"Interest on Lawyers’ Trust Accounts," or IOLTA, is a program mandated by the Supreme Judicial Court. It requires lawyers and law firms to establish interest-bearing accounts for client deposits which are nominal in amount or large amounts held for a short period of time. This site is designed to provide information about what the committee does, to provide lawyers information for opening an IOLTA account, and provide banks information for setting up, maintaining, and reporting on IOLTA accounts.
Frequently Asked Questions
Frequently Asked Questions
Email Scam Targets Mass. Lawyers
Massachusetts lawyers continue to be succesfully targeted by email and internet fraud schemes which many times involve IOLTA accounts. Don't fall victim to one of these financial frauds. Read full details and what to do if you think you are a fraud victim here.
FDIC Extends Unlimited Protection for IOLTA Accounts Until at least December 31, 2010
Since 2008 client funds deposited in IOLTA accounts at participating financial intuitions have been eligible for unlimited deposit insurance coverage under the Federal Deposit Insurance Corporation (FDIC)Transaction Account Guarantee (TAG) Program. On April 13, 2010, the FDIC approved an Interim Rule extending the TAG program from June 30, 2010 to December 31, 2010, with the option of a further one year extension. As a result, IOLTA funds held at institutions that participate in the extended TAG program will continue to be guaranteed in full by the FDIC until at least December 31, 2010. Financial institutions opting out of the extended coverage must display a notice to customers.
IOLTA accounts are specifically allowed for in the TAG Rule and are not included under the NOW account provision. As such, they are not subject to the specific interest rate restictions applied to NOW accounts. Please contact the IOLTA Committee with any questions on this provision.
The following is a link to the FDIC press release, and Interim Rule:
FDIC Extends IOLTA Account Protection
Pursuant to a July 26, 2006 order of the Supreme Judicial Court, financial institutions must be certified by the IOLTA Committee to be eligible to hold IOLTA funds. Additional changes in the operation of IOLTA accounts were adopted in December, 2008. Effective February 1, 2009, all Massachusetts attorneys may only deposit their IOLTA funds in financial institutions that have been certified to meet new requirements.
Please visit our List of Approved IOLTA Depositories to insure your accounts are maintained at an eligible institution.
Effective February 1, 2009: The Safe Harbor interest rate is 1.00%