Definition of Escrow account:
Banking: Account to which an accountholder makes monthly or other periodic deposits, and authorizes the bank to withdraw funds to pay for certain fixed obligations such as taxes, rent, insurance premium.
Accounting: Account in which funds are accumulated for specific disbursements.
How to use Escrow account in a sentence?
- The escrow account was growing larger over time and our analysts could not pinpoint precisely why the taxes were not getting paid.
- You may want to set some money aside in an escrow account for a rainy day as a sort of emergency fund if you need it.
- My dad was telling me how he had an escrow account and that made me kind of surprised because I had no idea he was involved in that kind of accounting.
Meaning of Escrow account & Escrow account Definition