Use the forms below to report monthly interest or update your IOLTA interest rate with the SC Bar Foundation.
Financial Institution Forms
IOLTA Remittance Form
Use this form to report monthly interest earned on IOLTA accounts and remitted to the SC Bar Foundation. Timely submission ensures accurate tracking and compliance with Rule 412 reporting requirements.
IOLTA Compliance Form
Use this form to start the enrollment process and report any updates to the interest rate your institution applies to IOLTA accounts, in accordance with Rule 412 requirements.
What is IOLTA?
Without taxing the public and at no cost to lawyers or their clients, interest generated on funds in lawyers’ trust accounts—IOLTA—is used to support civil legal aid and improvements in the justice system. The South Carolina Supreme Court officially created the Interest on Lawyers’ Trust Accounts (IOLTA) Program in 1988. IOLTA programs exist in all 50 U.S. States, some U.S. Territories, and Canada. Since 1981, over $4 billion has been generated worldwide by IOLTA Programs.
Lawyers routinely receive client funds that are held in trust accounts for future use. When the amount is large or if the funds are to be held for a long time, lawyers place these funds in interest-bearing accounts for the benefit of their clients. However, when client funds are unable to earn income on their own, the funds are deposited in a pooled account (an IOLTA account). The bank then sends the interest directly to the Foundation, which distributes the funds as grants to a variety of initiatives that support the justice system.
Rule 412, SCACR, governs IOLTA and authorizes the SC Bar Foundation to administer the program. Other rules, such as 1.15, SCRPC, also provide guidance.
Frequently Asked Questions
Find answers to common questions about IOLTA accounts, including Taxpayer ID usage, service charges, interest rates, reporting procedures, and responsibilities of financial institutions under Rule 412.
1. How does a financial institution begin the enrollment process to be approved to provide IOLTA Accounts?
A financial institution starts with submitting the IOLTA Compliance Form to the SC Bar Foundation.
2. What taxpayer ID number (TIN) should be used for IOLTA accounts?
The TIN number for all IOLTA accounts must be the Foundation’s TIN which is 23-7181552. The attorney’s or law firm’s TIN should never be used when an IOLTA account is opened. Bank statements should be sent to the account holder and not to the Foundation.
3. I need to verify a check on an IOLTA account – do I call the Foundation?
No, the Foundation has no direct oversight over any IOLTA accounts. You should call your client directly (the law firm or attorney) who opened the account. Many times, banks list IOLTA Accounts under the Foundation’s name and mistakenly list the Foundation’s address and phone number instead of the client’s. Be sure your IOLTA Account is set up so that the client is the one contacted about verifying checks.
4. Are IOLTA accounts subject to service charges? If so, who pays the service charges?
Financial institutions may choose to waive any and all fees on an IOLTA account. If the financial institution assesses service charges and fees on the IOLTA account, they should be reasonable and customary. Certain reasonable fees as defined in Rule 412 may not be deducted from the IOLTA principal but may be deducted from interest or dividends that are earned on the IOLTA account. All other fees and service charges are the responsibility of the attorney or law firm maintaining the account.
5. Do IOLTA accounts create tax consequences for attorneys or clients?
There are no tax consequences for the attorney or client. Financial institutions should not issue IRS 1099 forms to anyone including the attorney, law firm, nor the attorney’s client.
6. Who receives notice of insufficient funds?
Insufficient Funds (NSF) notices should be sent to the Office of Disciplinary Counsel. Their address is PO Box 12159, Columbia, SC 29211. A copy does NOT need to be sent to the Foundation.
7. What if an IOLTA account is hacked?
There is no requirement that you notify the Foundation.
8. What rate of interest must be paid on IOLTA accounts?
The rate of interest or dividend paid on IOLTA accounts shall not be less than the highest rate of interest or dividend generally available from the financial institution to non-IOLTA customers when the IOLTA account meets the same minimum balance or other eligibility qualifications.
An eligible institution may choose to pay a rate equal to the greater of 0.65% or 65% (the “index”) of the federal funds target rate (the “benchmark”) as of the first business day of the IOLTA remitting period which rate is deemed to be net of allowable reasonable fees, on an IOLTA checking account.
Eligible institutions may also choose to pay higher rates than the comparable rates described above.
