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Escrow Account

M.Aravinda Kumar (Finance) (83 Points)

13 October 2007

Any can explain in detail about Escrow Account in a Bank?

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7 Replies

CA.Saibaburao Nanduri (Chartered Accountant) (3847 Points)
Replied 13 October 2007

Dear M.Aravinda Kumar ! Use an Escrow account for money that you manage, but don't own. The money may be due to you in the future, or it may go to another party in the future. Escrow accounts are neither assets nor liabilities-- they are not included on your balance sheet at all. Use Escrow accounts for: Rental deposits Gift certificate and layaway funds Client money which you are managing temporarily Taxes that you have collected but not yet paid, that must be kept in an escrow account

Nirmal1986 (articles) (149 Points)
Replied 29 October 2007

what does escrow means ?

saran kumar (student) (145 Points)
Replied 31 October 2007

escrow means an instrument or a written agrement

Ramakrishna (Financial Executive) (438 Points)
Replied 06 November 2007

Dear Friends, First of all, would you mind explain who is entitled to open such an account? What are the general pre requisites? Tthe procedure for opening an Escrow A/c. With regards,

Rachana Gadage (Account Executive) (136 Points)
Replied 08 November 2007

Hi, In US market, Escrow a/c is required for payment of Property tax. From EMI of House Loan co is transfering that tax amount to Escrow a/c. This account is open only in case of House Loan

Ramakrishna (Financial Executive) (438 Points)
Replied 09 November 2007

Dear Gadage, You are mentioning one of the utilities of the Escrow A/c. Please explain how the account in the Indian context? Please post your response.

(Guest)

Hellow to all,

I want to work as a freelancer. i've seen some of the web sites about freelancing work . if i start working then how can i get my payment on internet.

some of the web sites mentioned about escrow account. Can i open any escrow account.