# Escrow Earns Interest?

**URL:** <https://boards.straightdope.com/t/escrow-earns-interest/528507>\
**Category:** Factual Questions\
**Created:** [February 11, 2010, 12:38am UTC](https://boards.straightdope.com/t/escrow-earns-interest/528507 "2010-02-11T00:38:14Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Jinx](https://avatars.discourse-cdn.com/v4/letter/j/c6cbf5/32.png) [@Jinx](https://boards.straightdope.com/u/Jinx)\
**Post date:** [February 11, 2010, 12:38am UTC](https://boards.straightdope.com/t/escrow-earns-interest/528507/1 "2010-02-11T00:38:14Z")

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I’m not sure if we simply never noticed this before, but we got a 1099 form for $35 in interest earned by our mortgage’s escrow account (holding funds in reserve for property taxes and such). Is this something new? And, how do I know for certain that my mortgage company is putting this interest into my escrow account?

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**Author:** ![SmartAlecCat](https://avatars.discourse-cdn.com/v4/letter/s/67e7ee/32.png) [@SmartAlecCat](https://boards.straightdope.com/u/SmartAlecCat)\
**Post date:** [February 11, 2010, 1:00am UTC](https://boards.straightdope.com/t/escrow-earns-interest/528507/2 "2010-02-11T01:00:19Z")

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Look at your escrow statement. Is there a line for “earned interest”?

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**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\
**Post date:** [February 11, 2010, 1:02am UTC](https://boards.straightdope.com/t/escrow-earns-interest/528507/3 "2010-02-11T01:02:05Z")

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The bank always used to do that for our escrow account.

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**Author:** ![Polycarp](https://avatars.discourse-cdn.com/v4/letter/p/82dd89/32.png) [@Polycarp](https://boards.straightdope.com/u/Polycarp)\
**Post date:** [February 11, 2010, 1:39am UTC](https://boards.straightdope.com/t/escrow-earns-interest/528507/4 "2010-02-11T01:39:14Z")

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So a couple seeking a loan goes into a bank, and is shown into the loan arranger’s office. On a mantel off at one side, on a bust of Edgar Allan Poe, sits a large black bird wearing a pullover reminiscent of Superman’s costume. The man of the couple looked at the bird and smiled. “I suppose,” he said, “that when you need to turn down a loan, you have him say ‘Nevermore’?” The loan officer chuckled. “No,” he said, “he’s actually a teller; he handles our “S” crow accounts.” 😃