The Ministry of Justice announced an increase to the Interest Rates of the Court Funds Office effective as of 23/08/23.
WHAT IS THE COURT FUNDS OFFICE?
The Court Funds Office (CFO) is responsible for:
Money held on behalf of clients whom are mentally incapacitated.
Money to be paid to minors whom have been involved in an an accident or otherwise obtained an award through civil litigation.
A large unclaimed balance fund. This arises where the money has been paid into a CFO account and lain dormant due to the owner being untraceable. This is usually the result of a case collapsing, a company entering liquidation or a repossession claim.
Essentially, the CFO provides banking and investment services for the courts throughout England and Wales (Northern Ireland has a separate CFO) and is responsible for money that has been paid into court together with overseeing any investments made with that money.
WHAT IS THE INCREASE?
The increase which take affect as of 23/08/2023 is as follows:
SPECIAL ACCOUNTS: Increased from 4.5% to 6.0%.
BASIC ACCOUNTS: Increased from 3.375% to 5.0%.
WHY WAS THERE AN INCREASE?
The Lord Chancellor has directed successive increases in response to those made to the Bank of England's base rate. This is in order to ensure that the running costs of the CFO can continue to be met.
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