1. Purpose
1.1. We will pay a fair sum of interest to clients or third parties on any client money we hold on their behalf.
1.2. The objective of this policy is to achieve a fair outcome for our clients in accordance with the Solicitors Regulation Authority Accounts Rules (SARs) and the Code of Conduct.
2. Different Types of Client Account
2.1. Monies held by us for you, whether on account of fees or expenses or otherwise will usually be placed in our general client account with our bankers. You can at any time specifically request a designated deposit account if you prefer. Where we are holding either a large amount, or we are aware we will be holding funds for a significant period of time, or for any other reason that we deem appropriate, we may decide to place funds in a designated deposit account for you.
2.1.1.Our general client account is an account in which amounts for different clients and matters are pooled.
2.1.2.A designated deposit account is an account for money relating to a specific client i.e. a specific bank account for a specific matter.
3. Amount of Interest in Relation to Our General Client Account
3.1. We will pay an amount in lieu of interest on money held in our general client account on the following basis:
3.1.1.The rate we will currently apply as of 01 April 2026 is:
3.1.1.1. 0.42% for balances between £0.00 to £999,999.00
3.1.1.2. 0.57% for balances between £1,000,000.00 to £4,999,999.00
3.1.1.3. 0.63% for balances between £5,000,000.00 and £9,999,999.00
3.1.1.4. 0.73% for balances over £10,000,000.00
3.1.2.In determining the rates above, we take into consideration the instant access deposit rates offered by our bankers. However, we retain discretion to set rates that we consider fair in the circumstances, which may be lower than the rates offered by the bank. This approach allows us to balance fairness to clients with the practicalities of managing client funds.
3.1.3.Interest will accrue daily on the balance held for each individual matter and be applied on a monthly basis and on matter closure.
3.1.4.Any amount in lieu of interest credited will be held in our general client account and will be considered earmarked for costs if applicable.
3.2. As the amount in lieu of interest is paid by us, we will then retain interest paid to us by the bank on the aggregate of all client monies held in the general client account.
4. Amount of Interest in Relation to Designated Deposit Accounts
4.1. Our bankers will pay interest on money held in a designated deposit account on the following basis:
4.1.1.The rate they will currently apply as of 09 March 2026 is:
4.1.1.1. 0.85% for balances between £0.00 to £999,999.00
4.1.1.2. 1.15% for balances between £1,000,000.00 to £4,999,999.00
4.1.1.3. 1.25% for balances between £5,000,000.00 to £9,999,999.00
4.1.1.4. 1.45% for balances over £10,000,000.00
4.1.2.Interest will accrue daily on the balance held and be applied on a monthly basis and on account closure.
5. Circumstances in which Interest will not be paid in Relation to General Client Account
5.1. On money we are instructed to hold outside a client account in a way that does not attract interest, e.g. cash.
5.2. For reasons of administrative costs, if the amount of the interest does not exceed £75.00.
5.3. Where we come to a different arrangement, in writing, with the client or third party for whom the money is held – where we do so, we will provide sufficient information to enable the client or third party to give informed consent.
5.4. Where for any reason we are prevented by law from doing so. In such circumstances we will have no liability for non-payment.
5.5. At our discretion, we may also not pay interest when:
5.5.1.Funds held are on account of a professional disbursement once Counsel or other professional has requested a delay in settlement.
5.5.2.Funds held being an advance from us into our general client account to fund a payment on your behalf in excess of funds already held for you in that account.
5.5.3.If the funds are held for one week or less.
6. Interest Period
6.1. Interest will be calculated over the period we hold the monies, starting from the date the monies are treated by us as cleared funds.
7. Best Available Rate
7.1. We are required by the Solicitors Regulation Authority (SRA) to ensure client money is available on demand, unless we agree an alternative arrangement in writing with the client or third party for whom the money is held. We therefore hold all client money in instant access accounts, unless we have agreed an alternative arrangement.
7.2. This means the interest rate paid on client money held in our general client account or a designated deposit account, may not be as high as could be achieved if the client or third party placed the money on deposit themselves.
8. Tax Liability
8.1. Interest on money held in our general client account or in a designated deposit account will be paid before deduction of tax. It will be the recipient’s responsibility to declare interest received to HMRC.
9. Special Cases
9.1. Where we hold money on more than one matter for a client or third party, interest will be calculated separately for each individual matter, unless it is fair to aggregate the interest.
9.2. If we hold money jointly with another firm, we will agree with the other firm how interest will be allocated.
9.3. Where we hold money for more than one client or third party on the same matter, we will divide the interest in the same proportions.
10. Unpresented Cheques
10.1. Where we pay money by cheque to a client or third party who delays in paying the cheque into their bank, we will pay additional interest only where it is fair in all the circumstances to do so. We reserve the right to charge for the additional work involved.
11. Contracting Out
11.1. We may, by written agreement with the client or third party for whom the money is held, contract out of the terms of this interest policy.
11.2. When agreeing to contract out, we will:
11.2.1. act fairly and in the best interests of any relevant client; and
11.2.2. provide sufficient information to enable the client or third party for whom the money is held to give informed consent.
12. Limitation of Liability
12.1. We will not be liable to you or any third party for any loss or damage suffered as a result of any act of omission, fraud, delay, negligence, insolvency or default of any bank, financial institution, clearing or payments system nor that of the partners, officers, employees, agents or representatives of any of the foregoing.
12.2. Nothing in this policy excludes our liability below the minimum level under the Solicitors Regulation Authority Indemnity Rules.
13. Updating of Interest Policy
13.1. We review this policy from time to time and may amend it. The most up to date version will be available on our website at whitingmason.co.uk/interest-policy or can also be provided on request.
14. Monitoring & Review
14.1. The firm’s Compliance Officer for Finance and Administration (COFA), Neil P Gunson, is responsible for this policy.
14.2. The COFA will monitor compliance with this policy and will review this policy regularly and at least annually.
15. Queries
15.1. If you have any queries in relation to this policy, then please do not hesitate to contact us as we shall be happy to discuss them with you.
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