What are escrow accounts?
In: Other
It’s where money sits until a specific thing happens and the money is released.
A pretty common one is your mortgage lender may have set one up for you “for your convineince”, but mostly for their protection.
They have you pay into this holding account every month and then use that account to pay your annual home owners insurance and property tax for you.
They want to be certain these are paid to protect themselves.
An escrow account is not required, and you can opt to not use one if you are very confident you will set aside money on your own and not be suprised by these bills.
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