"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.
New FDIC Rule Extends Unlimited Protection for IOLTA Accounts Until June 30, 2010
The Federal Deposit Insurance Corporation (FDIC) announced in 2008 that client funds deposited in IOLTA accounts at participating financial intuitions are eligible for unlimited deposit insurance coverage under the Transaction Account Guarantee Program (TAGP). On September 1, 2009, the FDIC extended the TAGP from December 31, 2009 until June 30, 2010. As a result, IOLTA funds held at institutions that participate in the extended TAGP will continue to be guaranteed in full by the FDIC until June 30, 2010. Financial institutions opting out of the extended coverage must display a notice to customers.
Full text of the final Rule can be found here. (PDF)
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%