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.
Why doesn’t my Calmony client bank account earn interest?
This is a common question and the answer comes down to regulation and the legal nature of client money.
Client money does not belong to you
The funds held in your Calmony client bank account are not 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 is not yours, any interest earned on it would legally belong to the people whose funds are being held. You would be required to declare and account for that interest to each individual landlord or tenant whose money generated it — which is administratively complex and, if not handled correctly, a compliance risk.
Industry standard practice
This is not unique to Calmony. Across the UK property industry, client bank accounts have traditionally not earned interest for the account holder. It is standard practice, reflecting the regulatory expectation that client money is held separately and not used for the benefit of the agent.
Your regulatory obligations
As a letting or estate agent, you are required to hold client money under CMP (Client Money Protection) legislation. CMP rules reinforce that client funds must be protected and treated as 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, and accordingly the account does not generate interest for you as the account holder.
If you have any questions, contact our support team at support@calmony.co.