Payment of interest

Payment of interest

This subtopic reflects requirements of the SRA Accounts Rules regarding payment of interest by law firms on client money. See also Precedent: Interest policy—law firms.

SRA requirements

General obligation to pay interest

You must account to clients or third parties for a fair sum of interest on any client money held by you on their behalf. See Practice Note: Payment of interest—law firms—What is a fair sum of interest?

You may by a written agreement come to a different arrangement with the client or the third party for whom the money is held but you must provide sufficient information to enable them to give informed consent.

Interest on money held outside client account

The Accounts Rules do not automatically exempt firms from the obligation to pay

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