Negative interest rates are unavoidable and are a massive headache to those bookkeepers and accounts teams who have to manage them. Not only this, but if not managed correctly, they can be a massive cost to the firm.
Here at Keyhouse, we want to help you navigate this new territory as set out by the banks and help you look after your closing balance.
The facts:
- If you have 1 million or more in your client accounts you are going to be hit with negative interest.
- Ulster bank have decided not to apply charges as they are leaving the Irish market.
- All other Irish banks are charging negative interest, with Bank of Ireland charging 0.65 of a per cent so if you had €1m in your client account for the year you would be paying BOI €6,500.
- AIB has announced that rates will increase from May. The current rate of 0.5 of a per cent, levied on business accounts with €1 million or more, is to rise to 0.75 of a per cent.
- The trend to absorb negative interest rates is subsiding as it’s an unsustainable practice.
- Accurately charging clients for their individual negative interest on their monies is a next to impossible task for many law firms.
- We have developed a tool to help you tackle this latest headache, that plugs straight into Keyhouse Accounts.
Are you recovering your negative interest rate charges?
If not, we can help with a tool that will accurately calculate the appropriate negative interest based on the daily closing balance on all client ledger cards. It will considerably reduce your bookkeeper’s time in managing this frustrating overhead whilst at the same time ensuring your firm accurately recovers the cost of negative interest rate charges from individual clients. The calculator has a comprehensive amount of functionality within it including full transparent reporting on all calculations to satisfy both client and regulatory requirements. To arrange a demo you can call us on 01 290 2222 or click here.
What do your peers think?
In December we spoke to Catherine from Hallissey & Partners Solicitors about her experience with negative interest rates and the new Negative Interest Rate Calculator.
“The Negative Interest Rate Calculator has saved me a huge amount of time as it calculates and records onto the Ledger Card the accurate negative interest amount that could be recovered from clients. It only takes about 10 minutes every week and it was a task I was dreading doing manually!”
– Catherine Kelleher, Accounts, Hallissey & Partners Solicitors
If you want to learn more about how Keyhouse can help you navigate negative interest rates, call us now on 01 290 2222.
