Court Funds Office interest rates: special and basic account calculator

Last updated 28 September 2026 · By Mustafa Bilgic · Rates from the Ministry of Justice and the Funds in Court accounts; rules from the Court Funds Rules 2011

This page lists the special and basic account rates since June 2020, with earlier special account rates, explains which account money goes into and what happens at 18, and works out how much a sum held in court grows by a payout date or a child's 18th birthday, including the interest added twice a year.

Special account or basic account

Rule 11 of the Court Funds Rules 2011 requires the Accountant General to keep two interest bearing accounts, a basic account and a special account. Money may not go into a special account unless a child or a person who lacks capacity is entitled to it, and that money goes into the special account unless a court, a deputy or an investment manager directs otherwise. Everything else goes into the basic account unless a court directs otherwise.

A child's compensation held by the Court Funds Office goes into the special account unless a court directs otherwise. According to the Funds in Court accounts, special account interest is paid on damages awarded to children in civil claims in the county court or the High Court, on assets of people who lack capacity to manage their own financial affairs, mainly where the Court of Protection has appointed someone to manage them, and on sums invested for widows and other beneficiaries before March 1983. For how a child's claim works, see our guide to claiming compensation for a child.

Court Funds Office interest rate history

The Funds in Court accounts say the interest rate payable on client funds is set by the Lord Chancellor with the concurrence of HM Treasury. Recent changes were announced on GOV.UK in response to changes in the Bank of England base rate. The table shows each rate and the day it started; the special account rates before June 2020 come from a Court of Appeal judgment.

Two dates in the official record differ. The audited 2022-23 accounts show 0.645% and 0.323% from 29 April to 1 September 2022, but the GOV.UK notice for 2 September 2022 says the rates rose "from 1.25% to 1.75%" and "from 0.94% to 1.313%" without a start date for 1.25% and 0.94%; the calculator follows the accounts. For the April 2023 rise, the GOV.UK notice says 21 April 2023 and the 2023-24 accounts say 1 April 2023; the calculator uses 21 April.

How interest is worked out

Rule 13 of the Court Funds Rules 2011 sets the method. Interest accrues on a daily basis from the effective date, usually the day the Court Funds Office receives the money, until the day before the money is withdrawn. It is credited without deducting income tax. Unless the Accountant General directs otherwise, it is credited:

• to a special account on 31 May and 30 November;
• to a basic account on 31 March and 30 September;
• when money moves between the two accounts, and when an account is closed.

Because interest is added twice a year, interest earns interest from the next day. The calculator takes a day's interest as the balance x the yearly rate / 365, adds it on each credit date and uses each rate from the day it started.

Example: £10,000 paid into a special account on 9 January 2026 earns 3.75%. The 143 days to 31 May give £146.92, added on 31 May. The balance of £10,146.92 then earns £31.27 over the 30 days to 30 June, so a payout on 1 July 2026 would be about £10,178.19.

What happens at 18

Under rule 12, when a person entitled to money in a special account stops being a child, the money moves to a basic account, from the date they stopped being a child. The same happens if they die or stop being a person who lacks capacity. The calculator does this if you enter the child's date of birth: special account interest up to the day before the 18th birthday, then basic account interest. Leave the payout date blank to see the value on the 18th birthday.

GOV.UK says the litigation friend is responsible for the account until the child turns 18, cannot take money out without an order from the court that awarded it, and that the Court Funds Office will usually contact the child after their 18th birthday to tell them how to apply for the money.

Investing in the Equity Index Tracker Fund

Some money in a special account can be invested in the stock market instead. The Funds in Court accounts say access to the Lord Chancellor's Common Investment Fund, an equity index tracker fund managed by Legal & General, is limited to special account holders with cash of at least £10,000 whose funds are expected to be held in court for five years, and that the investment carries market risk, including the risk of losing capital. GOV.UK gives the same two conditions for deputies. The calculator covers cash in the special and basic accounts only, not money invested in the fund.

Statements and tax records

GOV.UK says litigation friends get annual statements and tax vouchers in April or May each year, with another statement in October or November if there is £100,000 or more in the child's account. Interest is credited without tax deducted, so ask a tax adviser whether any tax is due on it.

The special account rate and personal injury interest

The same special account rate is used by the courts for interest on past losses in personal injury claims, usually at half the rate from the date of the injury to the trial, as in Winterbotham v Zaker Sharak [2024] EWHC 2633 (KB). For how the award itself is built up, see general damages explained and special damages explained.

Sources and methodology

The calculator applies each rate from its start date, credits interest on the dates in rule 13 and at any move to the basic account or payout, and rounds each credit to the penny. Dates after 28 September 2026 use today's rates until the Lord Chancellor changes them. It covers the Court Funds Office for England and Wales only.

• Court Funds Rules 2011 (S.I. 2011/1734), rules 11, 12 and 13, on legislation.gov.uk.
• Interest rate notices for the Court Funds Office special and basic accounts, Ministry of Justice, 1 June 2020 to 9 January 2026, on GOV.UK.
• Funds in Court in England and Wales annual report and accounts 2020-21 to 2025-26, on GOV.UK.
• Litigation friends: manage a Court Funds Office account and Deputies: manage a Court Funds Office account, on GOV.UK.
• Perry v Raleys Solicitors [2017] EWCA Civ 314, paragraph 63, on Find Case Law.

Frequently asked questions

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