"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.
Important Update Regarding FDIC Insurance of IOLTA Accounts
For the past two years, IOLTA and non-interest bearing accounts enjoyed unlimited FDIC insurance coverage pursuant to Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. That provision was to be effective for two years only and has not been extended by Congress. As of January 1, 2013, the FDIC insurance available to IOLTA accounts will be $250,000 per owner of the funds (client), per financial institution. Read more about the changes to FDIC insurance for IOLTA accounts.
Supreme Judicial Court Adopts Access to Justice Fee
On June 29, 2010, the Supreme Judicial Court amended their Rule 4:03, adding $51 per year to the Board of Bar Overseers annual attorney registration fee. This “Access to Justice Fee” is to be used “in the administration of justice and provision of civil legal services to those who cannot afford them.” Read more about how Massachusetts attorneys can help support critically needed civil legal aid during the annual registration process.
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.
As of March 1, 2012:
- The Leadership Bank interest rate is 1.00%
- The Safe Harbor interest rate is 0.75%
