on money held solely for the payment of a professional disbursement and for which OH Parsons LLP has a liability to pay,
    • on an advance from us into our general client account to fund a payment on your behalf,
    • where interim payments of interest have been made and the final remaining interest due totals less than £5.00,
    • if we have agreed with you to contract out of the provisions of this policy.
  • All interest is paid to you without deducting tax at source. You are therefore responsible for declaring any interest to HM Revenue & Customs. 
  • If the current UK economic environment means that negative interest rates apply, we reserve the right to charge you for holding money in our client account at the rate of 0.01% more than our bank charges us.

This interest policy will be reviewed periodically, and at least annually, by the partners of the firm and so is subject to change without notice.

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