Interest Policy

July 2020

Payment in lieu of interest

  1. We acknowledge an obligation to account to our clients for a fair sum of interest on any money we hold on their behalf.  This policy confirms the circumstances in which we will comply with this obligation by making a payment in lieu of interest.

 

  1. We are generally required to hold client money in an instant access account.  Accordingly, sums payable to clients in lieu of interest are likely to be less than those which they might otherwise obtain from a bank or savings institution where funds can be deposited for fixed periods of time.

 

  1. Subject to paragraph 4, we will pay to each client a sum in lieu of interest on any money held on their behalf calculated at 0.4% below our principal deposit bank’s base rate from time to time.  We will make payment within a reasonable time of completion of the client’s matter. 

 

  1. No payment in lieu of interest will be paid in the following circumstances:

 

  1. If the amount is £20 or less;
  2. If our principal deposit bank’s base rate is below 0.4%; or
  3. We hold cleared funds not exceeding the amount shown below for a time period not exceeding the period shown below:

                  

Amount        Time

                   £1,000          8 weeks

                   £2,000          4 weeks

                   £10,000        2 weeks

                   £20,000        1 week

 

Charge for negative interest rate

 

  1. In the event that our principal deposit bank’s base rate falls below 0% and our principal deposit bank levies upon us an interest charge in respect of any money we are holding on behalf of a client, we will be entitled to seek reimbursement of such interest charge from our client.     

 

Contact us

3 Waterfront Business Park
Brierley Hill
West Midlands, DY5 1LX

Email: law@higgsandsons.co.uk
Call Us: 0345 111 5050

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