James should pay the interest earned on the client money to the client unless otherwise agreed in writing. According to the SRA Accounts Rules, solicitors must ensure that any interest earned on client funds is either paid to the client or handled as per the client's agreement. Key Point: The SRA Accounts Rules mandate that interest earned on client funds must benefit the client unless there is an agreement stating otherwise. This rule ensures that the client's financial interests are protected and that solicitors act in accordance with fiduciary duties.