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The different types of Court Funds Office accounts

The majority of money is held on behalf of clients in special or basic accounts. The rest of the money can be invested in the stock market.

Special accounts

Special accounts are used mainly for Court of Protection clients and children who have been awarded money from a court case.

Basic accounts

Basic accounts are used for funds held on deposit during civil litigation or under a variety of statutory legislation.

Money held in a basic or special account is guaranteed by HM Treasury, which means that the funds are completely safe. Special and basic accounts receive interest on the money that is held in the accounts.

Interest on Court Funds Office accounts

You can earn interest if money is deposited into a Court Funds Office account.

There are two different interest rates for the special and basic accounts that are held with the Court Funds Office.

The current interest rates are:

• basic account – 0.3 per cent
• special account – 0.5 per cent

These rates are not fixed and can be changed at any time.

Basic interest is usually paid in county court or High Court cases involving adults.

The special rate is mainly paid to Court of Protection clients' accounts and children's accounts.

Interest is calculated by multiplying the amount held in an account by the current interest rate (a percentage, as above). This is then multiplied by the number of days that are applicable for interest. The total is then divided by 365.

Court Funds Office investments in the stock market

The Court Funds Office can make investments on behalf of someone by using the Equity Tracker Index Fund (ETIF). This is a way of investing in the stock market.

Equity investments are only available to certain people. Usually this includes children under 13 years old awarded £10,000 or more and Court of Protection clients. Court of Protection clients are people who are unable to make decisions for themselves. The court can appoint someone to make decisions on behalf of the person or the court can make the decision for them.

The Equity Tracker Index Fund invests in a wide range of different companies, rather than investing in one, or a few individual companies. Although the risks are lower than other investments, the value of the fund may go down as well as up.

The current unit value of the Equity Index Tracker Fund is available on the Financial Times website. It will give you the price per share at the close of the previous trading day.

• Ministry of Justice Equity Index Tracker Fund - Financial Times Opens new window

How decisions about investments are made

For Court of Protection clients, money is invested based upon directions from the Court of Protection, a deputy or an investment manager appointed by a deputy.

For children’s accounts, the court will decide how to invest the funds between the choices offered by Court Funds Office.

Objecting to the way money has been invested

Any Court Funds Office client, or their representative, can apply to the court to change the way that money from an account is invested. This is subject to the approval of the court and will normally involve a court application fee.