Interest Policy

As part of our carrying our instructions on behalf of our clients it is likely we will need to hold money in our client account. We are required under the Solicitors Accounts Rules to pay interest on that money at a “fair and reasonable rate”.

This policy is intended to set out how THP Solicitors applies interest in relation to funds held in our client bank account, in accordance with regulatory requirements. THP Solicitors is committed to compliance with its obligations under the SRA Accounts Rules 2019.

Regard should also be had to our terms of business which set out the agreement we will have with our clients about payment of interest.

Our interest policy seeks to provide a fair outcome for clients whilst recognising that money must be immediately available and that there are administrative expenses incurred in receiving and holding client funds and operating a client bank account.

Client Bank Accounts

THP Solicitors are required to ensure that client money is kept safe and available for the purpose for which it is provided and separate from funds belonging to THP Solicitors.

Client money must be held in a client account and there are two main types of client account:

General Client Account – When we receive monies on behalf of a client it will be paid into a general client account, with Metro Bank Plc. The general client account will hold a pool of clients’ funds and will be held as an instant access account to facilitate transactions as required by the Solicitors Accounts Rules. The interest paid on this type of account is unlikely to be as much as the interest which a client could earn if they had held and invested the money themselves.

Whilst some funds may from time to time be held in an account which attracts a higher interest rate if monies remain in this account this will need to be a breakable account in order to meet the SRA rules. As such there is no guarantee that a higher rate of interest will be received and it is also not possible to distinguish which clients’ funds are in this account.

Designated Client Account – If funds are to be held for an extended period of time they may be placed on an instant access designated deposit account with Metro Bank Plc. This is an account which is set up for a specific named client. We reserve the right to make a charge for the setting up and administering of this type of account. If we intend to do this we will advise you in advance and confirm any fee which will be charged. Similarly if you request that we do this we will notify you of the relevant anticipated interest rates and our fee for arranging this.

Application of Interest for Client Funds Held

For money held in a designated client account we will account to you for all interest earned on that account. Interest is usually paid gross but will be paid net if any tax is deducted at source.

For money held in a general client account (or money under our control which should have been held in a client account but was not) we will account to you for interest when it is fair and reasonable to do so in all the circumstances having regard to the principled and practices as detailed below:

Due to regulatory requirements and administrative costs involved in operating a client bank account and holding and receiving client funds we will not pay interest if the sum calculated is less than £50 in total for the full period during which we hold client money.

We will not pay interest on money held:

i) on money held for the payment of professional disbursements
ii) on money held for the Legal Aid Agency
iii) if there is an agreement to contract out of the terms of this policy
iv) if a client fails to present a cheque to his or her bank for payment interest will not be paid on this money.
v) On mortgage funds held overnight/over a weekend to ensure there are no delays on completion of a matter.
vi) On funds held for less than 14 days on a conveyancing matter.

Interest will be calculated at an interim stage as requested and at the end of the matter and will be credited to the client ledger at that time.

Factors Considered when determining what is fair and reasonable

As a starting point it is important to consider the fact that the holding of funds will be incidental and necessary to the carrying out of the legal instructions. The operation of a client account has cost implications for the firm and is incidental to the carrying out of legal work on behalf of our clients.

Factors to be considered will be the level of sums held and for how long they have been held for together with the reason why these have been held for that period of time, the type of matter e.g. conveyancing or probate and any additional costs in terms of administrative expenses and time have been incurred.

Each matter will be considered on a case by case basis taking into account all the circumstances and ultimately it will be the decision of Rachel Gaylor and/or Angela Gates whether it is fair and reasonable to pay interest.

Calculation of Interest

Interest will be calculated and paid by reference to applicable rates over the period for which we hold cleared funds. Funds will be treated as cleared for the purposes of this policy from the date they are actually cleared or the date when they would have had funds been banked in accordance with the firms procedures for banking of client funds.

Unless otherwise agreed, where we are conducting more than one matter for you, balances will not be aggregated for calculation purposes.


The current rate of interest paid on our general client account is 1.65%.

This Policy and the rate of interest payable will be reviewed on at least an annual basis by Rachel Gaylor and Angela Gates in order to ensure that it continues to give a fair outcome.


4th March 2024