9. What is a Prime Partner and how does an eligible institution become one?
Prime Partners are financial institutions that go above and beyond eligibility requirements to ensure the success of the IOLTA program and increase funding to law-related public service projects and programs designed to improve the administration of justice. These institutions pay an interest rate, net of allowable reasonable fees, that is equal to the highest of 75% of the Federal Funds Target Rate or 0.75%. The Foundation encourages attorneys and firms to support our Prime Partners. Contact the Foundation to learn about how your financial institution can become a Prime Partner.
You can view our list of Prime Partners below.
10. How is the benchmark rate determined?
The Benchmark rate is equal to the higher of 65% of the Federal Funds Target Rate, or 0.65%, and is effective on the first day of the financial institution’s reporting period. So, for example, if the Fed rate is changed on November 15th, the IOLTA rate should be changed effective December 1st for monthly reporting banks, and January 1st for quarterly reporting banks. The Federal Funds Target Rate can be found here and in many financial publications (Wall Street Journal, etc.).
You can view our list of Benchmark Institutions below.
11. Do financial institutions have to establish multiple types of IOLTA accounts based on different qualifications and rates?
No. We can work with you to create a single blended rate or tiered rates that are based on the current portfolio of products, without establishing IOLTA accounts in those different product types.
12. What if some accounts qualify for a higher interest rate and others do not?
Rule 412 allows financial institutions to pay different rates on different accounts. It is often more practical to consider a single blended rate, or tiered rates, which are calculated and based on the different products or rates individual accounts may qualify for.
13. What if we intend to change the amount of interest we pay on IOLTA accounts?
You will need to re-submit the IOLTA Compliance Form with the proposed change.
14. How does South Carolina address attorneys licensed in multiple states – does the attorney need an IOLTA account in each state they are licensed in?
If an attorney does not maintain an office in the state of South Carolina, s/he is not required to have an IOLTA account in South Carolina. If an attorney or firm has offices in multiple states, including South Carolina, they may need an IOLTA account benefitting more than one jurisdiction. The financial institution needs to be aware of which IOLTA account benefits which state, and remit the interest and reporting form accordingly.
15. Should I send bank statements to the attorney/client or to the SC Bar Foundation?
Monthly bank statements should go to the attorney or firm (your client), and not the SC Bar Foundation.
IOLTA-Eligible Financial Institutions
Several participating banks and credit unions pay interest on IOLTA funds above Rule 412’s requirements. The SC Bar Foundation is grateful for their generosity.
Prime Partners
Pay interest based on an index rate equal to 75% of the Federal Funds Target Rate or 0.75%, whichever is higher.
Benchmark Institutions
The following institutions pay interest on IOLTA accounts based on an index rate equal to 65% of the Federal Funds Target Rate or .65%, whichever is higher.
- Bank of Clarendon
- Bank of Greeleyville
- Metropolitan Commercial Bank
- Bank of Travelers Rest
- Encore Bank
- Esquire Bank
- Huntington National Bank
- Southern Bank
- Thomasville National Bank
Other Eligible Institutions
Certified by the SC Bar Foundation to hold IOLTA funds.
- Abbeville Savings & Loan
- Ameris Bank
- Anderson Brothers Bank
- Arthur State Bank
- Bank of America
- Bank of the Lowcountry
- Bank of South Carolina
- Bank of York
- Beacon Community Bank
- Blue Ridge Bank
- Capital Bank
- Citibank
- Coastal Carolina National Bank
- Coastal States Bank
- Community First Bank
- Conway National Bank
- Countybank
- Dedicated Community Bank
- Dogwood State Bank
- Enterprise Bank of SC
- Farmers & Merchants Bank of SC
- Fifth Third Bank
- FineMark Bank
- First American Trust
- First Bank
- First Capital Bank
- First Citizens
- First Community Bank
- First Federal Bank of Florida
- First Federal Bank of South Carolina
- First National Bank of Pennsylvania
- First Palmetto Bank
- First Piedmont
- First Reliance Bank
- HomeTrust Bank
- JP Morgan Chase
- MVB Bank
- Oconee Federal Saving & Loan
- Optus Bank
- Palmetto State Bank
- Pee Dee Federal Savings Bank
- Pickens Savings & Loan Association
- PNC Bank
- Regions Bank
- ServisFirst Bank
- South Atlantic Bank
- South State Bank
- Southern First Bank
- Spratt Savings Bank
- Synovus
- TD Bank
- The Citizens Bank
- The Fidelity Bank
- The Gratz Bank
- The Peoples Bank
- TowneBank
- Truist Bank
- UMB Bank
- United Bank
- United Community Bank