Interest rates

CFO operates two interest bearing accounts with two different rates of interest – the basic account and the special account. Interest rates are set by the Lord Chancellor.

From 1 July 2009 CFO's interest rates will be

Basic account rate 0.3%

Special account rate 0.5%

Basic interest is applied to County Court and Queens Bench matters (litigation involving adults only)

The Special rate is paid to Court of Protection Clients' accounts and Children's Funds accounts. Both rates are variable and may change following a direction from the Lord Chancellor.

For more information on our interest rate changes, we have provided a leaflet with details the rates for both our 'basic' and 'special' accounts since the 1st of October 1965. To open, please click here.

How we calculate interest

To calculate the interest accrued on money held in court follow the guide below.

Interest is calculated by multiplying the amount held on account by the current interest rate (a percentage), multiplied by the number of days accruing interest. The total is then divided by 365.

Where a = amount held on account
Where i = current interest rate (in a percentage)
Where n = number of days accruing interest

Interest = (a x i% x n) / 365

Note - money starts to accrue interest on the date that it is placed on the account, but does not receive interest on the day it is taken out.
For example, if money is invested on the 1st of a month and withdrawn on the 31st, it accrues 30 days of interest.

Example:
On the 1st July £10,000 will be invested in a special account where the interest rate is 0.5% and will be withdrawn on the 30th July;

Interest accrued = (10,000 x 0.5% x 29) / 365 or

Interest accrued equals ten thousand pounds multiplied by half a percent multiplied by twenty nine days. The total is then divided by 365 days.

Interest accrued = £3.97