Why doesn’t my Calmony client bank account earn interest?
Client bank accounts hold funds belonging to your landlords and tenants, not you. UK regulation and industry practice mean interest cannot be earned by the agent on these funds.
This comes down to two things: the legal nature of client money, and the regulations that govern how it must be held.
1. Client money doesn't belong to you
The funds held in your Calmony client bank account aren't your money - they belong to your landlords and tenants. Rent, deposits, and holding fees are held by you in trust on their behalf.
Because the money isn't yours, any interest earned on it would legally belong to the people whose funds generated it. You'd be required to declare and account for that interest to each landlord or tenant - which is administratively complex and a compliance risk if not handled correctly.
2. This is standard across the industry
This isn't unique to Calmony. Across the UK property industry, client bank accounts have traditionally not earned interest for the account holder. It reflects the regulatory expectation that client money is held separately, and not used for the benefit of the agent.
3. Your regulatory obligations
As a letting or estate agent, you're required to hold client money under CMP (Client Money Protection) legislation. CMP rules reinforce that client funds must stay separate from your own business money - earning and retaining interest on those funds would conflict with this principle.
In summary
Your client bank account is a regulated holding facility, not a business savings account. The funds in it belong to your clients, so the account doesn't generate interest for you as the account holder.
If you have any questions, contact our support team at support@calmony.co.