This policy sets out how and when Atherton Godfrey will apply interest to funds held in our Client Account.
Unless there is any specific reason, or we are instructed to do otherwise, funds will be held in our general client account from which the funds are immediately available; this is usually necessary if we are acting in a transaction on behalf of a client. If it is not necessary for the funds to be immediately available we may, on some occasion, place funds in a designated deposit account.
If we hold money in a separate designated client account on your behalf, we will account to you for all the interest earned on that account. 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, then we will account to you for a sum in lieu of interest when it is fair and reasonable to do so, as calculated below.
We will not account to you for any interest:
If money is held for a continuous period and for part of that period it is held in a separate designated client account we will account to you for a sum in lieu of interest for the period when the money was held in a general client account, regardless of whether it is less than £20.
When interest is payable
We will calculate and pay interest once your matter has been concluded.
How we calculate interest
In calculating interest we will apply a rate that we believe reflects the applicable rates for the period when interest is due. We will review the interest rates quarterly and also whenever the Bank of England changes its Bank Rate. It should be borne in mind that as it is necessary for the funds to be immediately available the rate of interest paid on our client account may be less than some investment rates which might be obtained elsewhere.
In determining the period over which interest is to be calculated, we will look at the period between the date when the relevant funds received by us clear our account and, if we send the funds electronically, the date when the funds are sent or, if we send the funds by cheque, five days after a cheque is raised.