Interest Rates

The amount of IOLTA income depends on interest rates paid on the accounts. When rates drop and stay low, as they have from the beginning of 2008 to the present, IOLTA revenue declines. Many IOLTA programs have been forced to reduce grants to legal aid providers, in many cases by large percentages. Though the effects of the historically low interest rates will be felt for some time, these rates tend to be cyclical.

To offset revenue declines, IOLTA programs throughout the country negotiate with financial institutions to reduce service charges and increase interest rates on IOLTA accounts. Working with banks and attorneys helps ensure that IOLTA generates as much funding as possible in order to provide legal aid for those who have nowhere else to turn.

PrintEmail