At Teacher Stern LLP we pay to our clients interest accrued on client money, in accordance with rules 22-25 of the SRA Accounts Rule 2011, when it is fair and reasonable to do so in the circumstances.
It is a requirement that money held in a client account must be immediately available, which means that the interest which our client account accrues, is likely to be less than the interest which you could receive if you were to invest your money separately. Interest will be accrued in our client account at a rate of 0.05%. If you wish your funds to be held in a different account, which pays a higher rate of interest, but may mean that you do not have the option to obtain your sums immediately, then this can be discussed further and you are requested to raise this with the fee-earner handling your matter.
If we are holding sums for you in relation to separate matters, we will treat the money relating to the different matters separately, unless the matters are so closely related that they ought to be considered together and, if that is the case, we will inform you of this.
We determine the period over which interest is calculated, by looking at the following:-
- If the payments in and out are made by cheque, we will look at the period between the date when the incoming cheque is banked and the outgoing cheque is drawn.
- If payments in and out are not both made by cheque, the relevant periods are:-
- From the date when incoming money is received in cash until the date when the outgoing cheque is sent;
- From the date when an incoming telegraphic transfer begins to earn interest until the date when the outgoing cheque is sent; and
- From the date when an incoming cheque or banker’s draft is or would normally be cleared until the date when the outgoing telegraphic transfer is made or banker’s draft is obtained.
We operate a de minimis level, this means that no interest will be payable, if the amount calculated on the balance held is £20 or less.
We will pay the accrued interest to you at the conclusion of your matter (unless we enter into a separate agreement with you to pay it to you at regular intervals) and the interest will be calculated over the period in which we hold cleared funds for you, in accordance with rules 22-25 of the SRA Accounts Rules 2011.
If we give you a cheque, at the conclusion of your matter, made up of client money and accrued interest and there is a delay, beyond four months, from the date the cheque was written, in you cashing the cheque, then, at our discretion, we will account to you for any further interest incurred, if you request it.
If we are holding money as a stakeholder any interest accrued will be paid to the person to whom the stake is paid.