Your moneys and Interest policy
Frequently in the course of dealing with a client’s affairs, We will receive and hold money for a client. For clients’ protection all client money is kept in a client account that is separate from the firm’s own monies. Occasionally at Carter Bells discretion those monies may be held in separate designated deposit accounts.
Any account will be with a bank as defined by Section 87 of the Solicitors Act 1974 or building society account in accordance with the Building Societies Act 1986. Carter Bells do not deposit monies with any bank registered offshore.
In the event of any bank with which money is deposited failing to repay money it holds Carter Bells do not expect to be liable for that loss. In that event a client may suffer loss and that would depend on whether the amount was a specific designated deposit account solely for that client’s money or if the amount was held in a general client account where this may be a proportion of that client’s money where that bank may only have held a proportion of that client’s money.
In the event of a bank failing a client may be protected under the Financial Services Compensation Scheme (FSCS) subject to its limits currently £85,000 per depositor. The FSCS limit applies to the individual client, and so if a client hold other personal monies in the same bank as Carter Bells the limit remains £85,000 in total. Please be aware that some deposit taking institutions have several brands, (i.e. where the same institution is trading under different names.) You should check either with your bank, the Financial Conduct Authority or a financial adviser for more information.
In accordance with the Solicitors’ Accounts Rules 2011 Carter Bells have the following policy on payment of interest on client money that we hold. Under this policy interest will be paid on money held by Carter Bells on client money (where the amount of interest due exceeds £50) on the following balances only:-
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The rate of interest paid will be at the rate paid from time to time by Barclays Bank PLC on a “Business Premium” account. This is a variable rate of interest. To find this rate of interest please look at Barclays Bank website; www.barclays.co.uk open tab for “business” and search on interest rates or call our accounts department on 0208 939 4000 Monday to Friday 09.00-16.00 or visit any branch of Barclays. If Barclays cease to provide this account then Carter Bells will substitute another account rate on an instant access account provided by Barclays that has comparable account features to the Business Premium account.
Carter Bells is not able to deposit monies at the higher rates of interest that may be available to personal savers, these rates often being published in savings “best buy” tables. Clients are unlikely to receive as much interest as might be obtained by investing the money personally.
Interest is paid on cleared balances only; not on monies still in clearance. Interest is paid on 31st March in the year or if earlier the date that the money held is paid out.
Carter Bells do not pay interest on money held on account of our charges and third party expenses or disbursements and this includes money held to pay any stamp duty land tax.
This policy may be changed from time to time.