Managing my own escrow
January 17, 2006 11:43 AM   Subscribe

Managing my own escrow, where to put the money?

We're in the process of buying a new home and in the interestsof saving a few bucks we're going to manage our own escrow. We're good about putting money aside each month so I'm not worried about the savings part, but what type of account should I use to hold the money?

A basic savings account? Money market?
posted by beowulf573 to Work & Money (7 answers total)
We have ours in a money market account, but that's mostly only because I had the account set up a few years ago and wasn't using it for anything else.
posted by gnomeloaf at 11:56 AM on January 17, 2006

isn't escrow, by definition, a third party?

The holding of funds, documents, securities, or other property by an impartial third party for the other two participants in a business transaction. When the transaction is completed, the escrow agent releases the entrusted property.

posted by Izzmeister at 12:56 PM on January 17, 2006

Izzmeister: 2nd result
posted by Four Flavors at 1:04 PM on January 17, 2006

The Orange Savings Account at ING is a good choice for that.
posted by spilon at 1:04 PM on January 17, 2006

HSBC and Emigrant are also good places to put the money, and pay a little better than ING.
posted by kindall at 1:17 PM on January 17, 2006

I believe that what beowulf is saying is that rather than having the mortgage company pay the property taxes and homeowners insurance for him (the mortgage company puts it into an escrow account), he'd rather be responsible for paying them himself. It's not a conflict of interest, since it's no longer an "escrow account" if he's paying the bills himself.
posted by gnomeloaf at 4:29 PM on January 17, 2006

Response by poster: Yes, sorry if I wasn't clear. I could pay the mortgage company to hold taxes and insurance in escrow for me, however I'll have e to pay them for that right and it won't be earning any money for me. Since I'm a good saver and good about paying bills, I'd rather doing it myself and save a few bucks.

I've heard this commonly referred to as 'managing your own escrow' even though technically that phrase may not be correct.

Regardless, I need a safe account to store the funds in, but rather use something that make more than my current savings account at Wells Fargo. The suggests above look interesting and will get me started, thanks.
posted by beowulf573 at 5:09 PM on January 17, 2006

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