Overview

The Client Interest Calculator allows firms to calculate and post interest on client funds held in Client/Trust for individual  matters or across multiple matters at once. 

This tool helps firms:

• Comply with regulatory requirements
• Accurately calculate interest on client balances
• Automate interest postings
• Maintain transparent financial records

This feature is available for UK-region firms only.

You can use this tool to:

• Calculate interest for a single matter, or
• Calculate interest for multiple matters in bulk
  

What is Client Interest?

Client interest refers to interest earned on funds held in client accounts.

The interest is calculated using:

• Predefined Interest Rate Sets
• Tiered Interest Bands
• A  De Minimis threshold

These settings determine:

• How much interest is accrued
• Whether it is eligible for posting
• How it is applied to matters

Interest calculations depend on the configured Rate Sets, Interest Bands, and De Minimis threshold.

Setting Up the Interest Calculator

Before posting interest, you must configure;

• Client Interest Rate Sets
• De Minimis Threshold (minimum interest eligible for posting)
• Assign the Rate Set to Matters

These settings control how interest is calculated across matters.

Interest cannot be calculated until Rate Sets, and the De Minimis threshold have been configured.

Setting Up Client Interest Rate Sets

Interest Rate Sets define how interest is calculated using tiered bands.

1. Navigate to Settings → Firm Settings → Client Interest Rate Sets
2. Click New Rate Set 
3. In the Details section, enter a Rate Set Name & Description
4. Tick Make Firm Default if applicable

In the Rate Details section:

1. Enter an Effective Date From 
2. Enter the Upper limit for Band 1 (lower limit defaults to 0.00)
3. Enter the Rate for Band 1
4. Click + Add New Band to create additional bands
5. Enter upper limit and rate for each new band added
6. Click Save

To remove a band, select the delete icon next to the band.

Interest Rate Sets allow firms to define tiered interest calculations based on balance thresholds.

Editing or Updating a Rate Set 

To edit an existing Rate Set:

1. Navigate to Settings → Firm Settings → Client Interest Rate Sets
2. Locate the relevant rate set
3. Select the ellipsis menu(...) next to the Rate Set
4. Select Edit Rate Set
5. Make the required changes (e.g. name or description), then click Save
   

   
   

From the same ellipsis menu, you can also:

• Select Make Default to set the rate set as the firm default
• Select Delete to remove the rate set (if not in use)

Rate Sets currently in use should not be deleted unless they are no longer required.

Editing Rates Within a Rate Set

To update the interest bands and rates within a rate set:

1. Expand the Rate Set by selecting the arrow icon beside it
2. All associated rates and bands will be displayed.
   
3. Select the ellipsis menu (...) next to the relevant rate.
   
4. Select Edit Rates.
   
5. Make the required changes.
   
6. Select Save.

Adding a New Rate to an Existing Rate Set

To add a new rate or band:

1. Locate the Rate Set.
2. Select + New Rate.
3. Enter the band limits and interest rate.
4. Select Save.

Changes apply to future interest calculations only. Historical postings are not affected. Always review changes before saving. 

Consider creating a new rate set for major rate changes, rather than modifying an existing one.

Setting the Firm De Minimis Amount

The De Minimis Amount sets the minimum interest eligible for posting.

Interest below this threshold will not be posted.

To configure this:

1. Navigate to Settings → Firm Settings → De Minimis Amount.
2. Enter the threshold amount.
3. Select Save Changes.

Example: If the De Minimis is set to £20.00, any calculated interest below £20.00 will not be posted.

The De Minimis threshold prevents very small interest amounts from being posted.

Applying an Interest Rate to a Matter

To configure interest calculation for a matter:

1. Open the relevant Matter.
2. Select Update → Update Details → Rates & Estimates
3. Use the Client Interest Rate Set drop-down to select the applicable rate.
4. Select Save.

Once applied, the matter is configured for interest calculation.

Interest can only be calculated for matters that have a Client Interest Rate Set assigned.

Tips & Best Practices

To ensure accurate interest calculations:

• Set up Rate Sets before creating matters
• Use clear names for Rate Sets and Bands
• Review interest rates annually
• Set a reasonable De Minimis Threshold
• Always verify client balances before posting interest
• Retain historical rate sets for compliance
• Avoid editing active Rate Sets without creating a new version
• Avoid deleting historical rate sets

Best Practice: Maintaining historical Rate Sets helps ensure accurate financial records and regulatory compliance.