(if you are an attorney, your questions can probably be answered by the Lawyer FAQ.)
Q. What is an IOLA account?
An Interest on Lawyer Account (IOLA Account) is a type of attorney escrow account in which lawyers can pool the small (or briefly-held) deposits of multiple clients. Please see our About IOLA page for more information.
Q. Should we offer IOLA accounts?
No bank is required to participate in the IOLA program. However, since many attorneys are required to maintain IOLA accounts as part of their practice, almost 200 New York banks choose to offer IOLA accounts as a service to attorneys or firms.
Q. We wish to start offering IOLA accounts. Can we just start opening them today?
No! You must submit a request to the Fund to become a “participating bank.” You cannot open IOLA accounts until you have been approved by the Fund.
Q. How do we become a participant in the IOLA program?
Click here to download our New Bank Package. After you submit all required information to the Fund (and assuming your proposed interest rate complies with IOLA's regulations), the Fund will send you the information you will need to begin participating.
Q. How do we set the interest rate on IOLA accounts?
The Trustees’ Regulations provide a standard of “comparability” which requires that IOLA accounts pay no less than the highest rate paid on comparable accounts at the bank. To determine which accounts at your bank are comparable, see Section 7000.9 of the Trustees Regulations, or contact the Fund for assistance.
Q. We have been approved. What next?
Download IOLA's Operational Guidelines for banks. It contains all the information you will need to begin offering IOLA accounts to your customers. If you have any further questions, contact the Bank Liaison at the Fund.
Q. What is the Tax ID# for IOLA accounts?
Every IOLA account in New York State has the same Tax ID Number: 13-3246797.
Q. How does the FDIC cover IOLA deposits?
Effective November 21, 2008, the FDIC established unlimited deposit insurance for IOLA accounts -- but bank participation in this new insurance program is optional. Be sure to ask your bank if its IOLA accounts have unlimited FDIC coverage. Also, you can visit the FDIC website for more information about how escrow deposits are insured.
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