Interest on Lawyer Trust Accounts (IOLTAs)

Answered by:

Question:

We know that IOLTAs will now be covered under the Dodd-Frank Act's provision for unlimited coverage - but will IOLTAs be held to a minimum interest rate? (i.e. .25 or less?)

Answer:

No. The amendment recently enacted added IOLTAs to types of accounts to be provided full FDIC coverage, but included no other qualifications such as rate ceiling, etc. All accounts qualified as IOLTA accounts under your state's IOLTA rules will be included.

First published on BankersOnline.com 2/14/11