The duty to account to clients for a fair sum of interest on money held — and how that duty operates under the SRA Accounts Rules.
Client money sitting in a firm's account can earn interest, and the rules are clear that the benefit belongs to the client, not the firm. This chapter starts with the core obligation to account for a fair sum and the written interest policy every firm must keep, then examines the factors that determine what counts as fair. It moves on to the two types of client bank account and how interest is treated differently on general and separate designated accounts, before covering when and how the interest obligation can be varied by agreement. It closes with the double entries needed to record interest, whether paid into the client account or directly to the client.
