OPG Announces Special Account Rate Reduction (02.2.09)
On 26th January 2009, Office Notice 01/09 was release to all staff at the OPG confirming that the gross interest rate on Special Account is to be reduced from 6% per annum to 3% per annum. In addition, a letter has been sent to all Deputies from Karen Wheeler, Accountant General of the Supreme Court, which states:
"As Accountant General of the Supreme Court, I am responsible for the safekeeping and administration of those funds, through the Court Funds Office (CFO). The Lord Chancellor, with the agreement of the Treasury, sets the interest paid on client accounts. In light of recent movements in the Bank of England rate it is necessary to reduce the level of interest paid on the special account. From 1 February 2009 the special account rate will be 3%. The person you represent will continue to benefit from the safeguards provided by the special account.
"It may be necessary to make further reductions to our rates in the future. Any future changes will be published on the CFO website (http://www.courtfunds.gov.uk/) and reflected in your six monthly account statement."
Clearly, this step will impact on every Protected Beneficiary, as (virtually) everyone will have funds held on Special Account. Our thoughts on the implications of this action are set out in our Briefing Note.
To download our Briefing Note, please click here: Special Account Rate Cut
Richard Cropper 2nd February 2009
